Lululemon Falls on Rumor That Einhorn is Short

Shares of Lululemon

have fallen sharply during Tuesday's trading session after more market rumors surfaced that David Einhorn's Greenlight Capital is short the stock. With less than two hours left in the trading day, LULU was down more than four percent and moving on very heavy volume. Around 3.1 million LULU shares had already traded hands on the day compared to a three-month daily average of just over 2.8 million. LULU has been a top momentum stock in recent years, and the shares are up better than 347 percent over the last five years. Year-to-date, the stock has risen almost 64 percent, including a 21 percent gain over the last three months. Given the strong growth at the yoga-inspired apparel retailer and the continued performance of the stock, LULU trades at a lofty valuation. The stock trades at a trailing P/E of nearly 50, a forward P/E of 33 and a PEG ratio of 1.56. David Einhorn has been noted to target companies with high valuations in the past, such as Green Mountain Coffee Roasters

and Chipotle

.