Needham & Company LLC Upgrades Urban Outfitters (NASDAQ:URBN) to "Moderate Buy"

Key Points

• Needham & Company upgraded Urban Outfitters to “Moderate Buy,” joining a consensus rating of Moderate Buy from 16 analysts, with an average price target of $90.54.
• Urban Outfitters reported quarterly EPS of $1.72, in line with estimates, while revenue of $1.66 billion exceeded expectations and rose 10.4% year over year.
• Shares fell 0.9% to $86.57, despite strong recent performance; insiders sold 14,200 shares worth approximately $1.16 million over the past 90 days, while institutional investors own 77.61% of the stock.

Urban Outfitters (NASDAQ:URBN - Get Free Report) was upgraded by equities research analysts at Needham & Company LLC to a "moderate buy" rating in a report issued on Friday, Zacks reports.

A number of other analysts have also recently weighed in on URBN. BMO Capital Markets started coverage on Urban Outfitters in a research report on Tuesday, September 8th. They issued a "market perform" rating and a $80.00 price objective for the company. Zacks Research lowered Urban Outfitters from a "strong-buy" rating to a "hold" rating in a research report on Friday, August 14th. The Goldman Sachs Group upgraded Urban Outfitters from a "neutral" rating to a "buy" rating and increased their price target for the company from $76.00 to $93.00 in a research note on Monday, July 20th. Citigroup reiterated a "neutral" rating on shares of Urban Outfitters in a research note on Friday, August 28th. Finally, Wall Street Zen downgraded Urban Outfitters from a "buy" rating to a "hold" rating in a report on Monday, August 31st. Nine research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $90.54.

Urban Outfitters Stock Down 0.9%

Shares of Urban Outfitters stock traded down $0.83 on Friday, reaching $86.57. The stock had a trading volume of 1,286,225 shares, compared to its average volume of 1,110,594. The stock has a market capitalization of $7.42 billion, a P/E ratio of 13.51, a P/E/G ratio of 1.37 and a beta of 1.24. The company has a 50 day moving average price of $78.46 and a 200 day moving average price of $74.01. Urban Outfitters has a 1 year low of $59.53 and a 1 year high of $90.59.

Urban Outfitters (NASDAQ:URBN - Get Free Report) last posted its earnings results on Thursday, August 27th. The apparel retailer reported $1.72 EPS for the quarter, meeting analysts' consensus estimates of $1.72. The company had revenue of $1.66 billion during the quarter, compared to analysts' expectations of $1.65 billion. Urban Outfitters had a net margin of 8.79% and a return on equity of 18.64%. Urban Outfitters's revenue for the quarter was up 10.4% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.58 earnings per share. On average, analysts forecast that Urban Outfitters will post 6.20 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Harry S. Cherken, Jr. sold 5,000 shares of the firm's stock in a transaction dated Thursday, October 15th. The stock was sold at an average price of $87.06, for a total value of $435,300.00. Following the completion of the transaction, the director directly owned 494,315 shares in the company, valued at $43,035,063.90. This trade represents a 1.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Melanie Marein-Efron sold 5,700 shares of Urban Outfitters stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $80.75, for a total value of $460,275.00. Following the sale, the chief financial officer directly owned 11,323 shares of the company's stock, valued at $914,332.25. This trade represents a 33.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 14,200 shares of company stock valued at $1,161,400. 32.10% of the stock is owned by company insiders.

Institutional Investors Weigh In On Urban Outfitters

Several hedge funds have recently bought and sold shares of the stock. Assenagon Asset Management S.A. boosted its holdings in Urban Outfitters by 574.2% in the 3rd quarter. Assenagon Asset Management S.A. now owns 90,151 shares of the apparel retailer's stock worth $6,886,000 after buying an additional 76,780 shares during the last quarter. Fort Washington Investment Advisors Inc. OH increased its holdings in shares of Urban Outfitters by 14.4% during the 3rd quarter. Fort Washington Investment Advisors Inc. OH now owns 366,298 shares of the apparel retailer's stock worth $27,978,000 after buying an additional 46,118 shares during the last quarter. GAMMA Investing LLC raised its position in Urban Outfitters by 10.4% in the third quarter. GAMMA Investing LLC now owns 2,262 shares of the apparel retailer's stock valued at $173,000 after purchasing an additional 213 shares during the period. Farther Finance Advisors LLC raised its holdings in Urban Outfitters by 39.6% in the 3rd quarter. Farther Finance Advisors LLC now owns 1,167 shares of the apparel retailer's stock valued at $89,000 after buying an additional 331 shares during the period. Finally, Central Pacific Bank Trust Division lifted its holdings in shares of Urban Outfitters by 15.3% in the 3rd quarter. Central Pacific Bank Trust Division now owns 2,410 shares of the apparel retailer's stock worth $184,000 after acquiring an additional 320 shares during the last quarter. Hedge funds and other institutional investors own 77.61% of the company's stock.

Urban Outfitters Company Profile

Urban Outfitters, Inc is a lifestyle retail company that offers apparel, accessories, beauty products, home furnishings, and other lifestyle merchandise through stores and digital channels. Its brands target a range of customer groups and aesthetic preferences, from contemporary fashion and eclectic home goods to activewear and rental apparel.

The company's portfolio includes Urban Outfitters, Anthropologie, Free People, FP Movement, Terrain, and Nuuly. Urban Outfitters focuses on fashion-forward apparel, accessories, and home products; Anthropologie offers women's clothing, accessories, beauty products, and home furnishings; and Free People and FP Movement specialize in women's apparel and activewear.

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