American Eagle Outfitters' (AEO) "Underperform" Rating Reaffirmed at Bank of America

Key Points

• Bank of America reaffirmed its “underperform” rating on American Eagle Outfitters and maintained a $16 price target, implying roughly 2% downside from the prior close.
• AEO shares rose 0.2% to $16.32, while the broader analyst consensus remained “hold,” with an average price target of $19.91. The company recently exceeded quarterly earnings and revenue estimates.
• Insiders sold 11,563 shares worth approximately $196,599 over the past quarter, while institutional investors owned 97.33% of the company’s stock.

American Eagle Outfitters (NYSE:AEO - Get Free Report)'s stock had its "underperform" rating reiterated by Bank of America in a report issued on Friday,Benzinga reports. They currently have a $16.00 target price on the apparel retailer's stock. Bank of America's target price would suggest a potential downside of 1.99% from the stock's previous close.

AEO has been the subject of a number of other reports. Wall Street Zen raised shares of American Eagle Outfitters from a "hold" rating to a "buy" rating in a research report on Saturday, August 1st. TD Cowen cut their target price on American Eagle Outfitters from $19.00 to $18.00 and set a "hold" rating on the stock in a research report on Monday, May 18th. Morgan Stanley reissued an "equal weight" rating and issued a $18.00 target price on shares of American Eagle Outfitters in a report on Monday, July 6th. Telsey Advisory Group decreased their target price on American Eagle Outfitters from $25.00 to $20.00 and set a "market perform" rating for the company in a research report on Friday, May 29th. Finally, Barclays dropped their price target on American Eagle Outfitters from $19.00 to $17.00 and set an "equal weight" rating on the stock in a research note on Friday, May 29th. Two research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $19.91.

American Eagle Outfitters Stock Up 0.2%

AEO stock traded up $0.03 during trading on Friday, hitting $16.32. 1,859,775 shares of the company's stock were exchanged, compared to its average volume of 5,346,640. The business has a 50-day moving average price of $17.37 and a two-hundred day moving average price of $18.61. The company has a current ratio of 1.55, a quick ratio of 0.53 and a debt-to-equity ratio of 0.05. The stock has a market capitalization of $2.74 billion, a price-to-earnings ratio of 10.06, a PEG ratio of 3.55 and a beta of 1.32. American Eagle Outfitters has a 52-week low of $12.05 and a 52-week high of $28.46.

American Eagle Outfitters (NYSE:AEO - Get Free Report) last announced its quarterly earnings results on Thursday, May 28th. The apparel retailer reported $0.14 EPS for the quarter, beating the consensus estimate of $0.11 by $0.03. The company had revenue of $1.20 billion for the quarter, compared to analyst estimates of $1.18 billion. American Eagle Outfitters had a net margin of 5.01% and a return on equity of 20.95%. The firm's revenue was up 9.7% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.29) earnings per share. As a group, equities research analysts expect that American Eagle Outfitters will post 1.76 EPS for the current year.

Insider Buying and Selling

In related news, Director Cary D. Mcmillan sold 2,892 shares of the firm's stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $16.77, for a total transaction of $48,498.84. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, Director David M. Sable sold 5,779 shares of the business's stock in a transaction dated Friday, July 17th. The shares were sold at an average price of $17.23, for a total value of $99,572.17. Following the completion of the transaction, the director owned 53,481 shares in the company, valued at $921,477.63. This trade represents a 9.75% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 11,563 shares of company stock valued at $196,599 over the last quarter. 8.95% of the stock is currently owned by insiders.

Institutional Investors Weigh In On American Eagle Outfitters

Large investors have recently modified their holdings of the stock. Royal Bank of Canada increased its stake in American Eagle Outfitters by 24.8% in the 1st quarter. Royal Bank of Canada now owns 162,243 shares of the apparel retailer's stock valued at $1,885,000 after buying an additional 32,191 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of American Eagle Outfitters by 4.5% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 105,726 shares of the apparel retailer's stock worth $1,229,000 after acquiring an additional 4,599 shares during the period. Jones Financial Companies Lllp boosted its holdings in shares of American Eagle Outfitters by 1,238.2% in the first quarter. Jones Financial Companies Lllp now owns 52,551 shares of the apparel retailer's stock valued at $611,000 after acquiring an additional 48,624 shares in the last quarter. Empowered Funds LLC boosted its holdings in shares of American Eagle Outfitters by 9.6% in the first quarter. Empowered Funds LLC now owns 15,937 shares of the apparel retailer's stock valued at $185,000 after acquiring an additional 1,398 shares in the last quarter. Finally, Marshall Wace LLP increased its stake in shares of American Eagle Outfitters by 349.9% during the second quarter. Marshall Wace LLP now owns 538,681 shares of the apparel retailer's stock worth $5,182,000 after acquiring an additional 418,943 shares during the period. Hedge funds and other institutional investors own 97.33% of the company's stock.

American Eagle Outfitters Company Profile

American Eagle Outfitters, Inc NYSE: AEO is a leading American specialty retailer offering apparel, accessories and personal care products for men and women. The company's flagship brand, American Eagle, focuses on casualwear including denim, tops, outerwear and accessories targeted primarily at teens and young adults. In addition to its core apparel lines, the company operates the Aerie brand of intimates, loungewear and swimwear, which has gained recognition for its body-positive marketing and inclusive sizing.

American Eagle Outfitters conducts business through a combination of over 900 brick-and-mortar stores in North America and Greater China, complemented by a growing e-commerce platform that serves customers around the globe.

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