Zacks Investment Research upgraded shares of Urban Outfitters (NASDAQ:URBN) from a sell rating to a hold rating in a report published on Tuesday morning.
According to Zacks, “Shares of Urban Outfitters have slid and lagged the industry in the past six months, courtesy of elevated SG&A expenses. Going ahead, SG&A expenses is expected to rise during the final quarter of fiscal 2019 owing to higher digital marketing investments, incentive-based compensation and increased store payroll. This may strain margins to an extent. Further, fashion obsolescence remains a concern for the business model. We also note that although comparable retail segment net sales rose for the sixth quarter in row during the fourth quarter, the rate of growth has decelerated. This may not have been also well perceived by investors. Nevertheless, we believe new store openings, increased digital penetration, merchandising improvements and international expansion bode well. Management is also making efforts to enhance the performance of brands through store refurbishment and by bringing in more compelling assortments.”
A number of other research analysts have also recently commented on the stock. B. Riley cut their price target on shares of Urban Outfitters from $52.00 to $40.00 and set a buy rating for the company in a research note on Thursday, February 14th. Deutsche Bank set a $33.00 price target on shares of Urban Outfitters and gave the stock a hold rating in a research note on Friday, February 8th. Telsey Advisory Group restated a market perform rating and set a $35.00 price target (down previously from $36.00) on shares of Urban Outfitters in a research note on Friday, February 8th. ValuEngine cut shares of Urban Outfitters from a hold rating to a sell rating in a research note on Saturday, February 2nd. Finally, BidaskClub cut shares of Urban Outfitters from a sell rating to a strong sell rating in a research note on Saturday, January 19th. Three investment analysts have rated the stock with a sell rating, thirteen have issued a hold rating and eight have issued a buy rating to the company’s stock. Urban Outfitters has a consensus rating of Hold and a consensus price target of $43.26.
Several large investors have recently bought and sold shares of the company. FMR LLC increased its holdings in shares of Urban Outfitters by 79.7% in the second quarter. FMR LLC now owns 7,872,878 shares of the apparel retailer’s stock valued at $350,737,000 after purchasing an additional 3,492,613 shares in the last quarter. Bank of New York Mellon Corp increased its holdings in shares of Urban Outfitters by 6.4% in the second quarter. Bank of New York Mellon Corp now owns 1,725,076 shares of the apparel retailer’s stock valued at $76,854,000 after purchasing an additional 103,280 shares in the last quarter. Bank of Montreal Can increased its holdings in shares of Urban Outfitters by 80.3% in the third quarter. Bank of Montreal Can now owns 29,864 shares of the apparel retailer’s stock valued at $1,220,000 after purchasing an additional 13,302 shares in the last quarter. First Hawaiian Bank acquired a new stake in shares of Urban Outfitters in the third quarter valued at approximately $661,000. Finally, Strs Ohio increased its holdings in shares of Urban Outfitters by 28.5% in the third quarter. Strs Ohio now owns 7,481 shares of the apparel retailer’s stock valued at $305,000 after purchasing an additional 1,661 shares in the last quarter. Institutional investors own 77.24% of the company’s stock.
Urban Outfitters Company Profile
Urban Outfitters, Inc, a lifestyle products and services company, engages in the retail and wholesale of general consumer products. The company retails women's and men's fashion apparel, activewear, intimates, footwear, accessories, home goods, electronics, and beauty products for young adults aged 18 to 28 under the Urban Outfitters brand; and women's casual apparel and accessories, intimates, shoes, and home furnishings, as well as gifts, decorative items, and beauty products for women aged 28 to 45 under the Anthropologie brand.
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