Urban Outfitters stock is bucking the broader retail trend
Shares of Urban Outfitters, Inc. (NASDAQ:URBN) are higher today, bucking the broader retail trend into the red, after the company stepped into the earnings confessional last night. URBN's third-quarter earnings and revenue surpassed analysts' expectations across the board, with the stock now on pace to snap a seven-day losing streak, up 4% at $37.04, at last check.
However, several analysts have slashed their price targets, including D.A. Davidson, which cut its price target to $38 from $40. Telsey Advisory Group, meanwhile, trimmed its target to $42 from $44. Prior to earnings, coverage on URBN was cautious, with 14 of 21 analysts issuing a tepid "hold" or "strong sell" rating.
Since its Aug. 22 record high of $52.50, URBN has been in slow decline, with early November rebound attempts stalling at its 50-day and 200-day trendlines -- which recently made a "death cross." Yesterday, in fact, the stock touched its lowest point since mid-February.
A short squeeze could create additional tailwinds for the retailer. URBN's short interest of 13.83 million shares still represents close to 20% of the stock's available float. At the equity's average daily trading volume, it would take over six sessions for traders to repurchase their pessimistic positions.