Urban Outfitters, Inc. (NASDAQ:URBN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Monday.

According to Zacks, “Urban Outfitter shares have taken a sharp U-turn following better-than-expected second-quarter fiscal 2018 results for the first time in trailing four quarters. The bullish run in the stock price helped it to outpace the industry in the past three months. New store openings, increase in direct penetration, growing wholesale operations, technology advancements 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, along with top and bottom line, comparable retail segment net sales also fell for the reported quarter. Moreover, management’s remark over gross margin, which is anticipated to decline year over year in the third quarter due to rise in delivery as well as de-leverage in store occupancy expenditures is a major concern for investors.”

Several other research analysts also recently weighed in on the stock. BMO Capital Markets set a $20.00 target price on shares of Urban Outfitters and gave the stock a “hold” rating in a report on Monday, September 11th. Royal Bank Of Canada set a $17.00 target price on shares of Urban Outfitters and gave the stock a “hold” rating in a report on Monday, July 17th. BidaskClub raised shares of Urban Outfitters from a “sell” rating to a “hold” rating in a report on Saturday, August 26th. Deutsche Bank AG downgraded shares of Urban Outfitters from a “hold” rating to a “sell” rating and dropped their target price for the stock from $23.00 to $19.00 in a report on Tuesday, October 3rd. Finally, FBR & Co dropped their target price on shares of Urban Outfitters from $24.00 to $16.00 and set a “neutral” rating for the company in a report on Tuesday, August 15th. Three investment analysts have rated the stock with a sell rating, twenty-one have issued a hold rating and seven have issued a buy rating to the stock. Urban Outfitters has a consensus rating of “Hold” and a consensus target price of $22.47.

Urban Outfitters (NASDAQ URBN) traded up $0.30 during midday trading on Monday, reaching $25.02. 628,534 shares of the company traded hands, compared to its average volume of 2,219,310. Urban Outfitters has a 52-week low of $16.19 and a 52-week high of $40.80. The stock has a market capitalization of $2,750.86, a price-to-earnings ratio of 16.26, a price-to-earnings-growth ratio of 1.49 and a beta of 0.62.

Urban Outfitters (NASDAQ:URBN) last issued its quarterly earnings data on Tuesday, August 15th. The apparel retailer reported $0.44 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.37 by $0.07. The firm had revenue of $873.00 million during the quarter, compared to the consensus estimate of $860.80 million. Urban Outfitters had a net margin of 4.92% and a return on equity of 13.61%. The company’s revenue for the quarter was down 2.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.66 EPS. equities analysts expect that Urban Outfitters will post 1.45 EPS for the current year.

Urban Outfitters declared that its board has initiated a share buyback program on Thursday, August 24th that authorizes the company to repurchase $20.00 million in shares. This repurchase authorization authorizes the apparel retailer to buy up to 0.9% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s management believes its stock is undervalued.

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Hedge funds and other institutional investors have recently bought and sold shares of the business. Cornerstone Capital Management Holdings LLC. raised its holdings in shares of Urban Outfitters by 39.8% in the second quarter. Cornerstone Capital Management Holdings LLC. now owns 30,900 shares of the apparel retailer’s stock worth $572,000 after buying an additional 8,800 shares during the last quarter. Bank of New York Mellon Corp raised its holdings in shares of Urban Outfitters by 0.3% during the second quarter. Bank of New York Mellon Corp now owns 3,926,812 shares of the apparel retailer’s stock worth $72,803,000 after purchasing an additional 10,249 shares during the last quarter. Bank of Nova Scotia purchased a new position in shares of Urban Outfitters during the first quarter worth $251,000. First Trust Advisors LP raised its holdings in shares of Urban Outfitters by 2.9% during the second quarter. First Trust Advisors LP now owns 370,822 shares of the apparel retailer’s stock worth $6,875,000 after purchasing an additional 10,503 shares during the last quarter. Finally, Russell Investments Group Ltd. raised its holdings in shares of Urban Outfitters by 11.0% during the second quarter. Russell Investments Group Ltd. now owns 138,911 shares of the apparel retailer’s stock worth $2,577,000 after purchasing an additional 13,795 shares during the last quarter. 87.22% of the stock is owned by institutional investors and hedge funds.

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.

Analyst Recommendations for Urban Outfitters (NASDAQ:URBN)

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