American Eagle Outfitters (NYSE:AEO) Trading Down 5.2% After Analyst Downgrade

Shares of American Eagle Outfitters, Inc. (NYSE:AEO - Get Free Report) were down 5.2% on Monday after Morgan Stanley lowered their price target on the stock from $11.00 to $10.00. Morgan Stanley currently has an equal weight rating on the stock. American Eagle Outfitters traded as low as $10.44 and last traded at $10.40. Approximately 3,505,079 shares were traded during trading, a decline of 37% from the average daily volume of 5,600,862 shares. The stock had previously closed at $10.96.

Other equities research analysts also recently issued research reports about the company. Bank of America dropped their price objective on American Eagle Outfitters from $18.00 to $13.00 and set a "neutral" rating for the company in a report on Friday, March 14th. BMO Capital Markets decreased their target price on American Eagle Outfitters from $15.00 to $11.00 and set a "market perform" rating for the company in a research note on Wednesday, May 14th. Wall Street Zen cut American Eagle Outfitters from a "buy" rating to a "hold" rating in a research note on Wednesday, March 19th. Telsey Advisory Group boosted their target price on American Eagle Outfitters to $12.00 and gave the company a "hold" rating in a research note on Friday, May 30th. Finally, Citigroup reissued a "neutral" rating on shares of American Eagle Outfitters in a research note on Friday, May 23rd. One equities research analyst has rated the stock with a sell rating, ten have issued a hold rating and one has given a buy rating to the stock. According to data from MarketBeat, American Eagle Outfitters currently has an average rating of "Hold" and a consensus target price of $14.70.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of AEO. Barclays PLC boosted its position in shares of American Eagle Outfitters by 51.8% during the third quarter. Barclays PLC now owns 298,263 shares of the apparel retailer's stock worth $6,679,000 after buying an additional 101,795 shares during the period. Blue Trust Inc. raised its holdings in American Eagle Outfitters by 95.7% during the fourth quarter. Blue Trust Inc. now owns 1,916 shares of the apparel retailer's stock worth $32,000 after acquiring an additional 937 shares in the last quarter. KBC Group NV raised its holdings in American Eagle Outfitters by 35.1% during the fourth quarter. KBC Group NV now owns 14,120 shares of the apparel retailer's stock worth $235,000 after acquiring an additional 3,668 shares in the last quarter. Jennison Associates LLC bought a new stake in American Eagle Outfitters during the fourth quarter worth about $784,000. Finally, Alliance Wealth Advisors LLC UT bought a new stake in American Eagle Outfitters during the fourth quarter worth about $256,000. 97.33% of the stock is owned by institutional investors and hedge funds.

American Eagle Outfitters Stock Down 1.3%

The firm has a market cap of $1.78 billion, a P/E ratio of 8.77, a price-to-earnings-growth ratio of 0.82 and a beta of 1.52. The firm has a fifty day moving average of $11.04 and a 200-day moving average of $13.97.

American Eagle Outfitters (NYSE:AEO - Get Free Report) last released its earnings results on Thursday, May 29th. The apparel retailer reported ($0.29) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.25) by ($0.04). American Eagle Outfitters had a return on equity of 20.75% and a net margin of 4.28%. The company had revenue of $1.09 billion for the quarter, compared to the consensus estimate of $1.08 billion. During the same quarter in the previous year, the company posted $0.34 EPS. The business's revenue was down 4.7% on a year-over-year basis. On average, equities analysts forecast that American Eagle Outfitters, Inc. will post 1.7 EPS for the current year.

American Eagle Outfitters Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, July 25th. Investors of record on Friday, July 11th will be issued a dividend of $0.125 per share. This represents a $0.50 annualized dividend and a yield of 4.87%. American Eagle Outfitters's payout ratio is presently 51.02%.

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.