American Eagle Outfitters (NYSE:AEO) Trading Down 6.6% - What's Next?

Key Points

• American Eagle Outfitters' stock price declined by 6.6% to close at $12.62, with trading volume significantly down by 55% from the average session.
• Around three analysts have rated the stock as a sell, while the consensus rating remains a "hold" with a price target of $14.70.
• The company reported a quarterly revenue of $1.09 billion but missed earnings expectations, indicating a challenging financial landscape.

Shares of American Eagle Outfitters, Inc. (NYSE:AEO - Get Free Report) dropped 6.6% during trading on Thursday . The company traded as low as $12.48 and last traded at $12.62. Approximately 3,758,974 shares traded hands during trading, a decline of 55% from the average daily volume of 8,338,410 shares. The stock had previously closed at $13.52.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on AEO shares. BMO Capital Markets dropped their price target on shares of American Eagle Outfitters from $15.00 to $11.00 and set a "market perform" rating on the stock in a research note on Wednesday, May 14th. Barclays lowered their price objective on shares of American Eagle Outfitters from $10.00 to $9.00 and set an "underweight" rating for the company in a research report on Monday, May 12th. Morgan Stanley set a $10.00 price target on American Eagle Outfitters and gave the stock an "equal weight" rating in a report on Monday, June 2nd. Wall Street Zen downgraded shares of American Eagle Outfitters from a "hold" rating to a "sell" rating in a research report on Saturday, June 7th. Finally, Telsey Advisory Group boosted their price objective on shares of American Eagle Outfitters to $12.00 and gave the stock a "hold" rating in a research note on Friday, May 30th. Three investment analysts have rated the stock with a sell rating, ten have issued a hold rating and one has issued a buy rating to the company. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $14.70.

American Eagle Outfitters Stock Down 0.9%

The business's 50 day moving average is $10.72 and its 200 day moving average is $11.56. The company has a market capitalization of $2.23 billion, a price-to-earnings ratio of 13.16 and a beta of 1.51. The company has a debt-to-equity ratio of 0.07, a quick ratio of 0.56 and a current ratio of 1.38.

American Eagle Outfitters (NYSE:AEO - Get Free Report) last posted its quarterly earnings data on Thursday, May 29th. The apparel retailer reported ($0.29) earnings per share for the quarter, missing analysts' consensus estimates of ($0.25) by ($0.04). The company had revenue of $1.09 billion for the quarter, compared to analysts' expectations of $1.08 billion. American Eagle Outfitters had a return on equity of 13.34% and a net margin of 3.73%. The firm's revenue was down 4.7% compared to the same quarter last year. During the same period in the prior year, the company posted $0.34 EPS. Sell-side analysts anticipate 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 declared a quarterly dividend, which was paid on Friday, July 25th. Investors of record on Friday, July 11th were issued a $0.125 dividend. This represents a $0.50 annualized dividend and a yield of 3.9%. The ex-dividend date was Friday, July 11th. American Eagle Outfitters's dividend 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 AEO. Wealth Enhancement Advisory Services LLC boosted its holdings in American Eagle Outfitters by 319.2% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 44,570 shares of the apparel retailer's stock valued at $518,000 after purchasing an additional 33,938 shares in the last quarter. GAMMA Investing LLC boosted its holdings 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 purchasing an additional 1,841 shares in the last quarter. Rhumbline Advisers boosted its holdings in American Eagle Outfitters by 0.7% during the first quarter. Rhumbline Advisers now owns 528,510 shares of the apparel retailer's stock valued at $6,141,000 after purchasing an additional 3,631 shares in the last quarter. Janney Montgomery Scott LLC bought a new position in shares of American Eagle Outfitters in the first quarter valued at approximately $440,000. Finally, Asset Management One Co. Ltd. grew its position 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 during the last quarter. Institutional investors own 97.33% of the company's stock.

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.