Urban Outfitters (NASDAQ:URBN) Shares Gap Up - Here's What Happened

Key Points

• Urban Outfitters shares gapped up at the open, rising from a previous close of $72.98 to $76.00 before trading around $75.31, a move of about 3.9%.
• Several analysts turned more bullish on the stock, including Goldman Sachs upgrading URBN to buy and lifting its price target to $93.00; the consensus target now stands at $87.91.
• The company recently beat earnings expectations, posting $1.30 EPS versus the $1.12 estimate and revenue of $1.48 billion, while quarterly revenue grew 11.4% year over year.

Urban Outfitters, Inc. (NASDAQ:URBN - Get Free Report) gapped up before the market opened on Monday . The stock had previously closed at $72.98, but opened at $76.00. Urban Outfitters shares last traded at $75.3110, with a volume of 127,475 shares traded.

Analysts Set New Price Targets

URBN has been the topic of a number of research analyst reports. Zacks Research raised Urban Outfitters from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, July 7th. The Goldman Sachs Group raised Urban Outfitters from a "neutral" rating to a "buy" rating and lifted their price target for the stock from $76.00 to $93.00 in a research note on Monday. Bank of America lifted their price target on Urban Outfitters from $85.00 to $90.00 and gave the stock a "buy" rating in a research note on Thursday, May 21st. Jefferies Financial Group reiterated a "hold" rating and issued a $72.00 price objective on shares of Urban Outfitters in a report on Thursday, May 21st. Finally, Morgan Stanley reiterated an "overweight" rating and set a $89.00 price objective on shares of Urban Outfitters in a research report on Monday, July 6th. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $87.91.

Urban Outfitters Stock Up 3.9%

The stock's fifty day moving average price is $71.99 and its two-hundred day moving average price is $70.18. The company has a market capitalization of $6.49 billion, a PE ratio of 14.56, a price-to-earnings-growth ratio of 1.35 and a beta of 1.22.

Urban Outfitters (NASDAQ:URBN - Get Free Report) last posted its earnings results on Thursday, May 21st. The apparel retailer reported $1.30 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.12 by $0.18. The company had revenue of $1.48 billion for the quarter, compared to analysts' expectations of $1.46 billion. Urban Outfitters had a return on equity of 18.92% and a net margin of 7.48%.Urban Outfitters's quarterly revenue was up 11.4% on a year-over-year basis. During the same period last year, the firm earned $1.16 earnings per share. On average, equities research analysts forecast that Urban Outfitters, Inc. will post 6.13 EPS for the current year.

Insider Buying and Selling

In related news, insider Azeez Hayne sold 8,733 shares of the company's stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $73.18, for a total transaction of $639,080.94. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Melanie Marein-Efron sold 5,036 shares of the firm's stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $73.42, for a total value of $369,743.12. Following the completion of the sale, the chief financial officer directly owned 17,023 shares of the company's stock, valued at $1,249,828.66. The trade was a 22.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 32.10% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Eurizon Capital SGR S.p.A. purchased a new stake in shares of Urban Outfitters in the 4th quarter worth about $27,000. Brown Brothers Harriman & Co. increased its position in shares of Urban Outfitters by 815.0% during the fourth quarter. Brown Brothers Harriman & Co. now owns 366 shares of the apparel retailer's stock valued at $28,000 after buying an additional 326 shares during the period. Salomon & Ludwin LLC increased its position in shares of Urban Outfitters by 58.4% during the fourth quarter. Salomon & Ludwin LLC now owns 404 shares of the apparel retailer's stock valued at $31,000 after buying an additional 149 shares during the period. Spire Wealth Management raised its stake in Urban Outfitters by 83.3% in the fourth quarter. Spire Wealth Management now owns 440 shares of the apparel retailer's stock worth $33,000 after buying an additional 200 shares in the last quarter. Finally, Richardson Financial Services Inc. raised its stake in Urban Outfitters by 90.3% in the fourth quarter. Richardson Financial Services Inc. now owns 432 shares of the apparel retailer's stock worth $33,000 after buying an additional 205 shares in the last quarter. 77.61% of the stock is owned by hedge funds and other institutional investors.

About Urban Outfitters

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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