American Eagle Outfitters (NYSE:AEO) Downgraded to "Buy" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded American Eagle from a “strong-buy” to a “buy”, while MarketBeat data show a consensus “Reduce” rating with an average price target of $21.75 (1 Buy, 13 Hold, 2 Sell).
• The company recently beat quarterly estimates—EPS $0.84 vs. $0.71 and revenue $1.81B (up 12.2% year-over-year)—and analysts expect roughly 1.7 EPS for the current fiscal year.
• Insiders have been selling shares (9,566 shares valued at about $198k in the last 90 days, including director sales on April 6), while institutional investors own approximately 97.33% of the stock.

American Eagle Outfitters (NYSE:AEO - Get Free Report) was downgraded by analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a report released on Sunday.

Several other equities analysts also recently weighed in on AEO. Needham & Company LLC initiated coverage on American Eagle Outfitters in a research report on Thursday, March 26th. They set a "hold" rating on the stock. TD Cowen lowered their target price on American Eagle Outfitters from $27.00 to $21.00 and set a "hold" rating on the stock in a research report on Friday, March 6th. Citigroup lifted their target price on American Eagle Outfitters from $23.00 to $24.00 and gave the company a "neutral" rating in a research report on Friday, March 6th. Barclays lowered their target price on American Eagle Outfitters from $24.00 to $19.00 and set an "underweight" rating on the stock in a research report on Thursday, March 5th. Finally, UBS Group lifted their target price on American Eagle Outfitters from $31.00 to $35.00 and gave the company a "buy" rating in a research report on Thursday, January 8th. One research analyst has rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Reduce" and an average price target of $21.75.

American Eagle Outfitters Stock Performance

Shares of NYSE:AEO opened at $18.29 on Friday. American Eagle Outfitters has a 52-week low of $9.27 and a 52-week high of $28.46. The firm has a market capitalization of $3.05 billion, a P/E ratio of 16.33, a P/E/G ratio of 1.30 and a beta of 1.50. The stock has a 50 day moving average price of $20.51 and a 200-day moving average price of $20.89.

American Eagle Outfitters (NYSE:AEO - Get Free Report) last posted its quarterly earnings data on Wednesday, March 4th. The apparel retailer reported $0.84 earnings per share 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 company had revenue of $1.81 billion during the quarter, compared to analyst estimates of $1.74 billion. During the same quarter last year, the company earned $0.54 EPS. The firm's revenue for the quarter was up 12.2% on a year-over-year basis. On average, equities analysts forecast that American Eagle Outfitters will post 1.7 EPS for the current fiscal year.

Insider Activity at American Eagle Outfitters

In other American Eagle Outfitters news, Director Noel Joseph Spiegel sold 2,887 shares of the business's stock in a transaction that occurred on Monday, April 6th. The stock was sold at an average price of $17.32, for a total transaction of $50,002.84. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Cary D. Mcmillan sold 2,887 shares of the business's stock in a transaction that occurred on Monday, April 6th. The shares were sold at an average price of $17.23, for a total value of $49,743.01. The SEC filing for this sale provides additional information. Insiders have sold 9,566 shares of company stock valued at $198,091 in the last 90 days. Company insiders own 8.70% of the company's stock.

Institutional Trading of American Eagle Outfitters

A number of hedge funds have recently bought and sold shares of the stock. Quadrant Capital Group LLC increased its position in shares of American Eagle Outfitters by 31.8% in the 4th 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 period. Cambria Investment Management L.P. increased its position in shares of American Eagle Outfitters by 4.5% in 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 position in shares of American Eagle Outfitters by 50.0% in the 3rd 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 during the period. Los Angeles Capital Management LLC increased its position in shares of American Eagle Outfitters by 2.1% in the 4th quarter. Los Angeles Capital Management LLC now owns 25,363 shares of the apparel retailer's stock valued at $669,000 after acquiring an additional 510 shares during the period. Finally, PNC Financial Services Group Inc. increased its position 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 valued at $254,000 after acquiring an additional 678 shares during the period. Hedge funds and other institutional investors own 97.33% of the company's stock.

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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