NEW YORK (TheStreet) -- Shares of Lululemon Athletica (LULU) - Get Report are higher by 1.91% to $58.73 in pre-market trading on Tuesday morning, after hedge fund Lone Pine took a 5% stake in the yoga pants maker.
The hedge fund, which is run by retail insider Stephen Mandel, now owns over 6 million shares of the Vancouver-based athletic apparel seller. Lone Pine now has a 5% stake in Lululemon.
Earlier this month, Lululemon raised its guidance for the fourth quarter following a strong 2015 holiday season, the Wall Street Journal reported.
The company has revised its earnings forecast for the three month period ending Jan. 31 to a range between 78 cents and 80 cents per share. This range is above the 75 cents to 78 cents per share the company was previously anticipating.
Revenue is now believed to be coming in between $690 million and $695 million for the quarter, compared to the $670 million to $685 million Lululemon had been expecting.
Separately, TheStreet Ratings has set a "hold" rating and score of C+ on Lululemon Athletica stock. The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, TheStreet Ratings also finds weaknesses including unimpressive growth in net income, premium valuation and weak operating cash flow.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: LULU