Lululemon Insider Unloads Almost $2.4 Million In Stock Sale (LULU)

Lululemon Athletica Inc. (NASDAQ: LULU) has seen its investor growth prospects dim compared to what we have seen in past quarters.  Sales are up huge, but the stock has matured after valuations reached nose-bleed levels.

So… What happens when you see the company’s Chairman of the board Dennis Wilson sell almost $2.4 million worth of stock?  Don’t panic, the 50,000 shares sold were part of a 10b5-1 established trading plan.  This effectively allows an insider like this to continue making planned share sales even if the officer manages to come into the “possession of material non-public information.” 

As Chairman, of course there is material non-public information.  Dennis Wilson founded Lululemon in 1998 and he is also referred to as the Chief Innovation Officer.  He still holds the beneficial ownership of 10,328,858 shares today, so this $2.4 million compares to a total market value of the current holdings of nearly $500 million at prevailing market prices today.

After a near 3% drop to $47.25 today, the 52-week trading range for Lululemon shares is $32.65 to $64.49.

JON C. OGG