Urban Outfitters Inc (NASDAQ:URBN) is the latest retail giant to report strong results, beating top- and bottom-line expectations in the third quarter. The company also saw an 8% jump in same-store sales, while its clothing rental subscription Nuuly enjoyed a 49% sales and subscriber increase. In response, URBN is up 15.9% to trade at $79.20 before the open.
The security is already collecting bull notes, with no fewer than six analysts raising their price targets, including Barclays to $98 from $89. Analysts are split on URBN, with six of the 11 in coverage carrying a "hold" or worse rating.
Should premarket gains hold, URBN could notch its best single-day percentage gain since May, open at its highest level since August, and extend a 68.8% year-over-year lead. The surge could also place the equity within striking distance of its Aug. 7, record high of $80.71. Shares had been testing a floor at $60 before yesterday breaking above the 40-day moving average.
Options bears rule the roost, so an unwinding of pessimism could put wind at URBN's back. This is per the stock's 50-day put/call volume ratio of 5.77 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than all other annual readings.
The equity look ripe for a short squeeze, too. While short interest has already started to unwind, down 6.8% over the last reporting period, it still makes up 15.2% of the security's available float. It would take shorts over a week to cover their bearish bets, at its average pace of daily trading.
