Is Urban Outfitters Inc. (URBN) A Good Investment?


Urban Outfitters Inc. (NASDAQ:URBN) finished Thursday with a subtraction of -$0.66 to close at $20.65, a downside of -3.10 percent. An average of 1,660,813 shares of common stock have been traded in the last five days. There was a fall of -$1.10 in the past week, and it reached a new high 9 times over the past 12 months. The last 20 days have seen an average of 1,980,593 shares traded, while the 50-day average volume stands at 2,099,473.

URBN stock has decreased by -2.43% in the last month. The company shares reached their 1-month lowest point of $19.64 on 09/01/22. With the stock rallying to its 52-week high on 01/03/22, shares of the company touched a low of $17.81 and a high of $38.17 in 52 weeks. It has reached a new high 1 time so far this year and lost -27.42% or -$8.82 in price. In spite of this, the price is down -45.90% from the 52-week high.

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Insider Transactions

186 days have passed since Urban Outfitters Inc. (URBN) last reported insider trading activity. Hayne Azeez, who is CAO & General Counsel, most recently acquired $5,000 shares at $26.61 per share on Mar 21. In this transaction, the insider spent $133,025. CAO & General Counsel, Hayne Azeez, disposed of 1,100 shares at a price of $38.00 on Nov 16. The insider now owns more than $41,800 worth of shares. Prior to that, CAO & General Counsel Hayne Azeez went on to Sale 1,100 shares at $35.00 each on Nov 03. An amount of $38,500 was transacted.

Valuation Metrics

Urban Outfitters Inc. (URBN) has a trailing price-to-earnings (P/E) ratio of 9.38. The stock’s beta is 1.38. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.41, the price-to-book (PB) ratio at 1.16.

Financial Health

The quick ratio of Urban Outfitters Inc. for the three months ended July 30 was 0.60, and the current ratio was 1.30, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.00 and a total debt to equity ratio of 0.00 for the quarter ending July 30. Its gross profit as reported stood at $1.49 billion compared to revenue of $4.55 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Urban Outfitters Inc.’s return on assets was 5.90%.

Earnings Surprise

For the three-month period that ended July 30, Urban Outfitters Inc. had $160.02 million in cash. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $59.47 million in the quarter, while revenues of $31.53 million were shrunk -113.99%. The analyst consensus anticipated Urban Outfitters Inc.’s latest quarter earnings to come in at $0.68 per share, but it turned out to be $0.64, a -5.90% surprise. For the quarter, EBITDA amounted to $111.5 million. Shareholders own equity worth $92.17 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Urban Outfitters Inc. (URBN) price momentum. RSI 9-day as of the close on 22 September was 39.79%, suggesting the stock is Neutral, with historical volatility in this time frame at 48.98%.

As of today, URBN’s price is $21.20 -5.08% or -$1.10 from its 5-day moving average. URBN is currently trading -7.14% lower than its 20-day SMA and -16.37% lower than its 100-day SMA. However, the stock’s current price level is +6.81% above the SMA50 and -37.32% below the SMA200.

The stochastic %K and %D were 31.46% and 41.00%, respectively, and the average true range (ATR) was 0.97. With the 14-day stochastic at 8.38% and the average true range at 0.99, the RSI (14) stands at 43.82%. The stock has reached -0.24 on the 9-day MACD Oscillator while the 14-day reading was at -0.51.

Analyst Ratings

B. Riley Securities downgraded Urban Outfitters Inc. (NASDAQ: URBN) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as a Buy.


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