American Eagle Outfitters (NYSE:AEO) Trading 7% Higher - Here's What Happened

Key Points

• Shares rose about 7%, trading as high as $18.96 (last $19.015) on Wednesday with mid-day volume ~2.46M shares, down ~57% from the stock's average daily volume.
• American Eagle beat quarterly estimates with EPS $0.84 vs $0.71 expected and revenue $1.81B (up 12.2% YoY), and announced a $0.125 quarterly dividend (annualized $0.50, yield ~2.6%; ex-dividend April 10, payable April 24).
• Analyst coverage is mixed: the MarketBeat consensus rating is "Reduce" with an average target of $21.75 (one Buy, thirteen Hold, two Sell), though individual price targets and ratings vary widely.

American Eagle Outfitters, Inc. (NYSE:AEO - Get Free Report)'s stock price rose 7% on Wednesday . The company traded as high as $18.96 and last traded at $19.0150. Approximately 2,463,378 shares changed hands during mid-day trading, a decline of 57% from the average daily volume of 5,741,521 shares. The stock had previously closed at $17.77.

Analyst Ratings Changes

AEO has been the subject of a number of research reports. Zacks Research downgraded shares of American Eagle Outfitters from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, March 10th. TD Cowen dropped their target price on American Eagle Outfitters from $27.00 to $21.00 and set a "hold" rating on the stock in a research report on Friday, March 6th. Citigroup increased their target price on shares of American Eagle Outfitters from $23.00 to $24.00 and gave the stock a "neutral" rating in a research note on Friday, March 6th. Weiss Ratings restated a "hold (c+)" rating on shares of American Eagle Outfitters in a research report on Wednesday, March 25th. Finally, UBS Group increased their price objective on American Eagle Outfitters from $31.00 to $35.00 and gave the stock a "buy" rating in a research report on Thursday, January 8th. One research analyst has rated the stock with a Buy rating, thirteen have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Reduce" and an average target price of $21.75.

American Eagle Outfitters Stock Up 6.6%

The company has a market capitalization of $3.16 billion, a PE ratio of 16.91, a price-to-earnings-growth ratio of 1.28 and a beta of 1.50. The firm's 50-day moving average is $20.25 and its 200-day moving average is $20.91.

American Eagle Outfitters (NYSE:AEO - Get Free Report) last released its quarterly earnings results on Wednesday, March 4th. The apparel retailer reported $0.84 earnings per share for the quarter, beating analysts' consensus estimates of $0.71 by $0.13. American Eagle Outfitters had a return on equity of 16.76% and a net margin of 3.49%.The business had revenue of $1.81 billion for the quarter, compared to the consensus estimate of $1.74 billion. During the same quarter last year, the business posted $0.54 earnings per share. The company's revenue for the quarter was up 12.2% on a year-over-year basis. As a group, equities research analysts predict that American Eagle Outfitters, Inc. will post 1.7 EPS for the current year.

American Eagle Outfitters Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, April 24th. Investors of record on Friday, April 10th will be given a $0.125 dividend. The ex-dividend date is Friday, April 10th. This represents a $0.50 dividend on an annualized basis and a yield of 2.6%. American Eagle Outfitters's payout ratio is presently 44.64%.

Insider Activity at American Eagle Outfitters

In other American Eagle Outfitters news, Director Cary D. Mcmillan sold 2,887 shares of the stock in a transaction that occurred on Monday, April 6th. The shares were sold at an average price of $17.23, for a total transaction of $49,743.01. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Noel Joseph Spiegel sold 2,887 shares of American Eagle Outfitters 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 disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 7,670 shares of company stock valued at $148,397. 8.70% of the stock is owned by insiders.

Institutional Trading of American Eagle Outfitters

Several hedge funds have recently added to or reduced their stakes in AEO. Quadrant Capital Group LLC grew its stake 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. boosted its holdings in American Eagle Outfitters by 4.5% during the 3rd quarter. Cambria Investment Management L.P. now owns 10,777 shares of the apparel retailer's stock valued at $184,000 after acquiring an additional 468 shares during the period. Strategic Investment Solutions Inc. IL grew its position in American Eagle Outfitters by 50.0% during 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 grew its position in American Eagle Outfitters by 2.1% during the 4th quarter. Los Angeles Capital Management LLC now owns 25,363 shares of the apparel retailer's stock worth $669,000 after acquiring an additional 510 shares during the last quarter. Finally, PNC Financial Services Group Inc. increased its stake in American Eagle Outfitters by 4.8% in the 3rd quarter. PNC Financial Services Group Inc. now owns 14,855 shares of the apparel retailer's stock worth $254,000 after purchasing an additional 678 shares during the period. 97.33% of the stock is owned by institutional investors.

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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