Zacks Investment Research lowered shares of Urban Outfitters (NASDAQ:URBN) from a buy rating to a hold rating in a report released on Monday.

According to Zacks, “Shares of Urban Outfitters have surged and outpaced the industry in a year, courtesy of positive earnings and sales surprise streak. We are upbeat on the company’s third-quarter fiscal 2019 performance, wherein both the top and bottom lines grew year over year and also beat the consensus mark for the sixth successive time. Notably, comparable retail segment net sales increased for the fifth quarter in row, while all the three brands registered comps growth. We believe new store openings, increased digital penetration, merchandising improvements and international expansion bode well. Management is also making efforts to enhance the performance of brands through store refurbishment and by bringing in more compelling assortments. However, a likely increase in SG&A expenses during the final quarter owing to higher digital marketing investments, incentive-based compensation and increased store payroll may strain margins to an extent.”

A number of other brokerages also recently weighed in on URBN. Nomura raised their price objective on Urban Outfitters from $40.00 to $43.00 and gave the company a neutral rating in a research report on Wednesday, August 22nd. Deutsche Bank raised their price objective on Urban Outfitters from $35.00 to $39.00 and gave the company a sell rating in a research report on Wednesday, August 22nd. Jefferies Financial Group set a $58.00 price objective on Urban Outfitters and gave the company a buy rating in a research report on Wednesday, August 22nd. Loop Capital set a $55.00 price objective on Urban Outfitters and gave the company a buy rating in a research report on Monday, August 13th. Finally, BidaskClub raised Urban Outfitters from a hold rating to a buy rating in a research report on Saturday, August 11th. Three equities research analysts have rated the stock with a sell rating, twelve have given a hold rating and nine have given a buy rating to the company. The stock presently has a consensus rating of Hold and an average target price of $45.32.

Shares of URBN stock opened at $37.84 on Monday. Urban Outfitters has a 1-year low of $31.20 and a 1-year high of $52.50. The stock has a market cap of $4.09 billion, a P/E ratio of 22.66, a P/E/G ratio of 1.23 and a beta of 0.52.

Urban Outfitters (NASDAQ:URBN) last issued its quarterly earnings data on Monday, November 19th. The apparel retailer reported $0.70 earnings per share for the quarter, beating analysts’ consensus estimates of $0.63 by $0.07. Urban Outfitters had a return on equity of 20.65% and a net margin of 5.44%. The company had revenue of $973.50 million for the quarter, compared to the consensus estimate of $967.82 million. During the same quarter last year, the company earned $0.41 earnings per share. The firm’s revenue for the quarter was up 9.0% compared to the same quarter last year. On average, equities analysts expect that Urban Outfitters will post 2.73 EPS for the current year.

A number of institutional investors have recently added to or reduced their stakes in URBN. Allianz Asset Management GmbH purchased a new stake in Urban Outfitters in the first quarter valued at about $265,000. Bank of Montreal Can raised its stake in Urban Outfitters by 86.4% in the second quarter. Bank of Montreal Can now owns 16,562 shares of the apparel retailer’s stock valued at $738,000 after buying an additional 7,675 shares during the last quarter. BNP Paribas Arbitrage SA raised its stake in Urban Outfitters by 196.8% in the second quarter. BNP Paribas Arbitrage SA now owns 16,085 shares of the apparel retailer’s stock valued at $717,000 after buying an additional 10,666 shares during the last quarter. Aperio Group LLC raised its stake in Urban Outfitters by 8.4% in the second quarter. Aperio Group LLC now owns 36,232 shares of the apparel retailer’s stock valued at $1,614,000 after buying an additional 2,803 shares during the last quarter. Finally, Smith Asset Management Group LP purchased a new stake in Urban Outfitters in the second quarter valued at about $25,925,000. Institutional investors own 81.24% of the company’s stock.

Urban Outfitters Company Profile

Urban Outfitters, Inc, a lifestyle products and services company, engages in the retail and wholesale of general consumer products. The company retails women's and men's fashion apparel, activewear, intimates, footwear, accessories, home goods, electronics, and beauty products for young adults aged 18 to 28 under the Urban Outfitters brand; and women's casual apparel and accessories, intimates, shoes, and home furnishings, as well as gifts, decorative items, and beauty products for women aged 28 to 45 under the Anthropologie brand.

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