Urban Outfitters (URBN) Downgraded by Zacks Investment Research

Zacks Investment Research lowered shares of Urban Outfitters (NASDAQ:URBN) from a strong-buy rating to a hold rating in a research note released on Saturday morning.

According to Zacks, “Shares of Urban Outfitters, which have outperformed the industry in the past three months is likely to continue the bull run. We are upbeat on the company’s performance based on better-than-expected third-quarter fiscal 2018 results. The fact that its brands are well placed for holiday season compared with the prior year further bolsters our optimism. Moreover, the big take away from the third quarter was, that it’s all three brands reported rise in comps for the first time in two years. Further, new store openings, increase in direct penetration, growing wholesale operations and merchandising improvements bode well for the long term. Management is also making all possible efforts to enhance the performance of brands through store refurbishment and by bringing in more compelling assortments. However, management’s remark over gross margin, which is anticipated to decline year over year in the fourth quarter is a concern.”

Other equities analysts also recently issued research reports about the stock. Jefferies Group lifted their target price on shares of Urban Outfitters to $34.00 and gave the stock a buy rating in a research note on Tuesday, November 21st. Robert W. Baird set a $27.00 target price on shares of Urban Outfitters and gave the stock a buy rating in a research note on Saturday, November 18th. Buckingham Research lifted their target price on shares of Urban Outfitters from $25.00 to $30.00 and gave the stock a buy rating in a research note on Tuesday, November 14th. SunTrust Banks set a $35.00 target price on shares of Urban Outfitters and gave the stock a buy rating in a research note on Monday, December 11th. Finally, KeyCorp reissued a buy rating on shares of Urban Outfitters in a research note on Friday, December 15th. Three analysts have rated the stock with a sell rating, twenty-one have assigned a hold rating and eleven have issued a buy rating to the company. The stock presently has a consensus rating of Hold and an average target price of $25.63.

Urban Outfitters (URBN) traded down $0.09 during mid-day trading on Friday, hitting $34.26. 3,249,313 shares of the stock traded hands, compared to its average volume of 2,438,370. The company has a market capitalization of $3,708.58, a P/E ratio of 22.84, a P/E/G ratio of 1.83 and a beta of 0.73. Urban Outfitters has a 12-month low of $16.19 and a 12-month high of $36.10.

Urban Outfitters (NASDAQ:URBN) last released its quarterly earnings results on Monday, November 20th. The apparel retailer reported $0.41 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.33 by $0.08. The firm had revenue of $892.77 million during the quarter, compared to the consensus estimate of $860.64 million. Urban Outfitters had a net margin of 4.81% and a return on equity of 13.34%. The company’s revenue for the quarter was up 3.5% on a year-over-year basis. During the same quarter last year, the firm earned $0.40 earnings per share. equities research analysts anticipate that Urban Outfitters will post 1.56 earnings per share for the current year.

A number of large investors have recently bought and sold shares of URBN. Sun Life Financial INC acquired a new stake in Urban Outfitters in the second quarter worth $151,000. Pacad Investment Ltd. acquired a new stake in Urban Outfitters in the second quarter worth $191,000. BT Investment Management Ltd acquired a new stake in Urban Outfitters in the second quarter worth $196,000. Oppenheimer Asset Management Inc. grew its holdings in Urban Outfitters by 0.4% in the second quarter. Oppenheimer Asset Management Inc. now owns 10,691 shares of the apparel retailer’s stock worth $198,000 after purchasing an additional 43 shares during the period. Finally, Invictus RG acquired a new stake in Urban Outfitters in the third quarter worth $241,000. Institutional investors and hedge funds own 86.24% of the company’s stock.

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About Urban Outfitters

Urban Outfitters, Inc is a lifestyle specialty retail company. The Company operates through two segments: Retail and Wholesale. The Company’s Retail segment consists of its Urban Outfitters, Anthropologie, Free People, Terrain and Bhldn brands, whose merchandise is sold to its customers through retail stores, Websites, mobile applications, catalogs and customer contact centers.

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