American Eagle Outfitters (NYSE:AEO) Stock Price Down 4.2% - What's Next?

Key Points

• Shares of American Eagle Outfitters (NYSE:AEO) fell by 4.2% on Monday, closing at $16.22 after trading as low as $16.18 and experiencing a significant decline in volume.
• Despite the recent stock dip, analysts have mixed predictions with UBS raising their target price to $21.50 while others maintain lower projections; overall, the consensus rating remains a Hold.
• The company reported quarterly earnings of $0.45 per share, exceeding estimates, but revenue experienced a slight decline of 0.6% year-over-year, emphasizing the challenges faced in the retail sector.

Shares of American Eagle Outfitters, Inc. (NYSE:AEO - Get Free Report) traded down 4.2% on Monday . The company traded as low as $16.18 and last traded at $16.22. 1,165,741 shares traded hands during trading, a decline of 88% from the average session volume of 9,449,519 shares. The stock had previously closed at $16.94.

Analyst Upgrades and Downgrades

AEO has been the topic of a number of research reports. UBS Group upped their target price on American Eagle Outfitters from $19.00 to $21.50 and gave the stock a "buy" rating in a research report on Thursday, September 4th. Morgan Stanley upped their price objective on shares of American Eagle Outfitters from $10.00 to $17.00 and gave the stock an "equal weight" rating in a report on Thursday, September 18th. Citigroup lifted their price objective on shares of American Eagle Outfitters from $11.00 to $15.00 and gave the company a "neutral" rating in a report on Thursday, September 4th. Zacks Research upgraded shares of American Eagle Outfitters to a "hold" rating in a report on Monday, August 11th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of American Eagle Outfitters in a research note on Saturday, September 27th. One research analyst has rated the stock with a Buy rating, ten have issued a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Reduce" and an average price target of $14.72.

American Eagle Outfitters Price Performance

The business has a 50 day simple moving average of $15.09 and a 200-day simple moving average of $12.25. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.71 and a current ratio of 1.62. The stock has a market cap of $2.67 billion, a P/E ratio of 15.14 and a beta of 1.60.

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

American Eagle Outfitters Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 29th. Stockholders of record on Friday, October 10th will be paid a dividend of $0.125 per share. The ex-dividend date is Friday, October 10th. This represents a $0.50 annualized dividend and a dividend yield of 3.2%. American Eagle Outfitters's dividend payout ratio is presently 48.08%.

Insider Buying and Selling at American Eagle Outfitters

In other American Eagle Outfitters news, Director Janice E. Page sold 26,869 shares of the stock in a transaction dated Monday, September 8th. The shares were sold at an average price of $18.04, for a total transaction of $484,716.76. Following the completion of the transaction, the director owned 90,383 shares in the company, valued at $1,630,509.32. This trade represents a 22.92% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director David M. Sable sold 5,000 shares of the firm's stock in a transaction that occurred on Thursday, September 11th. The stock was sold at an average price of $19.22, for a total transaction of $96,100.00. Following the completion of the transaction, the director directly owned 48,640 shares of the company's stock, valued at approximately $934,860.80. This trade represents a 9.32% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 135,821 shares of company stock valued at $2,465,436. Insiders own 8.70% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in AEO. GAMMA Investing LLC grew its stake in American Eagle Outfitters by 380.4% during the first quarter. GAMMA Investing LLC now owns 2,325 shares of the apparel retailer's stock valued at $27,000 after acquiring an additional 1,841 shares in the last quarter. Raymond James Financial Inc. bought a new position in American Eagle Outfitters in the 2nd quarter valued at $35,000. Federated Hermes Inc. grew its position in shares of American Eagle Outfitters by 151.0% during the 2nd quarter. Federated Hermes Inc. now owns 3,848 shares of the apparel retailer's stock valued at $37,000 after purchasing an additional 2,315 shares in the last quarter. Asset Management One Co. Ltd. increased its holdings in shares of American Eagle Outfitters by 38.7% in the first quarter. Asset Management One Co. Ltd. now owns 4,173 shares of the apparel retailer's stock worth $48,000 after purchasing an additional 1,165 shares during the period. Finally, DekaBank Deutsche Girozentrale raised its position in shares of American Eagle Outfitters by 220.5% in the second quarter. DekaBank Deutsche Girozentrale now owns 5,843 shares of the apparel retailer's stock worth $58,000 after buying an additional 4,020 shares in 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 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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