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

Key Points

• Sixteen brokerages give American Eagle Outfitters a consensus recommendation of “Reduce” (2 sell, 13 hold, 1 buy), with an average 12‑month price target of $21.75.
• The company recently beat expectations, reporting $0.84 EPS vs. $0.71 est and $1.81B in revenue (up 12.2% year‑over‑year), and analysts expect $1.76 EPS for the current fiscal year.
• Two directors sold 2,887 shares each at about $17.30 on April 6; insiders own 8.7% while institutional/hedge fund ownership is ~97.33%, and the firm pays a $0.125 quarterly dividend (≈3.0% yield).

American Eagle Outfitters, Inc. (NYSE:AEO - Get Free Report) has earned a consensus recommendation of "Reduce" from the sixteen brokerages that are covering the firm, MarketBeat reports. Two equities research analysts have rated the stock with a sell rating, thirteen have given a hold rating and one has assigned a buy rating to the company. The average twelve-month price objective among brokerages that have covered the stock in the last year is $21.75.

Several analysts have recently commented on the stock. Wall Street Zen upgraded shares of American Eagle Outfitters from a "buy" rating to a "strong-buy" rating in a report on Saturday, April 25th. Telsey Advisory Group cut their price target on shares of American Eagle Outfitters from $28.00 to $25.00 and set a "market perform" rating on the stock in a report on Thursday, March 5th. TD Cowen reduced their price objective on shares of American Eagle Outfitters from $27.00 to $21.00 and set a "hold" rating for the company in a research report on Friday, March 6th. Barclays decreased their price objective on shares of American Eagle Outfitters from $24.00 to $19.00 and set an "underweight" rating for the company in a research note on Thursday, March 5th. Finally, Citigroup lifted their target price on shares of American Eagle Outfitters from $23.00 to $24.00 and gave the stock a "neutral" rating in a research report on Friday, March 6th.

Insiders Place Their Bets

In other American Eagle Outfitters news, Director Noel Joseph Spiegel sold 2,887 shares of the business's stock in a transaction on Monday, April 6th. The stock was sold at an average price of $17.32, for a total value of $50,002.84. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Cary D. Mcmillan sold 2,887 shares of the company's stock in a transaction on Monday, April 6th. The shares were sold at an average price of $17.23, for a total value of $49,743.01. The disclosure for this sale is available in the SEC filing. Company insiders own 8.70% of the company's stock.

Institutional Trading of American Eagle Outfitters

Large investors have recently added to or reduced their stakes in the stock. Quadrant Capital Group LLC boosted its stake in American Eagle Outfitters by 31.8% in the fourth quarter. Quadrant Capital Group LLC now owns 1,852 shares of the apparel retailer's stock valued at $49,000 after acquiring an additional 447 shares during the last quarter. Cambria Investment Management L.P. grew its position in shares of American Eagle Outfitters by 4.5% during the 3rd quarter. Cambria Investment Management L.P. now owns 10,777 shares of the apparel retailer's stock valued at $184,000 after acquiring an additional 468 shares during the period. Strategic Investment Solutions Inc. IL increased its stake in shares of 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 worth $26,000 after purchasing an additional 500 shares during the last quarter. Los Angeles Capital Management LLC increased its stake in shares of American Eagle Outfitters by 2.1% during the 4th quarter. Los Angeles Capital Management LLC now owns 25,363 shares of the apparel retailer's stock worth $669,000 after purchasing an additional 510 shares during the last quarter. Finally, PNC Financial Services Group Inc. raised its holdings in shares of American Eagle Outfitters by 4.8% in the 3rd quarter. PNC Financial Services Group Inc. now owns 14,855 shares of the apparel retailer's stock worth $254,000 after purchasing an additional 678 shares during the period. Hedge funds and other institutional investors own 97.33% of the company's stock.

American Eagle Outfitters Stock Down 2.8%

AEO stock opened at $16.94 on Friday. The firm has a market capitalization of $2.82 billion, a PE ratio of 15.13, a P/E/G ratio of 1.20 and a beta of 1.38. American Eagle Outfitters has a twelve month low of $9.27 and a twelve month high of $28.46. The stock's 50 day moving average is $18.84 and its 200-day moving average is $21.08.

American Eagle Outfitters (NYSE:AEO - Get Free Report) last released its quarterly earnings results on Wednesday, March 4th. The apparel retailer reported $0.84 EPS for the quarter, beating analysts' consensus estimates 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 business had revenue of $1.81 billion during the quarter, compared to analyst estimates of $1.74 billion. During the same period in the prior year, the firm posted $0.54 EPS. American Eagle Outfitters's quarterly revenue was up 12.2% compared to the same quarter last year. On average, equities research analysts anticipate that American Eagle Outfitters will post 1.76 earnings per share for the current fiscal year.

American Eagle Outfitters Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, April 24th. Investors of record on Friday, April 10th were given a dividend of $0.125 per share. This represents a $0.50 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date of this dividend was Friday, April 10th. American Eagle Outfitters's dividend payout ratio (DPR) is presently 44.64%.

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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