Urban Outfitters (URBN) Lowered to “Hold” at Zacks Investment Research

Urban Outfitters (NASDAQ:URBN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Monday.

According to Zacks, “Shares of Urban Outfitters, which have outperformed the industry in the past three months is likely to continue the bull run. We are upbeat on the company’s performance based on rise in sales during the holiday season. Its comparable retail segment net sales, including the comparable direct-to-consumer channel, gained 2%. Moreover, the company’s all three brands reported rise in comps for the November and December period. Further, new store openings, increase in direct penetration, growing wholesale operations 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, management’s remark over gross margin, which is anticipated to decline year over year in the fourth quarter is a concern.”

URBN has been the subject of several other reports. JPMorgan Chase & Co. upgraded Urban Outfitters from a “neutral” rating to an “overweight” rating in a research note on Tuesday, November 21st. Wolfe Research upgraded Urban Outfitters from a “peer perform” rating to an “outperform” rating and set a $30.00 price target for the company in a research note on Wednesday, November 15th. Deutsche Bank downgraded Urban Outfitters from a “hold” rating to a “sell” rating and reduced their price target for the company from $23.00 to $19.00 in a research note on Tuesday, October 3rd. Nomura restated a “neutral” rating and issued a $30.00 price target (up from $26.00) on shares of Urban Outfitters in a research note on Wednesday, January 17th. Finally, Robert W. Baird restated a “buy” rating and issued a $35.00 price target on shares of Urban Outfitters in a research note on Friday, December 15th. Three investment analysts have rated the stock with a sell rating, twenty-one have given a hold rating and eleven have given a buy rating to the company. Urban Outfitters currently has a consensus rating of “Hold” and a consensus target price of $26.40.

Urban Outfitters (URBN) traded up $0.28 on Monday, reaching $35.10. The company had a trading volume of 1,604,921 shares, compared to its average volume of 2,755,414. The company has a market cap of $3,770.00, a P/E ratio of 23.40, a PEG ratio of 1.86 and a beta of 0.73. Urban Outfitters has a twelve month low of $16.19 and a twelve month high of $36.10.

Urban Outfitters (NASDAQ:URBN) last released its quarterly earnings results on Monday, November 20th. The apparel retailer reported $0.41 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.33 by $0.08. The business had revenue of $892.77 million during the quarter, compared to the consensus estimate of $860.64 million. Urban Outfitters had a return on equity of 13.34% and a net margin of 4.81%. The firm’s quarterly revenue was up 3.5% on a year-over-year basis. During the same period in the previous year, the company posted $0.40 EPS. sell-side analysts forecast that Urban Outfitters will post 1.56 EPS for the current fiscal year.

A number of institutional investors and hedge funds have recently modified their holdings of URBN. Principal Financial Group Inc. grew its position in shares of Urban Outfitters by 1.9% in the 2nd quarter. Principal Financial Group Inc. now owns 374,732 shares of the apparel retailer’s stock valued at $6,947,000 after buying an additional 7,166 shares during the last quarter. JPMorgan Chase & Co. grew its position in shares of Urban Outfitters by 83.8% in the 2nd quarter. JPMorgan Chase & Co. now owns 325,058 shares of the apparel retailer’s stock valued at $6,026,000 after buying an additional 148,215 shares during the last quarter. Ameriprise Financial Inc. grew its position in shares of Urban Outfitters by 15.6% in the 2nd quarter. Ameriprise Financial Inc. now owns 283,120 shares of the apparel retailer’s stock valued at $5,247,000 after buying an additional 38,168 shares during the last quarter. Amalgamated Bank grew its position in shares of Urban Outfitters by 18.1% in the 2nd quarter. Amalgamated Bank now owns 16,892 shares of the apparel retailer’s stock valued at $313,000 after buying an additional 2,584 shares during the last quarter. Finally, PNC Financial Services Group Inc. grew its position in shares of Urban Outfitters by 16.2% in the 2nd quarter. PNC Financial Services Group Inc. now owns 17,995 shares of the apparel retailer’s stock valued at $334,000 after buying an additional 2,515 shares during the last quarter. 85.94% of the stock is owned by institutional investors and hedge funds.

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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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Analyst Recommendations for Urban Outfitters (NASDAQ:URBN)

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