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

Key Points

• American Eagle Outfitters, Inc. has received a consensus rating of "Reduce" from thirteen brokerage firms, with three sell ratings, nine holds, and one buy rating.
• The company's shares are currently trading at an average price target of $14.40, although recent reports have seen target prices adjusted downwards by several analysts.
• American Eagle reported a loss of $0.29 EPS for the last quarter, missing earnings estimates, while revenues declined 4.7% year-over-year at $1.09 billion.

Shares of American Eagle Outfitters, Inc. (NYSE:AEO - Get Free Report) have been assigned a consensus recommendation of "Reduce" from the thirteen ratings firms that are covering the company, MarketBeat Ratings reports. Three investment analysts have rated the stock with a sell rating, nine have issued a hold rating and one has issued a buy rating on the company. The average 1-year price target among analysts that have issued ratings on the stock in the last year is $14.40.

A number of brokerages recently commented on AEO. Zacks Research raised American Eagle Outfitters to a "hold" rating in a research note on Monday, August 11th. Telsey Advisory Group increased their target price on American Eagle Outfitters to $12.00 and gave the company a "hold" rating in a research report on Friday, May 30th. Wall Street Zen cut shares of American Eagle Outfitters from a "hold" rating to a "sell" rating in a research report on Saturday, June 7th. Citigroup reiterated a "neutral" rating on shares of American Eagle Outfitters in a research report on Friday, May 23rd. Finally, BMO Capital Markets dropped their price objective on shares of American Eagle Outfitters from $15.00 to $11.00 and set a "market perform" rating for the company in a research note on Wednesday, May 14th.

American Eagle Outfitters Price Performance

Shares of NYSE:AEO opened at $12.50 on Tuesday. The firm has a market cap of $2.17 billion, a price-to-earnings ratio of 12.76 and a beta of 1.51. The firm has a fifty day moving average price of $11.03 and a 200 day moving average price of $11.42. American Eagle Outfitters has a fifty-two week low of $9.27 and a fifty-two week high of $22.83. The company has a debt-to-equity ratio of 0.07, a quick ratio of 0.56 and a current ratio of 1.38.

American Eagle Outfitters (NYSE:AEO - Get Free Report) last announced its quarterly earnings results on Thursday, May 29th. The apparel retailer reported ($0.29) EPS for the quarter, missing the consensus estimate of ($0.25) by ($0.04). American Eagle Outfitters had a return on equity of 13.34% and a net margin of 3.73%.The company had revenue of $1.09 billion during the quarter, compared to analysts' expectations of $1.08 billion. During the same quarter in the previous year, the firm earned $0.34 EPS. The firm's revenue for the quarter was down 4.7% compared to the same quarter last year. American Eagle Outfitters has set its Q2 2025 guidance at EPS. As a group, sell-side analysts expect that American Eagle Outfitters will post 1.7 earnings per share for the current fiscal year.

American Eagle Outfitters Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, July 25th. Shareholders of record on Friday, July 11th were paid a dividend of $0.125 per share. This represents a $0.50 annualized dividend and a yield of 4.0%. The ex-dividend date of this dividend was Friday, July 11th. American Eagle Outfitters's payout ratio is presently 51.02%.

Institutional Investors Weigh In On American Eagle Outfitters

Several institutional investors have recently modified their holdings of AEO. GAMMA Investing LLC increased its position in shares of American Eagle Outfitters by 380.4% during the 1st quarter. GAMMA Investing LLC now owns 2,325 shares of the apparel retailer's stock valued at $27,000 after purchasing an additional 1,841 shares during the last quarter. Raymond James Financial Inc. bought a new stake in American Eagle Outfitters in the second quarter worth $35,000. Federated Hermes Inc. boosted its stake in American Eagle Outfitters by 151.0% during the second quarter. Federated Hermes Inc. now owns 3,848 shares of the apparel retailer's stock worth $37,000 after buying an additional 2,315 shares during the period. Asset Management One Co. Ltd. increased its position in American Eagle Outfitters by 38.7% during the first quarter. Asset Management One Co. Ltd. now owns 4,173 shares of the apparel retailer's stock valued at $48,000 after acquiring an additional 1,165 shares during the last quarter. Finally, State of Wyoming purchased a new stake in shares of American Eagle Outfitters in the fourth quarter valued at $49,000. 97.33% of the stock is owned by institutional investors.

About American Eagle Outfitters

American Eagle Outfitters, Inc operates as a multi-brand specialty retailer in the United States and internationally. The company provides jeans, apparel and accessories, and personal care products for women and men under the American Eagle brand; and intimates, apparel, activewear, and swim collections under the Aerie and OFFLINE by Aerie brands.

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