Urban Outfitters (NASDAQ:URBN) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Tuesday.

According to Zacks, “Shares of Urban Outfitters have lagged the industry in the past six months, courtesy of elevated SG&A expenses. Going ahead, SG&A is expected to rise further during the final quarter owing to higher digital marketing investments, incentive-based compensation and increased store payroll may strain margins to an extent. Fashion obsolescence remains a concern for its business model. However, the company posted robust 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. 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.”

URBN has been the topic of a number of other research reports. Telsey Advisory Group reaffirmed a “market perform” rating and set a $35.00 target price (down previously from $36.00) on shares of Urban Outfitters in a report on Friday, February 8th. Robert W. Baird reissued a “hold” rating and set a $47.00 target price on shares of Urban Outfitters in a research note on Tuesday, November 20th. BidaskClub cut Urban Outfitters from a “hold” rating to a “sell” rating in a research note on Tuesday, November 20th. MKM Partners lowered their target price on Urban Outfitters from $47.00 to $43.00 and set a “neutral” rating on the stock in a research report on Tuesday, November 20th. Finally, Jefferies Financial Group set a $58.00 target price on Urban Outfitters and gave the stock a “buy” rating in a report on Tuesday, November 20th. Four investment analysts have rated the stock with a sell rating, twelve have assigned a hold rating and eight have assigned a buy rating to the company. Urban Outfitters has an average rating of “Hold” and an average target price of $43.81.

NASDAQ URBN opened at $30.80 on Tuesday. Urban Outfitters has a 12 month low of $30.37 and a 12 month high of $52.50. The company has a market cap of $3.35 billion, a price-to-earnings ratio of 18.44, a PEG ratio of 0.97 and a beta of 0.58.

Urban Outfitters (NASDAQ:URBN) last announced its quarterly earnings results on Monday, November 19th. The apparel retailer reported $0.70 EPS for the quarter, topping analysts’ consensus estimates of $0.63 by $0.07. The firm had revenue of $973.50 million during the quarter, compared to analysts’ expectations of $967.82 million. Urban Outfitters had a net margin of 5.44% and a return on equity of 20.65%. The company’s revenue for the quarter was up 9.0% compared to the same quarter last year. During the same quarter last year, the company earned $0.41 earnings per share. On average, equities analysts forecast that Urban Outfitters will post 2.71 earnings per share for the current year.

Several institutional investors and hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. boosted its holdings in shares of Urban Outfitters by 5.0% during the 3rd quarter. Vanguard Group Inc. now owns 8,466,147 shares of the apparel retailer’s stock valued at $346,266,000 after acquiring an additional 406,691 shares in the last quarter. Vanguard Group Inc lifted its position in shares of Urban Outfitters by 5.0% during the 3rd quarter. Vanguard Group Inc now owns 8,466,147 shares of the apparel retailer’s stock worth $346,266,000 after buying an additional 406,691 shares during the last quarter. FMR LLC increased its position in Urban Outfitters by 79.7% during the 2nd quarter. FMR LLC now owns 7,872,878 shares of the apparel retailer’s stock worth $350,737,000 after purchasing an additional 3,492,613 shares in the last quarter. AQR Capital Management LLC increased its stake in Urban Outfitters by 547.6% in the 3rd quarter. AQR Capital Management LLC now owns 4,487,410 shares of the apparel retailer’s stock worth $183,535,000 after purchasing an additional 3,794,451 shares in the last quarter. Finally, Massachusetts Financial Services Co. MA boosted its stake in Urban Outfitters by 1.5% in the 4th quarter. Massachusetts Financial Services Co. MA now owns 3,403,910 shares of the apparel retailer’s stock valued at $113,009,000 after buying an additional 48,747 shares in the last quarter. 82.25% of the stock is owned by institutional investors.

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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