Urban Outfitters (NASDAQ:URBN) Sees Strong Trading Volume on Earnings Beat

Key Points

• Urban Outfitters reported earnings of $1.58 per share, surpassing analysts' expectations of $1.44 by $0.14, and achieved revenue of $1.50 billion for the quarter, exceeding estimates of $1.48 billion.
• The company's shares experienced increased trading volume of 2.14 million on the day of the earnings announcement, reflecting a 1% rise from the previous session.
• Analysts have updated their ratings, with Robert W. Baird upgrading Urban Outfitters to an "outperform" rating and raising its price target to $90.00, while the stock holds a consensus rating of "Hold" with an average price target of $78.00.

Urban Outfitters, Inc. (NASDAQ:URBN - Get Free Report) shares saw strong trading volume on Thursday following a stronger than expected earnings report. 2,138,999 shares were traded during mid-day trading, an increase of 1% from the previous session's volume of 2,110,969 shares.The stock last traded at $72.64 and had previously closed at $78.01.

The apparel retailer reported $1.58 earnings per share for the quarter, beating analysts' consensus estimates of $1.44 by $0.14. Urban Outfitters had a return on equity of 17.98% and a net margin of 7.91%.The company had revenue of $1.50 billion during the quarter, compared to analyst estimates of $1.48 billion. During the same quarter last year, the company earned $1.24 EPS. The firm's revenue for the quarter was up 11.3% on a year-over-year basis.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on the company. Robert W. Baird raised Urban Outfitters from a "neutral" rating to an "outperform" rating and raised their price objective for the company from $75.00 to $90.00 in a research report on Wednesday, June 11th. Baird R W upgraded Urban Outfitters from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, June 11th. JPMorgan Chase & Co. increased their target price on Urban Outfitters from $78.00 to $88.00 and gave the company an "overweight" rating in a research note on Monday, July 28th. Barclays increased their target price on Urban Outfitters from $59.00 to $73.00 and gave the company an "overweight" rating in a research note on Tuesday, May 20th. Finally, UBS Group increased their target price on Urban Outfitters from $75.00 to $78.00 and gave the company a "neutral" rating in a research note on Tuesday, August 19th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $78.00.

Insiders Place Their Bets

In related news, CEO Tricia D. Smith sold 4,500 shares of Urban Outfitters stock in a transaction on Wednesday, June 11th. The stock was sold at an average price of $70.52, for a total transaction of $317,340.00. Following the transaction, the chief executive officer directly owned 13,477 shares in the company, valued at approximately $950,398.04. The trade was a 25.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 31.60% of the company's stock.

Hedge Funds Weigh In On Urban Outfitters

Institutional investors and hedge funds have recently bought and sold shares of the stock. Orion Porfolio Solutions LLC lifted its position in shares of Urban Outfitters by 27.5% in the second quarter. Orion Porfolio Solutions LLC now owns 22,953 shares of the apparel retailer's stock valued at $1,665,000 after acquiring an additional 4,956 shares in the last quarter. Thrivent Financial for Lutherans lifted its position in shares of Urban Outfitters by 7.8% in the second quarter. Thrivent Financial for Lutherans now owns 44,581 shares of the apparel retailer's stock valued at $3,234,000 after acquiring an additional 3,236 shares in the last quarter. Advisory Services Network LLC purchased a new position in shares of Urban Outfitters in the second quarter valued at about $368,000. State of Wyoming lifted its position in shares of Urban Outfitters by 105.7% in the second quarter. State of Wyoming now owns 6,808 shares of the apparel retailer's stock valued at $494,000 after acquiring an additional 3,499 shares in the last quarter. Finally, Geneos Wealth Management Inc. lifted its position in shares of Urban Outfitters by 282.2% in the second quarter. Geneos Wealth Management Inc. now owns 600 shares of the apparel retailer's stock valued at $44,000 after acquiring an additional 443 shares in the last quarter. 77.61% of the stock is currently owned by hedge funds and other institutional investors.

Urban Outfitters Price Performance

The company has a 50-day moving average price of $74.14 and a 200 day moving average price of $62.72. The firm has a market capitalization of $6.53 billion, a PE ratio of 15.15, a P/E/G ratio of 1.32 and a beta of 1.44.

About Urban Outfitters

Urban Outfitters, Inc engages in the retail and wholesale of general consumer products. The company operates through three segments: Retail, Wholesale, and Nuuly. It operates Urban Outfitters stores, which offer women's and men's fashion apparel, activewear, intimates, footwear, accessories, home goods, electronics, and beauty products for young adults aged 18 to 28; and Anthropologie stores that provide women's apparel, accessories, intimates, shoes, and home furnishings, as well as gifts, decorative items, and beauty and wellness products for women aged 28 to 45.

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