According to Zacks, “Shares of Urban Outfitters have underperformed the industry in the past three months. The stock came under pressure following the top-line miss during the fourth quarter of fiscal 2019 and management’s remark that the company commenced fiscal 2020 with softer-than-expected sales. The company anticipates first-quarter fiscal 2020 comps in the range of flat to down low-single-digits in the Retail segment. Although comparable retail segment net sales rose for the sixth quarter in row during the fourth quarter, the rate of growth has decelerated. Based on comps projection, the company expects gross margin to contract in the first quarter. Nevertheless, 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.”
Several other research analysts also recently weighed in on the company. ValuEngine downgraded Urban Outfitters from a hold rating to a sell rating in a research note on Saturday, February 2nd. Morgan Stanley upgraded Urban Outfitters from an equal weight rating to an overweight rating and set a $32.74 price target for the company in a research note on Wednesday, January 9th. Deutsche Bank set a $33.00 price target on Urban Outfitters and gave the stock a hold rating in a research note on Friday, February 8th. Telsey Advisory Group reiterated a market perform rating and set a $37.00 price target (down previously from $42.00) on shares of Urban Outfitters in a research note on Friday, January 11th. Finally, Royal Bank of Canada cut their price target on Urban Outfitters from $35.00 to $29.00 and set a market perform rating for the company in a research note on Wednesday, March 6th. Two investment analysts have rated the stock with a sell rating, twelve have given a hold rating and eight have issued a buy rating to the company’s stock. Urban Outfitters has an average rating of Hold and an average price target of $40.59.
URBN stock opened at $31.52 on Friday. The firm has a market cap of $3.26 billion, a PE ratio of 11.46, a PEG ratio of 1.11 and a beta of 0.54. Urban Outfitters has a fifty-two week low of $27.60 and a fifty-two week high of $52.50.
Urban Outfitters (NASDAQ:URBN) last posted its quarterly earnings results on Tuesday, March 5th. The apparel retailer reported $0.83 earnings per share for the quarter, topping the consensus estimate of $0.78 by $0.05. The company had revenue of $1.13 billion during the quarter, compared to the consensus estimate of $1.13 billion. Urban Outfitters had a return on equity of 21.03% and a net margin of 7.54%. During the same quarter in the prior year, the company earned $0.62 EPS. On average, research analysts forecast that Urban Outfitters will post 2.61 earnings per share for the current fiscal year.
In related news, Director Edward N. Antoian sold 18,006 shares of the stock in a transaction dated Wednesday, April 10th. The stock was sold at an average price of $33.23, for a total transaction of $598,339.38. Following the sale, the director now owns 20,000 shares of the company’s stock, valued at approximately $664,600. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Trish Donnelly sold 9,144 shares of the stock in a transaction dated Friday, April 5th. The stock was sold at an average price of $34.00, for a total value of $310,896.00. Following the sale, the chief executive officer now directly owns 10,295 shares in the company, valued at approximately $350,030. The disclosure for this sale can be found here. Insiders have sold a total of 104,200 shares of company stock worth $3,237,851 in the last three months. 25.90% of the stock is currently owned by insiders.
Several large investors have recently added to or reduced their stakes in URBN. Oregon Public Employees Retirement Fund raised its holdings in shares of Urban Outfitters by 3,059.9% in the 4th quarter. Oregon Public Employees Retirement Fund now owns 1,003,171 shares of the apparel retailer’s stock valued at $30,000 after acquiring an additional 971,424 shares in the last quarter. Meeder Asset Management Inc. purchased a new stake in shares of Urban Outfitters in the 4th quarter valued at about $31,000. Bessemer Group Inc. raised its holdings in shares of Urban Outfitters by 105.5% in the 4th quarter. Bessemer Group Inc. now owns 972 shares of the apparel retailer’s stock valued at $32,000 after acquiring an additional 499 shares in the last quarter. Pearl River Capital LLC purchased a new stake in shares of Urban Outfitters in the 4th quarter valued at about $40,000. Finally, Huntington National Bank raised its holdings in shares of Urban Outfitters by 42.7% in the 4th quarter. Huntington National Bank now owns 1,233 shares of the apparel retailer’s stock valued at $41,000 after acquiring an additional 369 shares in the last quarter. 79.86% of the stock is currently owned by hedge funds and other institutional investors.
Urban Outfitters Company Profile
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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