Urban Outfitters (NASDAQ:URBN) Shares Gap Up on Strong Earnings

Urban Outfitters, Inc. (NASDAQ:URBN) gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $40.14, but opened at $45.57. Urban Outfitters shares last traded at $45.52, with a volume of 1,374,887 shares trading hands.

The apparel retailer reported $1.10 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.82 by $0.28. The business had revenue of $1.36 billion for the quarter, compared to analysts’ expectations of $1.34 billion. Urban Outfitters had a return on equity of 15.49% and a net margin of 5.83%. Urban Outfitters’s quarterly revenue was up 6.3% on a year-over-year basis. During the same period in the previous year, the business posted $0.88 earnings per share.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on URBN shares. Barclays upped their target price on shares of Urban Outfitters from $43.00 to $51.00 and gave the stock an “overweight” rating in a research report on Wednesday. Telsey Advisory Group boosted their target price on Urban Outfitters from $44.00 to $46.00 and gave the stock a “market perform” rating in a research report on Wednesday. Citigroup upgraded shares of Urban Outfitters from a “neutral” rating to a “buy” rating and upped their price objective for the company from $42.00 to $59.00 in a research report on Wednesday. BMO Capital Markets cut their price target on shares of Urban Outfitters from $42.00 to $39.00 and set a “market perform” rating on the stock in a research note on Thursday, August 22nd. Finally, Jefferies Financial Group reduced their price target on Urban Outfitters from $35.00 to $34.00 and set an “underperform” rating for the company in a research report on Thursday, August 22nd. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating and three have given a buy rating to the stock. According to MarketBeat, Urban Outfitters currently has an average rating of “Hold” and an average price target of $46.27.

Insider Transactions at Urban Outfitters

In other news, CEO Tricia D. Smith sold 11,730 shares of the company’s stock in a transaction that occurred on Friday, September 6th. The shares were sold at an average price of $35.29, for a total transaction of $413,951.70. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 31.80% of the company’s stock.

Institutional Investors Weigh In On Urban Outfitters

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Blue Trust Inc. increased its stake in shares of Urban Outfitters by 138.8% in the third quarter. Blue Trust Inc. now owns 609 shares of the apparel retailer’s stock valued at $25,000 after buying an additional 354 shares during the period. Quarry LP raised its holdings in Urban Outfitters by 1,825.0% during the second quarter. Quarry LP now owns 924 shares of the apparel retailer’s stock worth $38,000 after buying an additional 876 shares during the last quarter. Northwestern Mutual Wealth Management Co. bought a new position in Urban Outfitters in the 2nd quarter valued at about $42,000. Asset Management One Co. Ltd. purchased a new position in shares of Urban Outfitters during the third quarter valued at approximately $47,000. Finally, Meeder Asset Management Inc. bought a new stake in shares of Urban Outfitters in the 2nd quarter worth $48,000. 77.61% of the stock is owned by institutional investors.

Urban Outfitters Stock Performance

The stock has a market cap of $4.38 billion, a PE ratio of 14.20, a price-to-earnings-growth ratio of 0.95 and a beta of 1.50. The company’s 50 day simple moving average is $37.24 and its 200 day simple moving average is $40.06.

Urban Outfitters Company Profile

Urban Outfitters, Inc engages in the retail and wholesale of general consumer products. The company operates through three segments: Retail, Wholesale, and Nuuly. It operates Urban Outfitters stores, which offer women's and men's fashion apparel, activewear, intimates, footwear, accessories, home goods, electronics, and beauty products for young adults aged 18 to 28; and Anthropologie stores that provide women's apparel, accessories, intimates, shoes, and home furnishings, as well as gifts, decorative items, and beauty and wellness products for women aged 28 to 45.