American Eagle Outfitters (NYSE:AEO) Price Target Raised to $17.00 at Morgan Stanley

Key Points

• Morgan Stanley has increased its price target for American Eagle Outfitters' stock from $10.00 to $17.00, suggesting a potential downside of 14.44% from the current stock price.
• The company recently reported $0.45 earnings per share for the quarter, exceeding analysts' expectations of $0.20, although revenue declined by 0.6% year-over-year.
• American Eagle Outfitters has received mixed ratings from investment analysts, with one analyst issuing a Buy rating, nine issuing Hold ratings, and three issuing Sell ratings, reflecting a cautious outlook on the stock.

American Eagle Outfitters (NYSE:AEO - Free Report) had its target price raised by Morgan Stanley from $10.00 to $17.00 in a research note issued to investors on Thursday morning, MarketBeat.com reports. They currently have an equal weight rating on the apparel retailer's stock.

Other analysts have also issued reports about the company. Citigroup lifted their price target on American Eagle Outfitters from $11.00 to $15.00 and gave the stock a "neutral" rating in a research note on Thursday, September 4th. Jefferies Financial Group increased their target price on American Eagle Outfitters from $11.00 to $17.00 and gave the stock a "hold" rating in a research note on Thursday, September 4th. Bank of America reissued an "underperform" rating and set a $10.00 price target (down previously from $11.00) on shares of American Eagle Outfitters in a research report on Monday, August 25th. Wall Street Zen upgraded American Eagle Outfitters from a "hold" rating to a "buy" rating in a report on Saturday, September 13th. Finally, Barclays raised their price objective on American Eagle Outfitters from $9.00 to $14.00 and gave the company an "underweight" rating in a research report on Thursday, September 4th. One investment analyst has rated the stock with a Buy rating, nine have issued a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat.com, American Eagle Outfitters currently has a consensus rating of "Reduce" and a consensus price target of $14.72.

American Eagle Outfitters Stock Performance

Shares of American Eagle Outfitters stock traded down $0.85 during trading hours on Thursday, reaching $18.87. 11,335,539 shares of the stock traded hands, compared to its average volume of 17,952,220. The company has a 50 day moving average price of $13.68 and a 200 day moving average price of $11.85. The firm has a market capitalization of $3.20 billion, a price-to-earnings ratio of 18.14 and a beta of 1.45. The company has a quick ratio of 0.71, a current ratio of 1.62 and a debt-to-equity ratio of 0.13. American Eagle Outfitters has a one year low of $9.27 and a one year high of $22.63.

American Eagle Outfitters (NYSE:AEO - Get Free Report) last issued its quarterly earnings data on Wednesday, September 3rd. The apparel retailer reported $0.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.20 by $0.25. American Eagle Outfitters had a return on equity of 13.67% and a net margin of 3.74%.The business had revenue of $1.28 billion for the quarter, compared to analysts' expectations of $1.23 billion. During the same period in the prior year, the firm earned $0.39 EPS. The company's revenue for the quarter was down .6% on a year-over-year basis. On average, equities research analysts expect that American Eagle Outfitters will post 1.7 earnings per share for the current fiscal year.

American Eagle Outfitters Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 29th. Stockholders of record on Friday, October 10th will be issued a dividend of $0.125 per share. This represents a $0.50 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date is Friday, October 10th. American Eagle Outfitters's dividend payout ratio (DPR) is currently 48.08%.

Insiders Place Their Bets

In other American Eagle Outfitters news, Director Janice E. Page sold 26,869 shares of the business's stock in a transaction that occurred on Monday, September 8th. The shares were sold at an average price of $18.04, for a total value of $484,716.76. Following the completion of the transaction, the director owned 90,383 shares of the company's stock, valued at $1,630,509.32. The trade was a 22.92% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Jennifer M. Foyle sold 54,950 shares of the company's stock in a transaction on Monday, September 8th. The shares were sold at an average price of $18.14, for a total transaction of $996,793.00. Following the completion of the sale, the insider directly owned 221,107 shares of the company's stock, valued at $4,010,880.98. This trade represents a 19.91% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 135,821 shares of company stock valued at $2,465,436. Company insiders own 8.70% of the company's stock.

Institutional Investors Weigh In On American Eagle Outfitters

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Osaic Holdings Inc. raised its holdings in American Eagle Outfitters by 220.5% during the 2nd quarter. Osaic Holdings Inc. now owns 13,931 shares of the apparel retailer's stock valued at $134,000 after buying an additional 9,584 shares during the last quarter. PVG Asset Management Corp bought a new position in shares of American Eagle Outfitters in the 2nd quarter worth about $121,000. Orion Porfolio Solutions LLC increased its stake in shares of American Eagle Outfitters by 21.7% in the 2nd quarter. Orion Porfolio Solutions LLC now owns 77,340 shares of the apparel retailer's stock worth $744,000 after acquiring an additional 13,771 shares in the last quarter. Caxton Associates LLP grew its position in American Eagle Outfitters by 212.2% during the 2nd quarter. Caxton Associates LLP now owns 230,312 shares of the apparel retailer's stock valued at $2,216,000 after purchasing an additional 156,544 shares during the last quarter. Finally, FORA Capital LLC grew its position in American Eagle Outfitters by 377.4% during the 2nd quarter. FORA Capital LLC now owns 151,213 shares of the apparel retailer's stock valued at $1,455,000 after purchasing an additional 119,540 shares during the last quarter. 97.33% of the stock is currently 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.