Zacks Investment Research upgraded shares of Urban Outfitters, Inc. (NASDAQ:URBN) from a hold rating to a buy rating in a research note published on Tuesday morning. Zacks Investment Research currently has $26.00 target price on the apparel retailer’s stock.
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.”
A number of other research firms also recently weighed in on URBN. Deutsche Bank AG restated a hold rating and issued a $18.00 price objective (down from $19.00) on shares of Urban Outfitters in a report on Friday, August 11th. FBR & Co decreased their price objective on Urban Outfitters from $24.00 to $16.00 and set a neutral rating for the company in a report on Tuesday, August 15th. Oppenheimer Holdings, Inc. restated a hold rating on shares of Urban Outfitters in a report on Tuesday, August 15th. Royal Bank Of Canada increased their price objective on Urban Outfitters from $17.00 to $21.00 and gave the company a sector perform rating in a report on Wednesday, August 16th. Finally, BMO Capital Markets set a $20.00 price objective on Urban Outfitters and gave the company a hold rating in a report on Tuesday, August 8th. Three equities research analysts have rated the stock with a sell rating, twenty have issued a hold rating and eight have given a buy rating to the company’s stock. Urban Outfitters presently has a consensus rating of Hold and an average target price of $22.39.
Shares of Urban Outfitters (NASDAQ:URBN) traded up 3.29% on Tuesday, reaching $24.50. The company’s stock had a trading volume of 1,698,966 shares. The company has a market cap of $2.69 billion, a PE ratio of 16.40 and a beta of 0.63. Urban Outfitters has a 52-week low of $16.19 and a 52-week high of $40.80. The firm has a 50 day moving average of $22.89 and a 200 day moving average of $20.62.
Urban Outfitters (NASDAQ:URBN) last announced its quarterly earnings results on Tuesday, August 15th. The apparel retailer reported $0.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.37 by $0.07. The company had revenue of $873.00 million during the quarter, compared to the consensus estimate of $860.80 million. Urban Outfitters had a net margin of 4.92% and a return on equity of 13.61%. The company’s revenue for the quarter was down 2.0% compared to the same quarter last year. During the same period in the prior year, the business earned $0.66 earnings per share. Analysts predict that Urban Outfitters will post $1.41 earnings per share for the current year.
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Urban Outfitters announced that its board has approved a stock buyback plan on Thursday, August 24th that permits the company to repurchase $20.00 million in shares. This repurchase authorization permits the apparel retailer to reacquire up to 0.9% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board believes its stock is undervalued.
A number of large investors have recently bought and sold shares of URBN. Sun Life Financial INC purchased a new stake in Urban Outfitters in the 2nd quarter valued at about $151,000. LS Investment Advisors LLC increased its stake in Urban Outfitters by 12.5% in the 2nd quarter. LS Investment Advisors LLC now owns 9,488 shares of the apparel retailer’s stock valued at $176,000 after buying an additional 1,052 shares during the last quarter. Pacad Investment Ltd. purchased a new stake in Urban Outfitters in the 2nd quarter valued at about $191,000. BT Investment Management Ltd purchased a new stake in Urban Outfitters in the 2nd quarter valued at about $196,000. Finally, Oppenheimer Asset Management Inc. increased its stake in Urban Outfitters by 0.4% in the 2nd quarter. Oppenheimer Asset Management Inc. now owns 10,691 shares of the apparel retailer’s stock valued at $198,000 after buying an additional 43 shares during the last quarter. Hedge funds and other institutional investors 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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