Capital World Investors Takes $60.80 Million Position in Urban Outfitters, Inc. $URBN

Key Points

• Capital World Investors established a new position in Urban Outfitters by buying 851,108 shares (~$60.8 million) in the quarter, representing about 0.95% ownership.
• Significant insider selling occurred last quarter—insiders sold 473,517 shares worth roughly $35.6 million (including sales by CEO Richard Hayne and Margaret Hayne), leaving insiders with about 31.6% ownership.
• Urban Outfitters beat quarterly expectations with EPS of $1.43 and revenue of $1.80 billion (up 10.1% YoY); analysts are split (consensus "Hold") with a $86.25 target and the stock trades at a PE of 12.57.

Capital World Investors bought a new stake in shares of Urban Outfitters, Inc. (NASDAQ:URBN - Free Report) during the 3rd quarter, according to the company in its most recent 13F filing with the SEC. The fund bought 851,108 shares of the apparel retailer's stock, valued at approximately $60,795,000. Capital World Investors owned approximately 0.95% of Urban Outfitters at the end of the most recent quarter.

Other large investors have also recently added to or reduced their stakes in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in Urban Outfitters by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 37,728 shares of the apparel retailer's stock valued at $1,977,000 after purchasing an additional 1,653 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of Urban Outfitters by 10.5% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 142,668 shares of the apparel retailer's stock worth $7,476,000 after buying an additional 13,554 shares during the period. Bank of Montreal Can grew its stake in shares of Urban Outfitters by 134.9% in the second quarter. Bank of Montreal Can now owns 20,709 shares of the apparel retailer's stock valued at $1,502,000 after buying an additional 11,894 shares in the last quarter. Bank of New York Mellon Corp raised its holdings in shares of Urban Outfitters by 1.5% during the 2nd quarter. Bank of New York Mellon Corp now owns 454,613 shares of the apparel retailer's stock valued at $32,978,000 after buying an additional 6,586 shares during the period. Finally, Savant Capital LLC acquired a new position in Urban Outfitters during the 2nd quarter worth approximately $632,000. 77.61% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other Urban Outfitters news, insider Margaret Hayne sold 9,333 shares of the firm's stock in a transaction dated Friday, February 20th. The shares were sold at an average price of $70.50, for a total value of $657,976.50. Following the transaction, the insider owned 1,933,859 shares of the company's stock, valued at $136,337,059.50. This trade represents a 0.48% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Richard A. Hayne sold 10,667 shares of Urban Outfitters stock in a transaction that occurred on Friday, February 20th. The shares were sold at an average price of $70.50, for a total value of $752,023.50. Following the completion of the transaction, the chief executive officer owned 17,449,385 shares of the company's stock, valued at approximately $1,230,181,642.50. The trade was a 0.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 473,517 shares of company stock worth $35,562,730. 31.60% of the stock is owned by company insiders.

Urban Outfitters Price Performance

Urban Outfitters stock opened at $63.75 on Friday. Urban Outfitters, Inc. has a 12 month low of $41.89 and a 12 month high of $84.35. The company has a fifty day moving average price of $70.18 and a two-hundred day moving average price of $70.78. The company has a market cap of $5.72 billion, a PE ratio of 12.57, a P/E/G ratio of 1.25 and a beta of 1.22.

Urban Outfitters (NASDAQ:URBN - Get Free Report) last issued its earnings results on Wednesday, February 25th. The apparel retailer reported $1.43 earnings per share for the quarter, topping analysts' consensus estimates of $1.24 by $0.19. Urban Outfitters had a net margin of 7.54% and a return on equity of 18.96%. The company had revenue of $1.80 billion for the quarter, compared to analysts' expectations of $1.79 billion. During the same period in the prior year, the company earned $1.04 earnings per share. The firm's revenue was up 10.1% compared to the same quarter last year. Equities research analysts anticipate that Urban Outfitters, Inc. will post 3.91 earnings per share for the current year.

Wall Street Analysts Forecast Growth

URBN has been the subject of a number of analyst reports. UBS Group restated a "neutral" rating on shares of Urban Outfitters in a report on Tuesday, January 13th. Barclays lifted their price objective on shares of Urban Outfitters from $98.00 to $102.00 and gave the company an "overweight" rating in a research note on Friday, January 16th. Deutsche Bank Aktiengesellschaft restated a "buy" rating on shares of Urban Outfitters in a research note on Wednesday, November 26th. Morgan Stanley raised their price target on shares of Urban Outfitters from $85.00 to $91.00 and gave the company an "overweight" rating in a report on Wednesday, November 26th. Finally, JPMorgan Chase & Co. dropped their price target on shares of Urban Outfitters from $96.00 to $94.00 and set an "overweight" rating on the stock in a research note on Tuesday, January 20th. Eight equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Urban Outfitters has an average rating of "Hold" and a consensus target price of $86.25.

Urban Outfitters Company Profile

Urban Outfitters, Inc is a global lifestyle retailer headquartered in Philadelphia, Pennsylvania. Established in 1970 by Richard Hayne, Scott Belair and Judy Wicks, the company began as a single store catering to college students in the city's historic Old City neighborhood. Over the decades, Urban Outfitters has expanded its reach and diversified its portfolio to include multiple retail concepts addressing distinct customer segments.

The company operates through several well-known brands, each offering a curated selection of apparel, footwear, accessories and home goods.

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