American Eagle Outfitters (NYSE:AEO) Shares Gap Up - Time to Buy?

Key Points

• American Eagle Outfitters shares opened at $12.60 after closing the previous day at $12.18, indicating a positive market movement with a volume of 4,162,748 shares traded.
• Analysts have mixed ratings on AEO, with one Buy, nine Holds, three Sells, and an average consensus target price of $14.40, indicating cautious sentiment.
• The company reported a quarterly earnings miss with a loss of ($0.29) EPS, and a revenue of $1.09 billion, down 4.7% from the previous year.

American Eagle Outfitters, Inc. (NYSE:AEO - Get Free Report) shares gapped up before the market opened on Wednesday . The stock had previously closed at $12.18, but opened at $12.60. American Eagle Outfitters shares last traded at $12.82, with a volume of 4,162,748 shares traded.

Wall Street Analyst Weigh In

AEO has been the topic of several analyst reports. Citigroup reaffirmed a "neutral" rating on shares of American Eagle Outfitters in a research report on Friday, May 23rd. Barclays decreased their target price on shares of American Eagle Outfitters from $10.00 to $9.00 and set an "underweight" rating on the stock in a report on Monday, May 12th. Cfra Research downgraded shares of American Eagle Outfitters from a "moderate buy" rating to a "hold" rating in a research note on Friday, June 6th. Morgan Stanley set a $10.00 target price on shares of American Eagle Outfitters and gave the stock an "equal weight" rating in a research report on Monday, June 2nd. Finally, Bank of America restated an "underperform" rating and issued a $10.00 price target (down previously from $11.00) on shares of American Eagle Outfitters in a research report on Monday. One research analyst has rated the stock with a Buy rating, nine have issued a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat.com, American Eagle Outfitters presently has an average rating of "Reduce" and a consensus target price of $14.40.

American Eagle Outfitters Price Performance

The firm has a market capitalization of $2.22 billion, a P/E ratio of 13.04 and a beta of 1.51. The company has a quick ratio of 0.56, a current ratio of 1.38 and a debt-to-equity ratio of 0.07. The business's 50-day simple moving average is $11.08 and its 200 day simple moving average is $11.43.

American Eagle Outfitters (NYSE:AEO - Get Free Report) last issued its quarterly earnings results on Thursday, May 29th. The apparel retailer reported ($0.29) earnings per share for the quarter, missing the consensus estimate of ($0.25) by ($0.04). The company had revenue of $1.09 billion for the quarter, compared to the consensus estimate of $1.08 billion. American Eagle Outfitters had a net margin of 3.73% and a return on equity of 13.34%. American Eagle Outfitters's revenue was down 4.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.34 earnings per share. American Eagle Outfitters has set its Q2 2025 guidance at EPS. Sell-side analysts forecast that American Eagle Outfitters, Inc. will post 1.7 earnings per share for the current year.

American Eagle Outfitters Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, July 25th. Stockholders of record on Friday, July 11th were given a dividend of $0.125 per share. The ex-dividend date of this dividend was Friday, July 11th. This represents a $0.50 annualized dividend and a dividend yield of 3.9%. American Eagle Outfitters's payout ratio is currently 51.02%.

Institutional Investors Weigh In On American Eagle Outfitters

A number of hedge funds have recently made changes to their positions in the stock. GAMMA Investing LLC increased its holdings in shares of American Eagle Outfitters by 380.4% in the first quarter. GAMMA Investing LLC now owns 2,325 shares of the apparel retailer's stock valued at $27,000 after purchasing an additional 1,841 shares during the period. State of Wyoming purchased a new position in shares of American Eagle Outfitters in the fourth quarter valued at approximately $49,000. Raymond James Financial Inc. purchased a new position in American Eagle Outfitters during the second quarter worth approximately $35,000. Federated Hermes Inc. lifted its stake in American Eagle Outfitters by 151.0% during the 2nd quarter. Federated Hermes Inc. now owns 3,848 shares of the apparel retailer's stock worth $37,000 after acquiring an additional 2,315 shares in the last quarter. Finally, Asset Management One Co. Ltd. lifted its stake in American Eagle Outfitters by 38.7% during the 1st quarter. Asset Management One Co. Ltd. now owns 4,173 shares of the apparel retailer's stock worth $48,000 after acquiring an additional 1,165 shares in the last quarter. 97.33% of the stock is currently owned by hedge funds and other institutional investors.

American Eagle Outfitters Company Profile

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.

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