Urban Outfitters (NASDAQ:URBN) Shares Gap Up Following Better-Than-Expected Earnings

Urban Outfitters, Inc. (NASDAQ:URBN)’s share price gapped up prior to trading on Wednesday following a better than expected earnings announcement. 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 changing hands.

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

Analyst Ratings Changes

Several research firms have weighed in on URBN. StockNews.com upgraded Urban Outfitters from a “hold” rating to a “buy” rating in a research note on Thursday. Wells Fargo & Company increased their price target on shares of Urban Outfitters from $40.00 to $48.00 and gave the stock an “equal weight” rating in a report on Wednesday. Jefferies Financial Group decreased their price objective on shares of Urban Outfitters from $35.00 to $34.00 and set an “underperform” rating for the company in a research note on Thursday, August 22nd. Telsey Advisory Group increased their price objective on shares of Urban Outfitters from $44.00 to $46.00 and gave the stock a “market perform” rating in a research note on Wednesday. Finally, BMO Capital Markets reduced their target price on shares of Urban Outfitters from $42.00 to $39.00 and set a “market perform” rating for the company in a report on Thursday, August 22nd. One research analyst has rated the stock with a sell rating, seven have issued a hold rating and four have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $46.27.

Insiders Place Their Bets

In related news, CEO Tricia D. Smith sold 11,730 shares of Urban Outfitters stock in a transaction on Friday, September 6th. The shares were sold at an average price of $35.29, for a total value of $413,951.70. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Insiders own 31.80% of the company’s stock.

Institutional Trading of Urban Outfitters

Several institutional investors have recently modified their holdings of the stock. Lazard Asset Management LLC boosted its stake in shares of Urban Outfitters by 96.6% in the first quarter. Lazard Asset Management LLC now owns 6,815 shares of the apparel retailer’s stock worth $295,000 after acquiring an additional 3,348 shares during the last quarter. Price T Rowe Associates Inc. MD grew its holdings in shares of Urban Outfitters by 7.5% during the first quarter. Price T Rowe Associates Inc. MD now owns 33,202 shares of the apparel retailer’s stock worth $1,442,000 after buying an additional 2,307 shares in the last quarter. Tidal Investments LLC grew its holdings in shares of Urban Outfitters by 5.8% during the first quarter. Tidal Investments LLC now owns 18,575 shares of the apparel retailer’s stock worth $807,000 after buying an additional 1,016 shares in the last quarter. Harbor Capital Advisors Inc. raised its position in shares of Urban Outfitters by 287.4% in the second quarter. Harbor Capital Advisors Inc. now owns 46,300 shares of the apparel retailer’s stock valued at $1,901,000 after buying an additional 34,350 shares during the last quarter. Finally, CWM LLC boosted its position in Urban Outfitters by 165.6% during the second quarter. CWM LLC now owns 2,085 shares of the apparel retailer’s stock worth $86,000 after acquiring an additional 1,300 shares during the last quarter. Institutional investors and hedge funds own 77.61% of the company’s stock.

Urban Outfitters Stock Performance

The company has a market cap of $4.38 billion, a PE ratio of 13.61, a PEG ratio of 0.95 and a beta of 1.50. The firm’s 50 day moving average is $37.44 and its 200-day moving average is $40.11.

About Urban Outfitters

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.