Citigroup Issues Pessimistic Forecast for American Eagle Outfitters (NYSE:AEO) Stock Price

Key Points

• Citigroup cut American Eagle Outfitters’ price target to $18 from $24 while keeping a neutral rating, implying modest upside from the prior close. Other analysts have also trimmed targets, and the broader consensus remains Hold.
• AEO shares rose 2.8% to $16.25 on Monday, but the stock remains well below its 200-day moving average of $21.11. The company’s market cap is about $2.72 billion.
• The retailer recently posted better-than-expected quarterly results, with EPS of $0.14 versus $0.11 expected and revenue of $1.20 billion, up 9.7% year over year. However, insiders have sold shares, and analysts expect full-year EPS of 1.74.

American Eagle Outfitters (NYSE:AEO - Get Free Report) had its price target dropped by stock analysts at Citigroup from $24.00 to $18.00 in a note issued to investors on Monday,Benzinga reports. The firm presently has a "neutral" rating on the apparel retailer's stock. Citigroup's price target would indicate a potential upside of 10.80% from the company's previous close.

AEO has been the topic of a number of other reports. UBS Group dropped their target price on shares of American Eagle Outfitters from $35.00 to $31.00 and set a "buy" rating on the stock in a report on Friday. Bank of America dropped their target price on shares of American Eagle Outfitters from $20.00 to $16.00 and set an "underperform" rating on the stock in a report on Friday. Zacks Research cut shares of American Eagle Outfitters from a "strong-buy" rating to a "hold" rating in a report on Tuesday, March 10th. TD Cowen dropped their price objective on shares of American Eagle Outfitters from $19.00 to $18.00 and set a "hold" rating on the stock in a report on Monday, May 18th. Finally, The Goldman Sachs Group set a $22.00 price objective on shares of American Eagle Outfitters in a report on Monday. One equities research analyst has rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, American Eagle Outfitters currently has an average rating of "Hold" and a consensus price target of $20.36.

American Eagle Outfitters Stock Up 2.8%

Shares of AEO stock traded up $0.45 on Monday, hitting $16.25. The stock had a trading volume of 6,552,956 shares, compared to its average volume of 5,671,273. The firm has a market capitalization of $2.72 billion, a price-to-earnings ratio of 9.98, a P/E/G ratio of 1.13 and a beta of 1.34. The stock's 50 day moving average is $17.14 and its 200-day moving average is $21.11. The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.53 and a current ratio of 1.55. American Eagle Outfitters has a 52-week low of $9.27 and a 52-week high of $28.46.

American Eagle Outfitters (NYSE:AEO - Get Free Report) last announced its earnings results on Thursday, May 28th. The apparel retailer reported $0.14 earnings per share for the quarter, beating the consensus estimate of $0.11 by $0.03. The business had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.18 billion. American Eagle Outfitters had a net margin of 5.01% and a return on equity of 20.95%. The business's quarterly revenue was up 9.7% compared to the same quarter last year. During the same period in the prior year, the firm earned ($0.29) earnings per share. As a group, research analysts expect that American Eagle Outfitters will post 1.74 earnings per share for the current year.

Insider Activity

In other American Eagle Outfitters news, Director Cary D. Mcmillan sold 2,887 shares of the firm's stock in a transaction dated Monday, April 6th. The shares were sold at an average price of $17.23, for a total value of $49,743.01. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Noel Joseph Spiegel sold 2,887 shares of the firm's stock in a transaction dated Monday, April 6th. The stock was sold at an average price of $17.32, for a total transaction of $50,002.84. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 8.95% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Quadrant Capital Group LLC boosted its holdings in shares of American Eagle Outfitters by 31.8% in the fourth quarter. Quadrant Capital Group LLC now owns 1,852 shares of the apparel retailer's stock worth $49,000 after buying an additional 447 shares during the period. Cambria Investment Management L.P. lifted its position in shares of American Eagle Outfitters by 4.5% in the third quarter. Cambria Investment Management L.P. now owns 10,777 shares of the apparel retailer's stock worth $184,000 after purchasing an additional 468 shares in the last quarter. Strategic Investment Solutions Inc. IL lifted its position in shares of American Eagle Outfitters by 50.0% in the third quarter. Strategic Investment Solutions Inc. IL now owns 1,500 shares of the apparel retailer's stock worth $26,000 after purchasing an additional 500 shares in the last quarter. Los Angeles Capital Management LLC lifted its position in shares of American Eagle Outfitters by 2.1% in the fourth quarter. Los Angeles Capital Management LLC now owns 25,363 shares of the apparel retailer's stock worth $669,000 after purchasing an additional 510 shares in the last quarter. Finally, PNC Financial Services Group Inc. lifted its position in shares of American Eagle Outfitters by 4.8% in the third quarter. PNC Financial Services Group Inc. now owns 14,855 shares of the apparel retailer's stock worth $254,000 after purchasing an additional 678 shares in the last quarter. 97.33% of the stock is currently owned by institutional investors and hedge funds.

American Eagle Outfitters Company Profile

American Eagle Outfitters, Inc NYSE: AEO is a leading American specialty retailer offering apparel, accessories and personal care products for men and women. The company's flagship brand, American Eagle, focuses on casualwear including denim, tops, outerwear and accessories targeted primarily at teens and young adults. In addition to its core apparel lines, the company operates the Aerie brand of intimates, loungewear and swimwear, which has gained recognition for its body-positive marketing and inclusive sizing.

American Eagle Outfitters conducts business through a combination of over 900 brick-and-mortar stores in North America and Greater China, complemented by a growing e-commerce platform that serves customers around the globe.

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