American Eagle Outfitters (NYSE:AEO) Raised to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded American Eagle Outfitters from hold to buy, adding a more positive view to a stock that still has mostly neutral analyst sentiment overall.
• The broader analyst consensus remains Hold, with 1 Buy, 12 Holds, and 1 Sell, and a consensus price target of $20.36.
• American Eagle recently posted better-than-expected quarterly results, with EPS of $0.14 versus $0.11 expected and revenue of $1.20 billion, up 9.7% year over year.

American Eagle Outfitters (NYSE:AEO - Get Free Report) was upgraded by stock analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued to investors on Saturday.

Other equities analysts have also issued reports about the company. Needham & Company LLC initiated coverage on American Eagle Outfitters in a research note on Thursday, March 26th. They issued a "hold" rating on the stock. JPMorgan Chase & Co. reduced their price objective on shares of American Eagle Outfitters from $25.00 to $19.00 and set a "neutral" rating for the company in a research report on Friday, May 29th. Citigroup lowered 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 research note on Monday, June 1st. UBS Group dropped their target price on shares of American Eagle Outfitters from $35.00 to $31.00 and set a "buy" rating on the stock in a research report on Friday, May 29th. Finally, Barclays cut their target price on shares of American Eagle Outfitters from $19.00 to $17.00 and set an "equal weight" rating on the stock in a research note on Friday, May 29th. One research analyst has rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, American Eagle Outfitters currently has a consensus rating of "Hold" and a consensus target price of $20.36.

American Eagle Outfitters Stock Performance

AEO stock opened at $16.49 on Friday. The stock has a 50-day moving average price of $16.99 and a 200-day moving average price of $20.55. American Eagle Outfitters has a 1-year low of $9.58 and a 1-year high of $28.46. 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 $2.76 billion, a PE ratio of 10.18, a price-to-earnings-growth ratio of 3.58 and a beta of 1.31.

American Eagle Outfitters (NYSE:AEO - Get Free Report) last announced its quarterly earnings data on Thursday, May 28th. The apparel retailer reported $0.14 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.11 by $0.03. American Eagle Outfitters had a return on equity of 20.95% and a net margin of 5.01%.The company had revenue of $1.20 billion for the quarter, compared to the consensus estimate of $1.18 billion. During the same period in the previous year, the business earned ($0.29) EPS. The firm's revenue was up 9.7% compared to the same quarter last year. As a group, equities research analysts expect that American Eagle Outfitters will post 1.77 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Noel Joseph Spiegel sold 2,887 shares of the company'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 SEC, which can be accessed through this hyperlink. Also, Director Cary D. Mcmillan sold 2,887 shares of the stock in a transaction on Monday, April 6th. The stock was 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. Company insiders own 8.95% of the company's stock.

Institutional Trading of American Eagle Outfitters

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Quadrant Capital Group LLC grew its holdings in shares of American Eagle Outfitters by 31.8% during the fourth quarter. Quadrant Capital Group LLC now owns 1,852 shares of the apparel retailer's stock valued at $49,000 after buying an additional 447 shares during the last quarter. Cambria Investment Management L.P. raised its holdings 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 worth $184,000 after acquiring an additional 468 shares during the last quarter. Strategic Investment Solutions Inc. IL raised its holdings 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 worth $26,000 after acquiring an additional 500 shares during the last quarter. Los Angeles Capital Management LLC lifted its position in 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 in the last quarter. Finally, EverSource Wealth Advisors LLC lifted its position in American Eagle Outfitters by 31.9% in the 1st quarter. EverSource Wealth Advisors LLC now owns 2,870 shares of the apparel retailer's stock valued at $48,000 after acquiring an additional 694 shares in the last quarter. 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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