Urban Outfitters (NASDAQ:URBN) Shares Gap Up After Earnings Beat

Shares of Urban Outfitters, Inc. (NASDAQ:URBN) gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $68.31, but opened at $75.65. Urban Outfitters shares last traded at $76.6840, with a volume of 2,363,154 shares traded.

The apparel retailer reported $1.28 EPS for the quarter, beating analysts’ consensus estimates of $1.19 by $0.09. The company had revenue of $1.53 billion during the quarter, compared to analysts’ expectations of $1.48 billion. Urban Outfitters had a return on equity of 18.43% and a net margin of 8.15%.Urban Outfitters’s revenue for the quarter was up 12.3% on a year-over-year basis. During the same period last year, the business posted $1.10 EPS.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on URBN. Weiss Ratings restated a “buy (b)” rating on shares of Urban Outfitters in a report on Wednesday, October 8th. Citigroup raised their price target on shares of Urban Outfitters from $76.00 to $80.00 and gave the company a “neutral” rating in a research report on Wednesday. Zacks Research downgraded shares of Urban Outfitters from a “strong-buy” rating to a “hold” rating in a research note on Thursday, November 6th. UBS Group upped their price objective on Urban Outfitters from $70.00 to $80.00 and gave the stock a “neutral” rating in a research report on Wednesday. Finally, Telsey Advisory Group lifted their target price on Urban Outfitters from $80.00 to $85.00 and gave the company a “market perform” rating in a report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $85.36.

Insider Transactions at Urban Outfitters

In related news, CEO Tricia D. Smith sold 3,400 shares of the business’s stock in a transaction that occurred on Tuesday, October 7th. The stock was sold at an average price of $69.77, for a total transaction of $237,218.00. Following the completion of the sale, the chief executive officer owned 10,077 shares in the company, valued at $703,072.29. The trade was a 25.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Richard A. Hayne sold 9,333 shares of the stock in a transaction that occurred on Monday, October 13th. The shares were sold at an average price of $70.11, for a total transaction of $654,336.63. Following the completion of the transaction, the chief executive officer owned 2,430,722 shares in the company, valued at $170,417,919.42. This represents a 0.38% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 44,400 shares of company stock valued at $3,118,738. Corporate insiders own 31.60% of the company’s stock.

Institutional Investors Weigh In On Urban Outfitters

Institutional investors and hedge funds have recently bought and sold shares of the stock. Victory Capital Management Inc. boosted its stake in Urban Outfitters by 12.4% in the first quarter. Victory Capital Management Inc. now owns 16,258 shares of the apparel retailer’s stock valued at $852,000 after acquiring an additional 1,796 shares in the last quarter. Universal Beteiligungs und Servicegesellschaft mbH purchased a new stake in shares of Urban Outfitters in the 1st quarter valued at about $2,979,000. Zurcher Kantonalbank Zurich Cantonalbank boosted its position in shares of Urban Outfitters by 21.7% in the 1st quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 17,912 shares of the apparel retailer’s stock valued at $939,000 after purchasing an additional 3,191 shares during the period. Picton Mahoney Asset Management grew its stake in Urban Outfitters by 22,659.4% during the 1st quarter. Picton Mahoney Asset Management now owns 7,283 shares of the apparel retailer’s stock worth $382,000 after buying an additional 7,251 shares during the last quarter. Finally, Federated Hermes Inc. grew its stake in Urban Outfitters by 17,175.0% during the 1st quarter. Federated Hermes Inc. now owns 691 shares of the apparel retailer’s stock worth $36,000 after buying an additional 687 shares during the last quarter. 77.61% of the stock is owned by hedge funds and other institutional investors.

Urban Outfitters Stock Up 13.5%

The firm has a 50-day simple moving average of $67.38 and a 200 day simple moving average of $70.13. The company has a market cap of $6.96 billion, a price-to-earnings ratio of 15.15, a price-to-earnings-growth ratio of 1.04 and a beta of 1.28.

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.