American Eagle Outfitters (NYSE:AEO) Cut to "Hold" at Zacks Research

Key Points

• Zacks Research downgraded American Eagle Outfitters to “Hold” from “Strong Buy.” The broader analyst consensus is also “Hold,” with a target price of $19.55.
• American Eagle reported quarterly EPS of $0.79, substantially exceeding the $0.22 consensus estimate, while revenue reached $1.38 billion and rose 7.5% year over year.
• The stock opened at $18.11, near its analyst target, while insiders sold 13,013 shares worth approximately $229,350 over the past three months; institutional investors own 97.33% of the company.

American Eagle Outfitters (NYSE:AEO - Get Free Report) was downgraded by Zacks Research from a "strong-buy" rating to a "hold" rating in a report issued on Thursday, Zacks reports.

Several other brokerages have also issued reports on AEO. Weiss Ratings upgraded American Eagle Outfitters from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday. Telsey Advisory Group dropped their target price on American Eagle Outfitters from $20.00 to $18.00 and set a "market perform" rating on the stock in a research report on Thursday, September 10th. William Blair reaffirmed a "buy" rating on shares of American Eagle Outfitters in a research note on Wednesday, July 15th. JPMorgan Chase & Co. lifted their price target on American Eagle Outfitters from $19.00 to $21.00 and gave the company a "neutral" rating in a report on Tuesday, August 18th. Finally, Wall Street Zen raised American Eagle Outfitters from a "hold" rating to a "buy" rating in a research note on Saturday, September 5th. Two equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, American Eagle Outfitters has a consensus rating of "Hold" and a consensus target price of $19.55.

American Eagle Outfitters Stock Performance

Shares of AEO opened at $18.11 on Thursday. The company's 50 day moving average price is $16.78 and its 200 day moving average price is $17.04. American Eagle Outfitters has a 52 week low of $14.06 and a 52 week high of $28.46. The company has a market capitalization of $3.04 billion, a PE ratio of 9.24, a PEG ratio of 4.10 and a beta of 1.28. The company has a debt-to-equity ratio of 0.03, a quick ratio of 0.62 and a current ratio of 1.59.

American Eagle Outfitters (NYSE:AEO - Get Free Report) last released its earnings results on Wednesday, September 9th. The apparel retailer reported $0.79 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.22 by $0.57. The company had revenue of $1.38 billion during the quarter, compared to the consensus estimate of $1.37 billion. American Eagle Outfitters had a net margin of 5.91% and a return on equity of 23.63%. The company's revenue was up 7.5% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.45 EPS. Research analysts expect that American Eagle Outfitters will post 2.24 EPS for the current fiscal year.

Insider Buying and Selling

In other American Eagle Outfitters news, Director David M. Sable sold 5,779 shares of the firm's stock in a transaction dated Friday, July 17th. The stock was sold at an average price of $17.23, for a total transaction of $99,572.17. Following the transaction, the director directly owned 53,481 shares in the company, valued at $921,477.63. This trade represents a 9.75% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Cary McMillan sold 3,617 shares of the business's stock in a transaction dated Tuesday, October 6th. The stock was sold at an average price of $18.20, for a total value of $65,829.40. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 13,013 shares of company stock worth $229,350. Corporate insiders own 8.95% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. GAMMA Investing LLC grew its holdings in American Eagle Outfitters by 52.5% during the third quarter. GAMMA Investing LLC now owns 4,329 shares of the apparel retailer's stock valued at $77,000 after purchasing an additional 1,491 shares during the last quarter. Farther Finance Advisors LLC lifted its stake in shares of American Eagle Outfitters by 26.9% in the third quarter. Farther Finance Advisors LLC now owns 12,564 shares of the apparel retailer's stock worth $223,000 after buying an additional 2,661 shares during the last quarter. Nykredit A S acquired a new stake in shares of American Eagle Outfitters in the second quarter worth $33,253,000. Parkside Financial Bank & Trust boosted its holdings in shares of American Eagle Outfitters by 772.7% during the 2nd quarter. Parkside Financial Bank & Trust now owns 3,997 shares of the apparel retailer's stock worth $69,000 after buying an additional 3,539 shares during the period. Finally, Corient Private Wealth LP bought a new stake in shares of American Eagle Outfitters during the 2nd quarter worth $2,820,000. Institutional investors and hedge funds own 97.33% of the company's stock.

American Eagle Outfitters Company Profile

American Eagle Outfitters, Inc is a specialty retailer focused on apparel, accessories and personal-care products. The company operates primarily through the American Eagle and Aerie brands, offering casual clothing, denim, footwear and accessories, as well as intimates, activewear and lifestyle products.

American Eagle serves teenagers and young adults, while Aerie focuses on intimates, activewear and loungewear. The company sells its products through a network of retail stores, brand websites and other digital channels in the United States and internationally.

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