American Eagle Outfitters (NYSE:AEO) Shares Down 5.6% - Time to Sell?

Key Points

• American Eagle Outfitters' shares dropped 5.6% to $12.54, with trading volume down 42% from its average.
• Equity analysts have lowered price targets for the company, with Morgan Stanley setting a target of $10.00 and JPMorgan reaching as low as $9.00.
• The company's recent quarterly earnings showed a loss of ($0.29) per share, missing estimates and reflecting a 4.7% year-over-year revenue decline.

American Eagle Outfitters, Inc. (NYSE:AEO - Get Free Report) shares traded down 5.6% during mid-day trading on Tuesday . The company traded as low as $12.64 and last traded at $12.54. 4,587,382 shares traded hands during trading, a decline of 42% from the average session volume of 7,961,805 shares. The stock had previously closed at $13.28.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on the stock. JPMorgan Chase & Co. restated an "underweight" rating and issued a $9.00 price objective on shares of American Eagle Outfitters in a research report on Monday, July 28th. Telsey Advisory Group upped their price target on shares of American Eagle Outfitters to $12.00 and gave the stock a "hold" rating in a report on Friday, May 30th. Wall Street Zen cut shares of American Eagle Outfitters from a "hold" rating to a "sell" rating in a research note on Saturday, June 7th. BMO Capital Markets cut their price objective on shares of 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. Finally, Citigroup restated a "neutral" rating on shares of American Eagle Outfitters in a research report on Friday, May 23rd. Three analysts have rated the stock with a sell rating, nine have assigned a hold rating and one has issued a buy rating to the company. According to data from MarketBeat, American Eagle Outfitters presently has a consensus rating of "Hold" and an average price target of $14.70.

American Eagle Outfitters Stock Down 2.1%

The firm has a market capitalization of $2.17 billion, a PE ratio of 12.84 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. The company has a fifty day moving average price of $10.40 and a 200-day moving average price of $11.83.

American Eagle Outfitters (NYSE:AEO - Get Free Report) last announced 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 net margin of 3.73% and a return on equity of 13.34%. The business had revenue of $1.09 billion for the quarter, compared to analysts' expectations of $1.08 billion. During the same quarter last year, the firm earned $0.34 EPS. The firm's quarterly revenue was down 4.7% on a year-over-year basis. As a group, analysts expect that American Eagle Outfitters, Inc. will post 1.7 earnings per share for the current year.

American Eagle Outfitters Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 25th. Investors of record on Friday, July 11th were paid a $0.125 dividend. The ex-dividend date of this dividend was Friday, July 11th. This represents a $0.50 dividend on an annualized basis and a yield of 4.0%. American Eagle Outfitters's payout ratio is 51.02%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Junto Capital Management LP purchased a new stake in shares of American Eagle Outfitters during the 1st quarter worth $38,588,000. Millennium Management LLC boosted its holdings in shares of American Eagle Outfitters by 1,510.1% in the 4th quarter. Millennium Management LLC now owns 2,509,057 shares of the apparel retailer's stock valued at $41,826,000 after buying an additional 2,353,225 shares in the last quarter. Cooke & Bieler LP grew its position in shares of American Eagle Outfitters by 29.9% in the 1st quarter. Cooke & Bieler LP now owns 7,791,193 shares of the apparel retailer's stock worth $90,534,000 after buying an additional 1,794,203 shares during the last quarter. Vaughan Nelson Investment Management L.P. acquired a new position in American Eagle Outfitters during the 1st quarter valued at about $18,927,000. Finally, Nuveen LLC acquired a new position in shares of American Eagle Outfitters in the first quarter valued at about $18,140,000. 97.33% of the stock is currently owned by hedge funds and other institutional investors.

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.