American Eagle Outfitters (NYSE:AEO) Price Target Raised to $21.00

Key Points

• JPMorgan raised American Eagle Outfitters’ price target from $19 to $21 while maintaining a neutral rating, implying 26.66% upside from the prior close.
• Analyst sentiment remains cautious: American Eagle has an overall “Hold” consensus rating and an average price target of $20.09, with 12 holds, two buys and one sell.
• The company exceeded quarterly expectations, reporting $0.14 in EPS versus $0.11 expected and $1.20 billion in revenue, up 9.7% year over year; shares recently traded at $16.58.

American Eagle Outfitters (NYSE:AEO - Get Free Report) had its target price increased by investment analysts at JPMorgan Chase & Co. from $19.00 to $21.00 in a report issued on Tuesday,Benzinga reports. The brokerage currently has a "neutral" rating on the apparel retailer's stock. JPMorgan Chase & Co.'s price objective indicates a potential upside of 26.66% from the company's previous close.

Several other equities research analysts have also recently issued reports on the stock. Wall Street Zen cut shares of American Eagle Outfitters from a "buy" rating to a "hold" rating in a research note on Saturday. TD Cowen lowered their price target on shares of American Eagle Outfitters from $19.00 to $18.00 and set a "hold" rating on the stock in a research report on Monday, May 18th. Citigroup cut their price objective on shares of American Eagle Outfitters from $24.00 to $18.00 and set a "neutral" rating for the company in a report on Monday, June 1st. Morgan Stanley restated an "equal weight" rating and issued a $18.00 price target on shares of American Eagle Outfitters in a research report on Monday, July 6th. Finally, Bank of America reiterated an "underperform" rating and set a $16.00 price objective on shares of American Eagle Outfitters in a research report on Friday. Two research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, American Eagle Outfitters has an average rating of "Hold" and a consensus price target of $20.09.

American Eagle Outfitters Price Performance

NYSE:AEO traded up $0.23 during trading hours on Tuesday, reaching $16.58. 535,360 shares of the company were exchanged, compared to its average volume of 5,317,323. The company has a current ratio of 1.55, a quick ratio of 0.53 and a debt-to-equity ratio of 0.05. The firm has a market cap of $2.78 billion, a PE ratio of 10.23 and a beta of 1.32. American Eagle Outfitters has a twelve month low of $12.05 and a twelve month high of $28.46. The stock's 50-day moving average is $17.35 and its 200-day moving average is $18.51.

American Eagle Outfitters (NYSE:AEO - Get Free Report) last released its earnings results on Thursday, May 28th. The apparel retailer reported $0.14 EPS for the quarter, topping analysts' consensus estimates of $0.11 by $0.03. American Eagle Outfitters had a net margin of 5.01% and a return on equity of 20.95%. The business had revenue of $1.20 billion during the quarter, compared to analysts' expectations of $1.18 billion. During the same quarter in the previous year, the company earned ($0.29) earnings per share. The company's quarterly revenue was up 9.7% on a year-over-year basis. On average, sell-side analysts anticipate that American Eagle Outfitters will post 1.77 earnings per share for the current fiscal year.

Insider Buying and Selling at American Eagle Outfitters

In other American Eagle Outfitters news, Director Noel Joseph Spiegel sold 2,892 shares of the stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $16.78, for a total transaction of $48,527.76. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director David M. Sable sold 5,779 shares of the business's stock in a transaction that occurred on Friday, July 17th. The shares were sold at an average price of $17.23, for a total transaction of $99,572.17. Following the completion of the sale, the director directly owned 53,481 shares in the company, valued at $921,477.63. This trade represents a 9.75% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 11,563 shares of company stock valued at $196,599 over the last 90 days. 8.95% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Kemnay Advisory Services Inc. acquired a new position in American Eagle Outfitters during the 4th quarter worth $31,000. Aster Capital Management DIFC Ltd purchased a new stake in shares of American Eagle Outfitters during the fourth quarter worth approximately $32,000. Plato Investment Management Ltd acquired a new stake in American Eagle Outfitters in the second quarter valued at approximately $25,000. Farther Finance Advisors LLC raised its holdings in American Eagle Outfitters by 177.2% in the fourth quarter. Farther Finance Advisors LLC now owns 1,774 shares of the apparel retailer's stock valued at $47,000 after acquiring an additional 1,134 shares in the last quarter. Finally, Quadrant Capital Group LLC lifted 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 worth $49,000 after acquiring an additional 447 shares during the last quarter. 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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