Urban Outfitters (URBN) Upgraded at Zacks Investment Research

Urban Outfitters (NASDAQ:URBN) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Saturday. The brokerage currently has a $44.00 price target on the apparel retailer’s stock. Zacks Investment Research‘s target price would suggest a potential upside of 18.79% from the company’s previous close.

According to Zacks, “Shares of Urban Outfitters have increased and outpaced the industry in a year, driven by the company’s positive surprise streak. We are upbeat on the company’s second-quarter fiscal 2019 performance, wherein both the top and bottom lines grew year over year. Notably, comparable retail segment net sales increased for the fourth quarter in row, while all the three brands registered comps growth. Management expects third quarter sales comps to grow high-single digit. 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, management expects SG&A expenses to increase in the third quarter due to higher digital marketing investments, incentive-based compensation and increased store payroll.”

URBN has been the subject of a number of other research reports. B. Riley lifted their price objective on shares of Urban Outfitters from $42.00 to $52.00 and gave the company a “neutral” rating in a report on Wednesday, August 22nd. SunTrust Banks boosted their price target on shares of Urban Outfitters to $55.00 and gave the company a “positive” rating in a report on Wednesday, August 22nd. DA Davidson began coverage on shares of Urban Outfitters in a report on Tuesday, September 25th. They issued a “neutral” rating and a $40.00 price target for the company. Loop Capital boosted their price target on shares of Urban Outfitters from $55.00 to $56.00 and gave the company a “sell” rating in a report on Tuesday, August 21st. Finally, BidaskClub lowered shares of Urban Outfitters from a “buy” rating to a “hold” rating in a report on Tuesday, September 18th. Two investment analysts have rated the stock with a sell rating, fourteen have assigned a hold rating and nine have given a buy rating to the stock. The company presently has a consensus rating of “Hold” and a consensus target price of $45.96.

URBN traded down $0.94 on Friday, reaching $37.04. 3,878,801 shares of the company traded hands, compared to its average volume of 2,222,983. Urban Outfitters has a one year low of $26.82 and a one year high of $52.50. The firm has a market capitalization of $4.17 billion, a price-to-earnings ratio of 22.18, a PEG ratio of 1.12 and a beta of 0.54.

Urban Outfitters (NASDAQ:URBN) last announced its quarterly earnings data on Tuesday, August 21st. The apparel retailer reported $0.84 earnings per share for the quarter, beating analysts’ consensus estimates of $0.77 by $0.07. Urban Outfitters had a net margin of 4.71% and a return on equity of 18.92%. The company had revenue of $992.50 million during the quarter, compared to analyst estimates of $980.19 million. During the same quarter last year, the business posted $0.44 EPS. The firm’s revenue for the quarter was up 13.7% on a year-over-year basis. Equities analysts predict that Urban Outfitters will post 2.67 EPS for the current year.

In related news, CEO Trish Donnelly sold 19,332 shares of the business’s stock in a transaction that occurred on Friday, August 24th. The shares were sold at an average price of $46.10, for a total transaction of $891,205.20. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 25.90% of the company’s stock.

Hedge funds and other institutional investors have recently bought and sold shares of the stock. MERIAN GLOBAL INVESTORS UK Ltd grew its position in Urban Outfitters by 59.0% during the 3rd quarter. MERIAN GLOBAL INVESTORS UK Ltd now owns 2,718,187 shares of the apparel retailer’s stock worth $111,173,000 after purchasing an additional 1,008,156 shares during the last quarter. Chicago Equity Partners LLC grew its position in Urban Outfitters by 17.6% during the 2nd quarter. Chicago Equity Partners LLC now owns 191,670 shares of the apparel retailer’s stock worth $8,539,000 after purchasing an additional 28,665 shares during the last quarter. Empowered Funds LLC purchased a new stake in Urban Outfitters during the 3rd quarter worth approximately $1,520,000. Waddell & Reed Financial Inc. purchased a new stake in Urban Outfitters during the 2nd quarter worth approximately $50,202,000. Finally, Cookson Peirce & Co. Inc. purchased a new stake in Urban Outfitters during the 3rd quarter worth approximately $965,000. Hedge funds and other institutional investors own 79.61% 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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