American Eagle Outfitters (NYSE:AEO) Trading Down 5.5% - Here's What Happened

Key Points

• American Eagle Outfitters' stock dropped 5.5% during trading, closing at $17.78, a significant decline compared to its previous close of $18.81.
• Wall Street experts have mixed opinions on the stock, with one analyst upgrading it to a "hold" and others adjusting target prices between $10.00 and $21.50.
• The company reported better-than-expected quarterly earnings, with $0.45 earnings per share exceeding analyst estimates of $0.20 despite a slight revenue decline year-over-year.

American Eagle Outfitters, Inc. (NYSE:AEO - Get Free Report)'s stock price dropped 5.5% during trading on Monday . The stock traded as low as $17.83 and last traded at $17.78. Approximately 6,207,102 shares were traded during mid-day trading, a decline of 34% from the average daily volume of 9,389,223 shares. The stock had previously closed at $18.81.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the stock. Wall Street Zen upgraded shares of American Eagle Outfitters from a "sell" rating to a "hold" rating in a research report on Friday. Barclays raised their target price on shares of American Eagle Outfitters from $9.00 to $14.00 and gave the company an "underweight" rating in a research note on Thursday. UBS Group raised their price target on shares of American Eagle Outfitters from $19.00 to $21.50 and gave the stock a "buy" rating in a research report on Thursday. Zacks Research raised shares of American Eagle Outfitters to a "hold" rating in a report on Monday, August 11th. Finally, Bank of America reaffirmed an "underperform" rating and set a $10.00 price objective (down from $11.00) on shares of American Eagle Outfitters in a report on Monday, August 25th. One equities research analyst has rated the stock with a Buy rating, eight have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Reduce" and a consensus target price of $13.94.

American Eagle Outfitters Stock Performance

The company has a debt-to-equity ratio of 0.13, a current ratio of 1.62 and a quick ratio of 0.71. The company has a market capitalization of $3.17 billion, a P/E ratio of 17.59 and a beta of 1.44. The stock's 50 day simple moving average is $11.86 and its two-hundred day simple moving average is $11.42.

American Eagle Outfitters (NYSE:AEO - Get Free Report) last issued its quarterly earnings data on Wednesday, September 3rd. The apparel retailer reported $0.45 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.20 by $0.25. The firm had revenue of $1.28 billion during 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 business's revenue for the quarter was down .6% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.39 earnings per share. As a group, research analysts expect that American Eagle Outfitters, Inc. will post 1.7 earnings per share for the current year.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. 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 worth $27,000 after purchasing an additional 1,841 shares during the last quarter. State of Wyoming bought a new stake in American Eagle Outfitters during the fourth quarter worth $49,000. Raymond James Financial Inc. bought a new stake in American Eagle Outfitters during the second quarter worth $35,000. Federated Hermes Inc. lifted its stake 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 worth $37,000 after buying an additional 2,315 shares during the last quarter. Finally, Asset Management One Co. Ltd. lifted its stake in shares of 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 buying an additional 1,165 shares during the last quarter. Institutional investors and hedge funds 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.

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