American Outdoor Brands (NASDAQ:AOUT) Trading Down 2.3% - Here's What Happened

Key Points

• American Outdoor Brands stock fell 2.3% during trading, closing at $7.22 after peaking at $7.39.
• Analysts are mixed on AOUT, with one maintaining a "buy" rating, while others have downgraded it to "hold" or "sell," leading to an average target price of $19.00.
• The company has initiated a $10 million share repurchase plan, indicating management's belief that the stock is undervalued.

American Outdoor Brands, Inc. (NASDAQ:AOUT - Get Free Report)'s share price was down 2.3% during mid-day trading on Wednesday . The stock traded as low as $7.19 and last traded at $7.22. Approximately 85,891 shares were traded during mid-day trading, an increase of 3% from the average daily volume of 82,990 shares. The stock had previously closed at $7.39.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on AOUT shares. Lake Street Capital reissued a "buy" rating and issued a $19.00 price target (down previously from $20.00) on shares of American Outdoor Brands in a report on Friday, June 27th. Zacks Research lowered shares of American Outdoor Brands from a "hold" rating to a "strong sell" rating in a report on Monday, September 29th. Wall Street Zen downgraded shares of American Outdoor Brands from a "buy" rating to a "hold" rating in a research note on Friday, September 5th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of American Outdoor Brands in a research note on Wednesday, October 8th. One equities research analyst has rated the stock with a Buy rating and two have given a Sell rating to the stock. According to MarketBeat, American Outdoor Brands currently has an average rating of "Reduce" and an average target price of $19.00.

American Outdoor Brands Trading Down 2.3%

The business's fifty day simple moving average is $8.88 and its 200 day simple moving average is $10.16. The stock has a market cap of $91.41 million, a P/E ratio of -19.51 and a beta of 0.30.

American Outdoor Brands (NASDAQ:AOUT - Get Free Report) last released its earnings results on Tuesday, April 18th. The company reported $0.52 earnings per share (EPS) for the quarter. American Outdoor Brands had a negative net margin of 2.16% and a positive return on equity of 2.00%. The company had revenue of $70.11 million for the quarter. On average, analysts predict that American Outdoor Brands, Inc. will post 0.36 earnings per share for the current fiscal year.

American Outdoor Brands declared that its board has initiated a share repurchase plan on Thursday, October 2nd that allows the company to buyback $10.00 million in outstanding shares. This buyback authorization allows the company to repurchase up to 9.3% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's management believes its stock is undervalued.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in AOUT. Geode Capital Management LLC lifted its position in American Outdoor Brands by 104.7% during the 2nd quarter. Geode Capital Management LLC now owns 293,683 shares of the company's stock valued at $3,070,000 after purchasing an additional 150,202 shares during the period. American Century Companies Inc. lifted its position in American Outdoor Brands by 307.6% during the 1st quarter. American Century Companies Inc. now owns 105,838 shares of the company's stock valued at $1,287,000 after purchasing an additional 79,869 shares during the period. Brandes Investment Partners LP lifted its position in American Outdoor Brands by 6.5% during the 2nd quarter. Brandes Investment Partners LP now owns 1,219,798 shares of the company's stock valued at $12,747,000 after purchasing an additional 74,107 shares during the period. Acadian Asset Management LLC lifted its position in American Outdoor Brands by 82.4% during the 1st quarter. Acadian Asset Management LLC now owns 157,704 shares of the company's stock valued at $1,913,000 after purchasing an additional 71,229 shares during the period. Finally, Jane Street Group LLC lifted its position in American Outdoor Brands by 76.5% during the 1st quarter. Jane Street Group LLC now owns 53,240 shares of the company's stock valued at $647,000 after purchasing an additional 23,070 shares during the period. 49.87% of the stock is currently owned by institutional investors and hedge funds.

About American Outdoor Brands

American Outdoor Brands, Inc provides outdoor products and accessories for rugged outdoor enthusiasts in the United States and internationally. It offers hunting, fishing, camping, shooting, and personal security and defense products. The company also provides shooting sports accessories products include rests, vaults, and other related accessories; outdoor lifestyle products, such as premium sportsmen knives and tools for fishing and hunting; land management tools for hunting preparedness; harvesting products for post-hunt or post-fishing activities; outdoor cooking products; and camping, survival, and emergency preparedness products.

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