American Eagle Outfitters (NYSE:AEO) Price Target Raised to $20.00

Key Points

• BMO Capital Markets raised American Eagle Outfitters’ price target to $20 from $18 while maintaining a “market perform” rating, implying 15.9% potential upside.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and average price target of $19.55; targets from other firms range from $17 to $27.
• American Eagle reported quarterly EPS of $0.79, well above the $0.22 consensus estimate, while revenue reached $1.38 billion, up 7.5% year over year.

American Eagle Outfitters (NYSE:AEO - Get Free Report) had its price target boosted by analysts at BMO Capital Markets from $18.00 to $20.00 in a research report issued to clients and investors on Tuesday, Benzinga reports. The brokerage currently has a "market perform" rating on the apparel retailer's stock. BMO Capital Markets' price target points to a potential upside of 15.90% from the stock's current price.

Several other equities analysts have also weighed in on the company. Telsey Advisory Group cut 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 note on Thursday, September 10th. Weiss Ratings restated a "hold (c)" rating on shares of American Eagle Outfitters in a research report on Thursday, August 27th. Zacks Research raised American Eagle Outfitters from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, September 9th. Morgan Stanley cut their price target on shares of American Eagle Outfitters from $18.00 to $17.00 and set an "equal weight" rating on the stock in a research report on Thursday, September 10th. Finally, UBS Group reduced their price objective on shares of American Eagle Outfitters from $31.00 to $27.00 and set a "buy" rating on the stock in a research note on Thursday, September 10th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $19.55.

American Eagle Outfitters Price Performance

Shares of AEO stock opened at $17.26 on Tuesday. The firm's 50 day moving average price is $16.70 and its two-hundred day moving average price is $17.02. 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 has a 52-week low of $14.06 and a 52-week high of $28.46. The stock has a market cap of $2.89 billion, a PE ratio of 8.80, a PEG ratio of 3.78 and a beta of 1.33.

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

Insider Activity at American Eagle Outfitters

In related news, Director Cary D. Mcmillan sold 2,892 shares of the stock in a transaction that occurred on Tuesday, July 7th. The stock was sold at an average price of $16.77, for a total transaction of $48,498.84. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Noel Spiegel sold 2,892 shares of American Eagle Outfitters stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $16.78, for a total transaction of $48,527.76. The SEC filing for this sale provides additional information. In the last three months, insiders sold 11,563 shares of company stock worth $196,599. 8.95% of the stock is owned by company insiders.

Hedge Funds Weigh In On American Eagle Outfitters

Hedge funds have recently made changes to their positions in the business. BlackRock Inc. acquired a new stake in shares of American Eagle Outfitters in the 2nd quarter valued at approximately $458,632,000. Goldman Sachs Group Inc. increased its holdings in American Eagle Outfitters by 12.8% during the fourth quarter. Goldman Sachs Group Inc. now owns 6,000,419 shares of the apparel retailer's stock worth $158,231,000 after buying an additional 680,332 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in American Eagle Outfitters by 5.8% during the first quarter. Dimensional Fund Advisors LP now owns 9,261,614 shares of the apparel retailer's stock worth $154,663,000 after buying an additional 509,326 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its position in American Eagle Outfitters by 162.9% during the first quarter. Arrowstreet Capital Limited Partnership now owns 6,336,392 shares of the apparel retailer's stock worth $105,818,000 after acquiring an additional 3,926,230 shares in the last quarter. Finally, Nykredit A S bought a new stake in American Eagle Outfitters during the second quarter worth $46,023,000. 97.33% of the stock is owned by institutional investors.

American Eagle Outfitters Company Profile

American Eagle Outfitters, Inc NYSE: AEO is a specialty retailer offering casual apparel, accessories and footwear for young women and men. Its product assortment includes jeans, tops, dresses, intimates, loungewear and activewear, with merchandise sold through company-operated stores and digital channels.

The company's principal brands include American Eagle, which focuses on casual lifestyle clothing and denim, and Aerie, which offers intimates, activewear and loungewear. Its brand portfolio has also included OFFLINE by Aerie, a performance and wellness-oriented line, and Todd Snyder, a menswear brand known for elevated casual clothing and tailoring.

Founded in 1977, American Eagle Outfitters is headquartered in Pittsburgh, Pennsylvania.

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