American Eagle Outfitters, Inc. (NYSE:AEO) Receives Average Rating of "Hold" from Analysts

Key Points

• American Eagle Outfitters has a consensus analyst rating of Hold, based on 14 ratings firms; the average 1-year price target is about $20.36.
• The company’s latest quarterly results beat expectations, with $0.14 EPS versus the $0.11 estimate and $1.20 billion in revenue, up 9.7% year over year.
• American Eagle also announced a quarterly dividend of $0.125 per share to be paid on July 24, implying an annualized yield of 2.8%.

American Eagle Outfitters, Inc. (NYSE:AEO - Get Free Report) has earned a consensus rating of "Hold" from the fourteen ratings firms that are covering the stock, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, twelve have issued a hold recommendation and one has assigned a buy recommendation to the company. The average 1-year target price among analysts that have updated their coverage on the stock in the last year is $20.3636.

AEO has been the topic of several research reports. Needham & Company LLC initiated coverage on American Eagle Outfitters in a report on Thursday, March 26th. They issued a "hold" rating on the stock. 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 report on Friday, May 29th. Wall Street Zen cut American Eagle Outfitters from a "buy" rating to a "hold" rating in a report on Sunday, June 7th. JPMorgan Chase & Co. dropped their price target on American Eagle Outfitters from $25.00 to $19.00 and set a "neutral" rating on the stock in a report on Friday, May 29th. Finally, Citigroup dropped their price target on American Eagle Outfitters from $24.00 to $18.00 and set a "neutral" rating on the stock in a report on Monday, June 1st.

Insider Activity

In other American Eagle Outfitters news, Director Cary D. Mcmillan sold 2,887 shares of the business's stock in a transaction dated Monday, April 6th. The stock was sold at an average price of $17.23, for a total transaction of $49,743.01. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Noel Joseph Spiegel sold 2,887 shares of the business's stock in a transaction dated Monday, April 6th. The stock was sold at an average price of $17.32, for a total value of $50,002.84. The SEC filing for this sale provides additional information. 8.95% of the stock is currently owned by insiders.

Institutional Trading of American Eagle Outfitters

Several large investors have recently added to or reduced their stakes in AEO. Strategic Investment Solutions Inc. IL raised its stake in American Eagle Outfitters by 50.0% during the 3rd quarter. Strategic Investment Solutions Inc. IL now owns 1,500 shares of the apparel retailer's stock valued at $26,000 after purchasing an additional 500 shares during the period. Kemnay Advisory Services Inc. acquired a new stake in American Eagle Outfitters during the 4th quarter valued at $31,000. Aster Capital Management DIFC Ltd acquired a new stake in American Eagle Outfitters during the 4th quarter valued at $32,000. Raymond James Financial Inc. acquired a new stake in American Eagle Outfitters during the 2nd quarter valued at $35,000. Finally, Federated Hermes Inc. raised its stake in American Eagle Outfitters by 151.0% during the 2nd quarter. Federated Hermes Inc. now owns 3,848 shares of the apparel retailer's stock valued at $37,000 after purchasing an additional 2,315 shares during the period. 97.33% of the stock is owned by institutional investors and hedge funds.

American Eagle Outfitters Price Performance

Shares of American Eagle Outfitters stock opened at $17.82 on Monday. 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 company's 50-day moving average price is $17.27 and its two-hundred day moving average price is $20.97. American Eagle Outfitters has a 52 week low of $9.46 and a 52 week high of $28.46. The stock has a market cap of $2.99 billion, a PE ratio of 11.00, a price-to-earnings-growth ratio of 3.87 and a beta of 1.34.

American Eagle Outfitters (NYSE:AEO - Get Free Report) last issued its quarterly earnings results on Thursday, May 28th. The apparel retailer reported $0.14 EPS for the quarter, topping the consensus estimate of $0.11 by $0.03. The firm had revenue of $1.20 billion for the quarter, compared to analysts' expectations of $1.18 billion. American Eagle Outfitters had a net margin of 5.01% and a return on equity of 20.95%. American Eagle Outfitters's revenue for the quarter was up 9.7% compared to the same quarter last year. During the same period in the previous year, the business earned ($0.29) earnings per share. As a group, sell-side analysts anticipate that American Eagle Outfitters will post 1.77 EPS for the current fiscal year.

American Eagle Outfitters Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, July 24th. Shareholders of record on Friday, July 10th will be issued a dividend of $0.125 per share. This represents a $0.50 annualized dividend and a yield of 2.8%. The ex-dividend date is Friday, July 10th. American Eagle Outfitters's payout ratio is presently 30.86%.

About American Eagle Outfitters

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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