American Eagle Outfitters, Inc. (NYSE:AEO) Receives Consensus Rating of "Reduce" from Brokerages

Key Points

• Analyst consensus: Fifteen brokerages covering AEO give it an average rating of "Reduce" (2 sell, 12 hold, 1 buy) with a mean 12‑month target of $21.75.
• Recent results and dividend: American Eagle beat estimates with $0.84 EPS vs. $0.71 expected and revenue of $1.76B (up 12.2% YoY), and declared a quarterly dividend of $0.125 ($0.50 annualized, ~2.8% yield).
• Ownership and valuation snapshot: Insiders recently sold shares, insiders own 8.7% while institutions own 97.33%, and the stock trades at a ~15.7 P/E with a market cap near $2.98B and a 52‑week range of $9.27–$28.46.

Shares of American Eagle Outfitters, Inc. (NYSE:AEO - Get Free Report) have received an average rating of "Reduce" from the fifteen research firms that are covering the stock, MarketBeat reports. Two equities research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and one has issued a buy rating on the company. The average 12-month target price among brokers that have covered the stock in the last year is $21.75.

A number of research firms have commented on AEO. Morgan Stanley set a $23.00 target price on shares of American Eagle Outfitters in a research note on Wednesday, December 3rd. Zacks Research lowered shares of American Eagle Outfitters from a "strong-buy" rating to a "hold" rating in a research report on Tuesday. UBS Group increased their price objective on shares of American Eagle Outfitters from $31.00 to $35.00 and gave the stock a "buy" rating in a research note on Thursday, January 8th. The Goldman Sachs Group started coverage on shares of American Eagle Outfitters in a research report on Thursday, December 11th. They set a "neutral" rating and a $25.00 price objective on the stock. Finally, Citigroup lifted their target price on shares of American Eagle Outfitters from $23.00 to $24.00 and gave the company a "neutral" rating in a research note on Friday, March 6th.

American Eagle Outfitters Stock Performance

NYSE:AEO opened at $17.58 on Friday. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.71 and a current ratio of 1.52. The stock has a 50-day simple moving average of $23.84 and a two-hundred day simple moving average of $20.84. The firm has a market capitalization of $2.98 billion, a PE ratio of 15.69, a P/E/G ratio of 1.25 and a beta of 1.39. American Eagle Outfitters has a 52-week low of $9.27 and a 52-week high of $28.46.

American Eagle Outfitters (NYSE:AEO - Get Free Report) last posted its quarterly earnings data on Wednesday, March 4th. The apparel retailer reported $0.84 EPS for the quarter, topping the consensus estimate of $0.71 by $0.13. American Eagle Outfitters had a return on equity of 16.76% and a net margin of 3.49%.The firm had revenue of $1.76 billion for the quarter, compared to the consensus estimate of $1.74 billion. During the same quarter last year, the company earned $0.54 earnings per share. The business's revenue for the quarter was up 12.2% compared to the same quarter last year. Analysts forecast that American Eagle Outfitters will post 1.7 EPS for the current year.

American Eagle Outfitters Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, April 24th. Shareholders of record on Friday, April 10th will be issued a dividend of $0.125 per share. The ex-dividend date of this dividend is Friday, April 10th. This represents a $0.50 dividend on an annualized basis and a yield of 2.8%. American Eagle Outfitters's dividend payout ratio (DPR) is currently 44.64%.

Insider Transactions at American Eagle Outfitters

In related news, Director Noel Joseph Spiegel sold 1,896 shares of the stock in a transaction dated Wednesday, January 21st. The stock was sold at an average price of $25.66, for a total transaction of $48,651.36. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Cary D. Mcmillan sold 1,896 shares of the stock in a transaction dated Wednesday, January 14th. The stock was sold at an average price of $26.21, for a total value of $49,694.16. The SEC filing for this sale provides additional information. 8.70% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Marshall Wace LLP grew its holdings in American Eagle Outfitters by 920.6% during the 3rd quarter. Marshall Wace LLP now owns 5,497,720 shares of the apparel retailer's stock valued at $94,066,000 after buying an additional 4,959,039 shares in the last quarter. Balyasny Asset Management L.P. purchased a new position in shares of American Eagle Outfitters in the fourth quarter worth $40,954,000. Arrowstreet Capital Limited Partnership boosted its position in shares of American Eagle Outfitters by 153.1% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 2,410,162 shares of the apparel retailer's stock worth $63,556,000 after acquiring an additional 1,457,785 shares during the last quarter. Segall Bryant & Hamill LLC bought a new position in shares of American Eagle Outfitters during the third quarter worth $23,395,000. Finally, Kinetic Partners Management LP purchased a new position in American Eagle Outfitters during the third quarter valued at $14,618,000. 97.33% of the stock is currently owned by institutional investors.

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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