Urban Outfitters, Inc. (URBN) Upgraded at Zacks Investment Research
Urban Outfitters, Inc. (NASDAQ:URBN) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Tuesday. The brokerage presently has a $26.00 target price on the apparel retailer’s stock. Zacks Investment Research‘s target price would suggest a potential upside of 13.34% from the company’s previous close.
According to Zacks, “Urban Outfitter shares have taken a sharp U-turn following better-than-expected second-quarter fiscal 2018 results for the first time in trailing four quarters. The bullish run in the stock price helped it to outpace the industry in the past three months. 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. However, along with top and bottom line, comparable retail segment net sales also fell for the reported quarter. Moreover, management’s remark over gross margin, which is anticipated to decline year over year in the third quarter due to rise in delivery as well as de-leverage in store occupancy expenditures is a major concern for investors.”
Other equities analysts have also recently issued reports about the company. Royal Bank Of Canada boosted their price target on Urban Outfitters from $17.00 to $21.00 and gave the stock a “sector perform” rating in a report on Wednesday, August 16th. SunTrust Banks, Inc. reissued a “buy” rating on shares of Urban Outfitters in a report on Wednesday, August 16th. KeyCorp set a $26.00 price target on Urban Outfitters and gave the stock a “buy” rating in a report on Wednesday, August 16th. BMO Capital Markets set a $20.00 price target on Urban Outfitters and gave the stock a “hold” rating in a report on Thursday, July 6th. Finally, MKM Partners set a $16.00 price target on Urban Outfitters and gave the stock a “sell” rating in a report on Wednesday, August 16th. Three equities research analysts have rated the stock with a sell rating, twenty have given a hold rating and eight have assigned a buy rating to the company. Urban Outfitters has a consensus rating of “Hold” and a consensus target price of $22.39.
Shares of Urban Outfitters (URBN) traded down 0.13% during mid-day trading on Tuesday, reaching $22.91. The company’s stock had a trading volume of 1,725,204 shares. Urban Outfitters has a 1-year low of $16.19 and a 1-year high of $40.80. The company’s 50-day moving average is $22.64 and its 200 day moving average is $20.59. The firm has a market capitalization of $2.52 billion, a P/E ratio of 15.33 and a beta of 0.62.
Urban Outfitters (NASDAQ:URBN) last released its quarterly earnings results on Tuesday, August 15th. The apparel retailer reported $0.44 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.37 by $0.07. Urban Outfitters had a return on equity of 13.61% and a net margin of 4.92%. The company had revenue of $873.00 million during the quarter, compared to analysts’ expectations of $860.80 million. During the same period in the previous year, the firm posted $0.66 earnings per share. The business’s revenue for the quarter was down 2.0% compared to the same quarter last year. On average, analysts expect that Urban Outfitters will post $1.41 earnings per share for the current year.
Urban Outfitters declared that its board has approved a stock buyback program on Thursday, August 24th that allows the company to repurchase $20.00 million in outstanding shares. This repurchase authorization allows the apparel retailer to reacquire up to 0.9% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s board believes its stock is undervalued.
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Large investors have recently added to or reduced their stakes in the stock. Bank of Nova Scotia acquired a new position in shares of Urban Outfitters in the first quarter worth about $251,000. Tower Research Capital LLC TRC raised its stake in Urban Outfitters by 70.2% during the second quarter. Tower Research Capital LLC TRC now owns 3,758 shares of the apparel retailer’s stock valued at $104,000 after buying an additional 1,550 shares in the last quarter. Fuller & Thaler Asset Management Inc. acquired a new stake in Urban Outfitters during the second quarter valued at approximately $121,000. LS Investment Advisors LLC raised its stake in Urban Outfitters by 16.0% during the second quarter. LS Investment Advisors LLC now owns 4,708 shares of the apparel retailer’s stock valued at $129,000 after buying an additional 651 shares in the last quarter. Finally, Robecosam AG raised its stake in Urban Outfitters by 25.0% during the third quarter. Robecosam AG now owns 5,000 shares of the apparel retailer’s stock valued at $172,000 after buying an additional 1,000 shares in the last quarter. Institutional investors and hedge funds own 87.56% 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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