Reassessing The Changing Outlook For Urban Outfitters Inc. (URBN)

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    Shapiro Capital Management LLC recently announced the acquisition of new stake in Urban Outfitters Inc. (NASDAQ:URBN). The institutional investor has increased its shareholding in the Consumer Cyclical company by 7.95% to 10.64 million shares with purchase of 0.78 million shares. This fresh investment now brings its stake to 10.88% valued currently at $175.96 million. In addition, BlackRock Fund Advisors raised its holdings by 1.58 million to 7.14 million shares. And Dimensional Fund Advisors LP has lifted its position by 15.62% or 0.78 million shares – to 5.8 million shares.

    With over 5.09 million Urban Outfitters Inc. (URBN) shares trading Tuesday and a closing price of $20.80 on the day, the dollar volume was approximately $105.77 million. The shares have shown a positive weekly performance of 7.08% and its price on 08/25/20 gained nearly 2.39%. Currently, there are 97.91M common shares owned by the public and among those 56.59M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 22 analysts who have offered their price forecasts for URBN have a consensus price objective of $19.17. The analysts have set the share’s price value over the next 12 months at a high of $23.00 and a low of $14.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Urban Outfitters Inc. stock is 2.70 for the next 12 months. The average price target is -8.5% below its last price level and a downside to the estimated low will see the stock lose -48.57% over that period. But an upside of 9.57% will see the stock hit the forecast high price target while mean target price for the stock is $20.00.

    Insiders at the company have transacted a total of 19 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 9 of these insider trades were purchases, accounting for 113,331 shares. Insider sales of the common stock occurred on 10 occasions, with total insider shares sold totaling 46,852 shares.

    The top 3 mutual fund holders in Urban Outfitters Inc. are Fidelity Low Priced Stock Fund, iShares Core S&P Mid Cap ETF, and Vanguard Total Stock Market Index. Fidelity Low Priced Stock Fund owns 3.39 million shares of the company’s stock, all valued at over $56.11 million. The company bought an additional 13404.0 shares recently to bring their total holdings to about 3.47% of the shares outstanding. iShares Core S&P Mid Cap ETF sold 3591.0 shares to see its total holdings shrink to 1.88 million shares valued at over $31.04 million and representing 1.92% of the shares outstanding. Vanguard Total Stock Market Index sold 1625.0 shares to bring its total holdings to over 1.69 million shares at a value of $27.91 million. Vanguard Total Stock Market Index now owns shares totaling to 1.73% of the shares outstanding.

    Shares of Urban Outfitters Inc. (NASDAQ: URBN) opened at $20.09, down -$0.23 from a prior closing price of $20.32. However, the script later closed the day at $20.80, up 2.39%. The company’s stock has a 5-day price change of 7.08% and 9.36% over the past three months. URBN shares are trading -25.10% year to date (YTD), with the 12-month market performance down to -7.39% lower. It has a 12-month low price of $12.28 and touched a high of $31.41 over the same period. Currently, 5.09 million shares have been traded, compared to an average intraday trading volume of 2.37 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 11.33%, 20.37%, and -0.97% respectively.

    Institutional ownership of Urban Outfitters Inc. (NASDAQ: URBN) shares accounts for 75.90% of the company’s 97.91M shares outstanding. Mutual fund holders own 39.21%, while other institutional holders and individual stakeholders account for 39.58% and 37.28% respectively.

    It has a market capitalization of $2.03B and a beta (3y monthly) value of 1.35. The earnings-per-share (ttm) stands at -$0.05. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.26% over the week and 5.42% over the month.

    Analysts forecast that Urban Outfitters Inc. (URBN) will achieve an EPS of $0.15 for the current quarter, $0.35 for the next quarter and $1.37 for 2022. The lowest estimate earnings-per-share for the quarter is -$0.47 while analysts give the company a high EPS estimate of $0.46. Comparatively, EPS for the current quarter was $0.56 a year ago. Earnings per share for the fiscal year are expected to decrease by -38.70%, and 207.80% over the next financial year. EPS should grow at an annualized rate of 2.88% over the next five years, compared to -0.10% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 22 brokerage firm advisors rate Urban Outfitters Inc. (URBN) as a “Moderate Buy” at a consensus score of 2.70. Specifically, 5 Wall Street analysts polled rate the stock as a buy, while 15 of the 22 advise that investors “hold,” and 1 rated it as a “Sell.”

    Looking at the support for the URBN, a number of firms have released research notes about the stock. UBS stated their Neutral rating for the stock in a research note on August 12, 2020, with the firm’s price target at $21. Loop Capital coverage for the Urban Outfitters Inc. (URBN) stock in a research note released on July 20, 2020 offered a Sell rating with a price target of. Telsey Advisory Group was of a view on May 20, 2020 that the stock is Outperform, while Telsey Advisory Group gave the stock Outperform rating on March 04, 2020, issuing a price target of $29- $24. BMO Capital Markets on their part issued Market Perform rating on February 04, 2020.

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