Urban Outfitters, Inc. (NASDAQ:URBN) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Tuesday. The brokerage presently has a $26.00 target price on the apparel retailer’s stock. Zacks Investment Research‘s price target points to a potential upside of 13.34% from the stock’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.”
A number of other research firms also recently issued reports on URBN. Deutsche Bank AG reissued a “hold” rating and issued a $18.00 price target (down from $19.00) on shares of Urban Outfitters in a research note on Friday, August 11th. FBR & Co reduced their price target on shares of Urban Outfitters from $24.00 to $16.00 and set a “neutral” rating on the stock in a research note on Tuesday, August 15th. Oppenheimer Holdings, Inc. reissued a “hold” rating on shares of Urban Outfitters in a research note on Tuesday, August 15th. Royal Bank Of Canada boosted their price target on shares of Urban Outfitters from $17.00 to $21.00 and gave the company a “sector perform” rating in a research note on Wednesday, August 16th. Finally, BMO Capital Markets set a $20.00 target price on shares of Urban Outfitters and gave the stock a “hold” rating in a research note on Tuesday, August 8th. Three research analysts have rated the stock with a sell rating, twenty have assigned a hold rating and eight have given a buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and a consensus target price of $22.39.
Shares of Urban Outfitters (URBN) traded up 0.09% during trading on Tuesday, hitting $22.96. 1,764,857 shares of the stock were exchanged. The stock’s 50 day moving average price is $22.64 and its 200-day moving average price is $20.59. Urban Outfitters has a one year low of $16.19 and a one year high of $40.80. The company has a market cap of $2.52 billion, a price-to-earnings ratio of 15.37 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 (EPS) for the quarter, beating analysts’ consensus estimates of $0.37 by $0.07. The business had revenue of $873.00 million for 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 business’s revenue was down 2.0% on a year-over-year basis. During the same period in the previous year, the firm earned $0.66 EPS. On average, analysts predict that Urban Outfitters will post $1.41 EPS for the current year.
Urban Outfitters declared that its Board of Directors has approved a share buyback program on Thursday, August 24th that permits the company to buyback $20.00 million in shares. This buyback authorization permits the apparel retailer to buy up to 0.9% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board believes its shares are undervalued.
A number of institutional investors have recently made changes to their positions in URBN. Sun Life Financial INC purchased a new position in Urban Outfitters during the 2nd quarter worth $151,000. LS Investment Advisors LLC raised its position in Urban Outfitters by 12.5% during the 2nd quarter. LS Investment Advisors LLC now owns 9,488 shares of the apparel retailer’s stock worth $176,000 after buying an additional 1,052 shares during the last quarter. Pacad Investment Ltd. purchased a new position in Urban Outfitters during the 2nd quarter worth $191,000. BT Investment Management Ltd purchased a new position in Urban Outfitters during the 2nd quarter worth $196,000. Finally, Oppenheimer Asset Management Inc. raised its position in Urban Outfitters by 0.4% during the 2nd quarter. Oppenheimer Asset Management Inc. now owns 10,691 shares of the apparel retailer’s stock worth $198,000 after buying an additional 43 shares during the last quarter. Institutional investors own 87.56% of the company’s stock.
About Urban Outfitters
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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