Urban Outfitters (NASDAQ:URBN) Share Price Breaks Above 200 Day Moving Average - Should You Sell?

Key Points

• Urban Outfitters shares broke above their 200-day moving average, reaching $81.37 and last trading at $80.96, compared with a 200-day average of $73.13.
• Analyst sentiment is positive but mixed: eight analysts rate the stock a Buy and seven rate it a Hold, resulting in a “Moderate Buy” consensus and an average price target of $89.75.
• The company’s latest quarterly results met EPS expectations and exceeded revenue estimates, with revenue rising 10.4% year over year; however, the CEO and CFO recently sold shares, while institutional investors own 77.61% of the stock.

Shares of Urban Outfitters, Inc. (NASDAQ:URBN - Get Free Report) crossed above its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $73.13 and traded as high as $81.37. Urban Outfitters shares last traded at $80.96, with a volume of 718,253 shares traded.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the stock. UBS Group boosted their target price on shares of Urban Outfitters from $80.00 to $82.00 and gave the company a "neutral" rating in a research report on Thursday, August 27th. Morgan Stanley restated an "overweight" rating and issued a $90.00 price target on shares of Urban Outfitters in a report on Thursday, August 27th. Jefferies Financial Group lifted their price target on shares of Urban Outfitters from $72.00 to $79.00 and gave the company a "hold" rating in a research note on Wednesday, August 12th. The Goldman Sachs Group upgraded shares of Urban Outfitters from a "neutral" rating to a "buy" rating and upped their price objective for the company from $76.00 to $93.00 in a report on Monday, July 20th. Finally, Weiss Ratings raised shares of Urban Outfitters from a "buy (b-)" rating to a "buy (b)" rating in a research report on Tuesday, September 22nd. Eight analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $89.75.

Urban Outfitters Stock Performance

The business has a fifty day moving average of $77.56 and a 200-day moving average of $73.13. The company has a market capitalization of $6.94 billion, a P/E ratio of 12.63, a PEG ratio of 1.25 and a beta of 1.24.

Urban Outfitters (NASDAQ:URBN - Get Free Report) last posted its quarterly earnings results on Thursday, August 27th. The apparel retailer reported $1.72 earnings per share (EPS) for the quarter, meeting the consensus estimate of $1.72. The business had revenue of $1.66 billion during the quarter, compared to the consensus estimate 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 was up 10.4% compared to the same quarter last year. During the same quarter last year, the firm posted $1.58 EPS. Sell-side analysts anticipate that Urban Outfitters, Inc. will post 6.2 EPS for the current year.

Insider Transactions at Urban Outfitters

In related news, CEO Tricia D. Smith sold 3,500 shares of the company's stock in a transaction dated Friday, September 18th. The shares were sold at an average price of $75.95, for a total value of $265,825.00. Following the sale, the chief executive officer owned 30,112 shares in the company, valued at $2,287,006.40. This represents a 10.41% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Melanie Marein-Efron sold 5,700 shares of the company's stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $80.75, for a total transaction of $460,275.00. Following the completion of the sale, the chief financial officer owned 11,323 shares in the company, valued at $914,332.25. This represents a 33.48% decrease in their position. The disclosure for this sale is available in the SEC filing. 32.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On Urban Outfitters

Hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new stake in shares of Urban Outfitters in the second quarter worth approximately $615,160,000. Dimensional Fund Advisors LP boosted its position in shares of Urban Outfitters by 8.5% during the first quarter. Dimensional Fund Advisors LP now owns 4,313,938 shares of the apparel retailer's stock valued at $273,274,000 after buying an additional 338,622 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its position in shares of Urban Outfitters by 23.9% during the first quarter. Arrowstreet Capital Limited Partnership now owns 981,130 shares of the apparel retailer's stock valued at $62,155,000 after buying an additional 189,454 shares during the last quarter. Bank of America Corp DE bought a new stake in Urban Outfitters during the second quarter worth $33,414,000. Finally, Engineers Gate Manager LP grew its holdings in Urban Outfitters by 211.4% during the second quarter. Engineers Gate Manager LP now owns 428,227 shares of the apparel retailer's stock worth $30,344,000 after buying an additional 290,698 shares in the last quarter. Institutional investors and hedge funds own 77.61% of the company's stock.

About Urban Outfitters

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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