American Eagle Outfitters (NYSE:AEO) Stock Price Up 4.6% - Time to Buy?

Key Points

• American Eagle Outfitters' stock price increased by 4.6% to $11.80, although trading volume dropped significantly to approximately 3.14 million shares.
• Analysts have two sell ratings, ten hold ratings, and one buy rating, with a consensus target price of $14.70.
• The company reported a quarterly loss with an EPS of ($0.29), missing expectations and showing a year-over-year revenue decline of 4.7%.
• American Eagle Outfitters announced a quarterly dividend of $0.125, yielding 4.25%, set for payment on July 25th.

American Eagle Outfitters, Inc. (NYSE:AEO - Get Free Report)'s share price rose 4.6% during trading on Friday . The stock traded as high as $11.98 and last traded at $11.80. Approximately 3,141,226 shares traded hands during trading, a decline of 56% from the average daily volume of 7,191,468 shares. The stock had previously closed at $11.28.

Analysts Set New Price Targets

AEO has been the subject of several recent research reports. JPMorgan Chase & Co. dropped their target price on shares of American Eagle Outfitters from $10.00 to $9.00 and set a "neutral" rating for the company in a research report on Wednesday, May 14th. Morgan Stanley set a $10.00 target price on shares of American Eagle Outfitters and gave the company an "equal weight" rating in a research report on Monday, June 2nd. Cfra Research cut shares of American Eagle Outfitters from a "moderate buy" rating to a "hold" rating in a research report on Friday, June 6th. Wall Street Zen cut shares of American Eagle Outfitters from a "hold" rating to a "sell" rating in a research report on Saturday, June 7th. Finally, BMO Capital Markets reduced 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 report on Wednesday, May 14th. Two analysts have rated the stock with a sell rating, ten have assigned a hold rating and one has issued a buy rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $14.70.

American Eagle Outfitters Price Performance

The company's 50-day moving average price is $10.28 and its 200-day moving average price is $12.03. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.38 and a quick ratio of 0.56. The company has a market cap of $2.04 billion, a P/E ratio of 12.01 and a beta of 1.45.

American Eagle Outfitters (NYSE:AEO - Get Free Report) last issued its quarterly earnings data 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 13.34% and a net margin of 3.73%. The company had revenue of $1.09 billion for the quarter, compared to the consensus estimate of $1.08 billion. During the same period in the prior year, the company earned $0.34 EPS. The firm's revenue was down 4.7% on a year-over-year basis. As a group, sell-side analysts predict that American Eagle Outfitters, Inc. will post 1.7 earnings per share for the current fiscal year.

American Eagle Outfitters Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, July 25th. Stockholders of record on Friday, July 11th were given a dividend of $0.125 per share. This represents a $0.50 annualized dividend and a dividend yield of 4.25%. The ex-dividend date was Friday, July 11th. American Eagle Outfitters's dividend payout ratio is 51.02%.

Institutional Trading of American Eagle Outfitters

A number of institutional investors have recently made changes to their positions in AEO. GAMMA Investing LLC increased its stake in American Eagle Outfitters by 380.4% in the 1st quarter. GAMMA Investing LLC now owns 2,325 shares of the apparel retailer's stock valued at $27,000 after buying an additional 1,841 shares during the last quarter. Huntington National Bank increased its stake in American Eagle Outfitters by 258.8% in the 4th quarter. Huntington National Bank now owns 2,045 shares of the apparel retailer's stock valued at $34,000 after buying an additional 1,475 shares during the last quarter. Asset Management One Co. Ltd. increased its stake in American Eagle Outfitters by 38.7% in the 1st quarter. Asset Management One Co. Ltd. now owns 4,173 shares of the apparel retailer's stock valued at $48,000 after buying an additional 1,165 shares during the last quarter. State of Wyoming acquired a new stake in American Eagle Outfitters in the 4th quarter valued at $49,000. Finally, AlphaQuest LLC increased its stake in American Eagle Outfitters by 654,400.0% in the 1st quarter. AlphaQuest LLC now owns 6,545 shares of the apparel retailer's stock valued at $76,000 after buying an additional 6,544 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.