Retail

Urban Outfitters Chairman Unloads Stock (URBN)

Urban Outfitters Inc. (NASDAQ: URBN) been immune for the most part from the stock market carnage.  Shares closed down almost 5% at $34 today, but the stock still trades well nto the upper echelon of its $21.09 to $38.40 trading range of the last 52-weeks.

Insider selling is a part of the markets, and it isn’t a signal of of bad things.  But when we see sales of certain sizes, we have to look further.  In an SEC filing today, Chairman of the Board Richard Hayne noted he sold 1,388,000 shares at prices of $35.64 to $36.12 on Monday and Tuesday.  This represents a total value of more than $49.6 million.

This is nowhere near his entire stake in the company, so don’t think that this is a wholesale exodus on his part. Hayne still owns more than 33.6 million shares, roughly 20% of the company’s common stock.  But a sale of nearly $50 million will raise some eyebrows in a market when traders and investors are easily spooked.

Jon C. Ogg
September 17, 2008

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