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

Key Points

• American Eagle Outfitters has an average analyst rating of “Hold” from 15 covering firms, with most analysts rating it hold and the consensus 12-month price target around $19.91.
• Recent analyst actions were mixed but mostly cautious, including price target cuts from JPMorgan, Barclays, and Telsey Advisory Group, while UBS reiterated a buy rating.
• The company reported better-than-expected Q1 results, with EPS of $0.14 versus $0.11 expected and revenue of $1.20 billion, and it also announced a quarterly dividend of $0.125 per share payable July 24.

Shares of American Eagle Outfitters, Inc. (NYSE:AEO - Get Free Report) have earned an average recommendation of "Hold" from the fifteen research firms that are covering the company, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell rating, twelve have given a hold rating and two have assigned a buy rating to the company. The average 12-month target price among brokerages that have covered the stock in the last year is $19.9091.

AEO has been the topic of a number of recent analyst reports. JPMorgan Chase & Co. lowered their price target on American Eagle Outfitters from $25.00 to $19.00 and set a "neutral" rating on the stock in a research report on Friday, May 29th. UBS Group restated a "buy" rating on shares of American Eagle Outfitters in a research report on Wednesday. Barclays reduced their target price on American Eagle Outfitters from $19.00 to $17.00 and set an "equal weight" rating for the company in a research note on Friday, May 29th. Telsey Advisory Group decreased their target price on American Eagle Outfitters from $25.00 to $20.00 and set a "market perform" rating on the stock in a research report on Friday, May 29th. Finally, Wall Street Zen cut shares of American Eagle Outfitters from a "buy" rating to a "hold" rating in a research note on Sunday, July 12th.

Insider Activity

In related news, Director Noel Joseph Spiegel sold 2,892 shares of the firm's stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $16.78, for a total value of $48,527.76. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, Director Cary D. Mcmillan sold 2,892 shares of the firm's stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $16.77, for a total transaction of $48,498.84. The SEC filing for this sale provides additional information. 8.95% of the stock is owned by company insiders.

Institutional Investors Weigh In On American Eagle Outfitters

Large investors have recently bought and sold shares of the company. Strategic Investment Solutions Inc. IL lifted its position in shares of American Eagle Outfitters by 50.0% in the third quarter. Strategic Investment Solutions Inc. IL now owns 1,500 shares of the apparel retailer's stock valued at $26,000 after acquiring an additional 500 shares in the last quarter. Kemnay Advisory Services Inc. purchased a new stake in shares of American Eagle Outfitters during the fourth quarter worth approximately $31,000. Aster Capital Management DIFC Ltd purchased a new stake in shares of American Eagle Outfitters during the fourth quarter worth approximately $32,000. Raymond James Financial Inc. acquired a new position in American Eagle Outfitters in the 2nd quarter valued at $35,000. Finally, Federated Hermes Inc. raised its stake in American Eagle Outfitters by 151.0% in 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 last quarter. 97.33% of the stock is currently owned by hedge funds and other institutional investors.

American Eagle Outfitters Trading Up 0.2%

Shares of American Eagle Outfitters stock opened at $17.45 on Friday. The firm has a 50-day simple moving average of $16.86 and a two-hundred day simple moving average of $19.85. The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.53 and a current ratio of 1.55. American Eagle Outfitters has a fifty-two week low of $9.65 and a fifty-two week high of $28.46. The company has a market cap of $2.92 billion, a P/E ratio of 10.77, a price-to-earnings-growth ratio of 3.80 and a beta of 1.31.

American Eagle Outfitters (NYSE:AEO - Get Free Report) last posted its earnings results on Thursday, May 28th. The apparel retailer reported $0.14 EPS for the quarter, beating analysts' consensus estimates of $0.11 by $0.03. American Eagle Outfitters had a return on equity of 20.95% and a net margin of 5.01%.The firm had revenue of $1.20 billion for the quarter, compared to analysts' expectations of $1.18 billion. During the same period last year, the firm earned ($0.29) EPS. The company's quarterly revenue was up 9.7% on a year-over-year basis. As a group, equities analysts predict that American Eagle Outfitters will post 1.76 earnings per share 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 2.9%. The ex-dividend date of this dividend is Friday, July 10th. American Eagle Outfitters's dividend payout ratio (DPR) is presently 30.86%.

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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