Urban Outfitters, Inc. (NASDAQ:URBN) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors on Friday.

According to Zacks, “Urban Outfitters’ shares have declined significantly in the past six months and also underperformed the industry by a wide margin primarily due to lower-than-expected earnings for the third consecutive quarter. Further, the company’s top-line fell short of the estimate for the fourth consecutive quarter, when it posted first-quarter fiscal 2018 results. Moreover, investors are also concerned by management’s remark over gross margin, which is expected to decline year over year in second-quarter fiscal 2018 due to  rise in delivery and logistic expenses, higher markdowns at and lower initial mark up. However, new store openings, increase in direct penetration, growing wholesale operations, technology advancements and merchandising improvements bode well for the long term. Management is also making all possible efforts to enhance the performance of brands through store refurbishment and by bringing in more compelling assortments.”

Several other equities analysts also recently issued reports on URBN. Wedbush cut their price objective on shares of Urban Outfitters to $26.00 in a report on Wednesday, March 8th. Stifel Nicolaus restated a “buy” rating and set a $32.00 price objective (down previously from $34.00) on shares of Urban Outfitters in a report on Wednesday, February 8th. Vetr downgraded shares of Urban Outfitters from a “strong-buy” rating to a “buy” rating and set a $28.87 price objective on the stock. in a report on Monday, March 6th. Wunderlich upgraded shares of Urban Outfitters from a “hold” rating to a “buy” rating in a report on Tuesday, January 31st. Finally, Jefferies Group LLC restated a “buy” rating and set a $35.00 price objective on shares of Urban Outfitters in a report on Wednesday, March 8th. Three equities research analysts have rated the stock with a sell rating, nineteen have given a hold rating and nine have assigned a buy rating to the company. Urban Outfitters currently has an average rating of “Hold” and an average target price of $27.88.

Analyst Recommendations for Urban Outfitters (NASDAQ:URBN)

Shares of Urban Outfitters (NASDAQ:URBN) opened at 19.45 on Friday. The company has a market capitalization of $2.26 billion, a price-to-earnings ratio of 11.35 and a beta of 0.66. Urban Outfitters has a 1-year low of $18.76 and a 1-year high of $40.80. The firm’s 50-day moving average is $22.55 and its 200-day moving average is $27.31.

Urban Outfitters (NASDAQ:URBN) last released its quarterly earnings results on Tuesday, May 16th. The apparel retailer reported $0.13 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.16 by $0.03. The firm had revenue of $761.20 million for the quarter, compared to analysts’ expectations of $768.95 million. Urban Outfitters had a net margin of 6.42% and a return on equity of 18.88%. The business’s quarterly revenue was down .2% compared to the same quarter last year. During the same period in the previous year, the company posted $0.25 earnings per share. Analysts forecast that Urban Outfitters will post $1.58 earnings per share for the current fiscal year.

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A number of hedge funds and other institutional investors have recently made changes to their positions in URBN. Bank of Nova Scotia purchased a new position in shares of Urban Outfitters during the first quarter worth $251,000. Robecosam AG raised its position in shares of Urban Outfitters by 25.0% in the third quarter. Robecosam AG now owns 5,000 shares of the apparel retailer’s stock worth $172,000 after buying an additional 1,000 shares during the last quarter. LS Investment Advisors LLC raised its position in shares of Urban Outfitters by 117.7% in the first quarter. LS Investment Advisors LLC now owns 8,436 shares of the apparel retailer’s stock worth $200,000 after buying an additional 4,561 shares during the last quarter. Miles Capital Inc. raised its position in shares of Urban Outfitters by 0.8% in the first quarter. Miles Capital Inc. now owns 8,470 shares of the apparel retailer’s stock worth $201,000 after buying an additional 70 shares during the last quarter. Finally, Pacer Advisors Inc. raised its position in shares of Urban Outfitters by 3.0% in the third quarter. Pacer Advisors Inc. now owns 10,500 shares of the apparel retailer’s stock worth $362,000 after buying an additional 306 shares during the last quarter. Institutional investors own 78.05% of the company’s stock.

Urban Outfitters Company Profile

Urban Outfitters, Inc is a lifestyle specialty retail company. The Company operates through two segments: Retail and Wholesale. The Company’s Retail segment consists of its Urban Outfitters, Anthropologie, Free People, Terrain and Bhldn brands, whose merchandise is sold to its customers through retail stores, Websites, mobile applications, catalogs and customer contact centers.

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