Urban Outfitters (URBN) Lifted to “Hold” at Zacks Investment Research
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.”
Other equities analysts have also issued reports about the company. BidaskClub raised Urban Outfitters from a sell rating to a hold rating in a research note on Wednesday, April 10th. Wedbush boosted their price target on Urban Outfitters from $30.00 to $35.00 and gave the company a hold rating in a research note on Friday, April 5th. DA Davidson raised Urban Outfitters from a neutral rating to a buy rating and boosted their price target for the company from $30.00 to $36.00 in a research note on Tuesday, April 2nd. ValuEngine lowered Urban Outfitters from a hold rating to a sell rating in a research note on Monday, April 1st. Finally, MKM Partners dropped their price target on Urban Outfitters to $31.00 and set a neutral rating on the stock in a research note on Wednesday, March 6th. Two equities research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and eight have assigned a buy rating to the company. The company presently has a consensus rating of Hold and an average target price of $40.59.
Urban Outfitters (NASDAQ:URBN) last announced its earnings results on Tuesday, March 5th. The apparel retailer reported $0.83 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.78 by $0.05. Urban Outfitters had a return on equity of 21.03% and a net margin of 7.54%. The business had revenue of $1.13 billion for the quarter, compared to analysts’ expectations of $1.13 billion. During the same period in the prior year, the business posted $0.62 earnings per share. On average, equities analysts predict that Urban Outfitters will post 2.61 EPS for the current fiscal year.
In other news, CFO Frank Conforti sold 22,937 shares of the company’s stock in a transaction that occurred on Friday, March 8th. The stock was sold at an average price of $29.30, for a total transaction of $672,054.10. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, COO Calvin Hollinger sold 23,813 shares of the company’s stock in a transaction that occurred on Friday, March 8th. The stock was sold at an average price of $29.13, for a total value of $693,672.69. The disclosure for this sale can be found here. Insiders have sold 104,200 shares of company stock worth $3,237,851 over the last ninety days. 25.90% of the stock is owned by insiders.
Several large investors have recently modified their holdings of the company. Retirement Systems of Alabama raised its position in shares of Urban Outfitters by 0.4% during the first quarter. Retirement Systems of Alabama now owns 98,085 shares of the apparel retailer’s stock worth $2,907,000 after purchasing an additional 379 shares during the period. First Citizens Bank & Trust Co. purchased a new stake in Urban Outfitters in the 1st quarter valued at $356,000. Peregrine Capital Management LLC raised its position in Urban Outfitters by 120,393.6% in the 1st quarter. Peregrine Capital Management LLC now owns 300,029 shares of the apparel retailer’s stock valued at $8,893,000 after buying an additional 299,780 shares during the last quarter. Dalton Greiner Hartman Maher & Co. purchased a new stake in Urban Outfitters in the 1st quarter valued at $7,276,000. Finally, MUFG Securities EMEA plc purchased a new stake in Urban Outfitters in the 4th quarter valued at $8,234,000. 79.86% of the stock is currently owned by institutional investors.
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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