Urban Outfitters Stock Hits New Lows After Earnings

J.P. Morgan Securities slashed its URBN target price all the way to $25

Digital Content Manager
May 22, 2019 at 9:40 AM
facebook X logo linkedin


The shares of Urban Outfitters, Inc. (NASDAQ:URBN) are slipping today, after the retailer reported slower growth for its first quarter. Specifically, the firm posted per-share earnings that beat analysts' estimates, but came in 7 cents lower than last year's results, as well as weakening sales and shrinking gross margins -- mostly due to underwhelming women's apparel performance in its Anthropologie and Urban Outfitters brands. The stock is fresh off a new 18-month low of $25.06 as a result -- last seen down 6.9% at $25.15. 

The clothing company's results have analysts paying attention. At least 11 brokerages cut their URBN price targets, including Wells Fargo, Jefferies, and J.P. Morgan Securities, which slashed its target price all the way down to $25 -- the lowest estimate of the bunch. There's still room for more bear notes, with five analysts giving the equity a "buy" or better rating, and the consensus 12-month target price of $32.88 representing a roughly 31% premium to current levels.

URBN stock has seen a steep descent since spiking at an all-time high of $52.50 last August. The security attempted to rebound off the $28 area earlier this year, but a swift rejection at its 120-day moving average sent the shares even lower. The stock has lost 38% year-over-year.

It's recent negative price action may have been impacted by a steady stream of short selling. In the past two reporting periods, URBN short interest shot up 36.9%. The 10.87 million shares sold short would take a little less than four days to cover, at the stock's average pace of trading, and represents a whopping 14.2% of URBN's available float. 

 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI