Zacks Investment Research lowered shares of Urban Outfitters (NASDAQ:URBN) from a buy rating to a hold rating in a report published on Monday morning.
According to Zacks, “Shares of Urban Outfitters have surged and outpaced the industry in a year, courtesy of positive earnings and sales surprise streak. We are upbeat on the company’s third-quarter fiscal 2019 performance, wherein both the top and bottom lines grew year over year and also beat the consensus mark for the sixth successive time. Notably, comparable retail segment net sales increased for the fifth quarter in row, while all the three brands registered comps growth. We believe new store openings, increased digital penetration, merchandising improvements and international expansion bode well. Management is also making efforts to enhance the performance of brands through store refurbishment and by bringing in more compelling assortments. However, a likely increase in SG&A expenses during the final quarter owing to higher digital marketing investments, incentive-based compensation and increased store payroll may strain margins to an extent.”
Several other equities analysts have also recently commented on the company. BidaskClub cut Urban Outfitters from a buy rating to a hold rating in a report on Tuesday, September 18th. Nomura increased their target price on Urban Outfitters from $40.00 to $43.00 and gave the stock a neutral rating in a report on Wednesday, August 22nd. Wedbush reissued a hold rating and issued a $35.00 target price (down from $50.00) on shares of Urban Outfitters in a report on Thursday, October 11th. Jefferies Financial Group set a $58.00 target price on Urban Outfitters and gave the stock a buy rating in a report on Wednesday, August 22nd. Finally, ValuEngine cut Urban Outfitters from a buy rating to a hold rating in a report on Friday, September 14th. Three investment analysts have rated the stock with a sell rating, thirteen have issued a hold rating and eight have assigned a buy rating to the company. Urban Outfitters currently has a consensus rating of Hold and a consensus target price of $45.27.
Urban Outfitters (NASDAQ:URBN) last posted its quarterly earnings results on Monday, November 19th. The apparel retailer reported $0.70 EPS for the quarter, beating the consensus estimate of $0.63 by $0.07. The firm had revenue of $973.50 million during the quarter, compared to analysts’ expectations of $967.82 million. Urban Outfitters had a return on equity of 20.65% and a net margin of 5.44%. The company’s revenue for the quarter was up 9.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.41 EPS. Equities research analysts expect that Urban Outfitters will post 2.73 earnings per share for the current year.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. grew its position in Urban Outfitters by 7.9% during the 2nd quarter. BlackRock Inc. now owns 10,188,634 shares of the apparel retailer’s stock worth $453,903,000 after acquiring an additional 749,276 shares during the last quarter. Vanguard Group Inc. grew its position in Urban Outfitters by 5.0% during the 3rd quarter. Vanguard Group Inc. now owns 8,466,147 shares of the apparel retailer’s stock worth $346,266,000 after acquiring an additional 406,691 shares during the last quarter. FMR LLC grew its position in Urban Outfitters by 79.7% during the 2nd quarter. FMR LLC now owns 7,872,878 shares of the apparel retailer’s stock worth $350,737,000 after acquiring an additional 3,492,613 shares during the last quarter. AQR Capital Management LLC grew its position in Urban Outfitters by 547.6% during the 3rd quarter. AQR Capital Management LLC now owns 4,487,410 shares of the apparel retailer’s stock worth $183,535,000 after acquiring an additional 3,794,451 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA grew its position in Urban Outfitters by 3.8% during the 3rd quarter. Massachusetts Financial Services Co. MA now owns 3,355,163 shares of the apparel retailer’s stock worth $137,226,000 after acquiring an additional 122,134 shares during the last quarter. Institutional investors and hedge funds own 81.24% of the company’s stock.
About Urban Outfitters
Urban Outfitters, Inc, a lifestyle products and services company, engages in the retail and wholesale of general consumer products. The company retails women's and men's fashion apparel, activewear, intimates, footwear, accessories, home goods, electronics, and beauty products for young adults aged 18 to 28 under the Urban Outfitters brand; and women's casual apparel and accessories, intimates, shoes, and home furnishings, as well as gifts, decorative items, and beauty products for women aged 28 to 45 under the Anthropologie brand.
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