American Eagle Outfitters (NYSE:AEO) Announces Quarterly Earnings Results, Beats Estimates By $0.57 EPS

Key Points

• American Eagle Outfitters reported quarterly EPS of $0.79, exceeding analyst expectations of $0.22 by $0.57. The company posted a 5.01% net margin and 20.95% return on equity.
• Shares fell 1.8% to $16.91 despite the earnings beat, with trading volume nearly three times the average. The stock remains well below its 52-week high of $28.46.
• Analysts maintain a consensus “Hold” rating with an average price target of $20.18, while insiders sold 11,563 shares worth approximately $196,599 over the past three months.

American Eagle Outfitters (NYSE:AEO - Get Free Report) issued its quarterly earnings data on Wednesday. The apparel retailer reported $0.79 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.22 by $0.57, Zacks reports. American Eagle Outfitters had a net margin of 5.01% and a return on equity of 20.95%.

American Eagle Outfitters Stock Down 1.8%

Shares of American Eagle Outfitters stock traded down $0.32 during trading on Wednesday, reaching $16.91. The company had a trading volume of 15,827,876 shares, compared to its average volume of 5,368,896. The company has a market cap of $2.83 billion, a price-to-earnings ratio of 10.44, a price-to-earnings-growth ratio of 3.80 and a beta of 1.33. The firm's fifty day moving average is $17.02 and its 200-day moving average is $17.68. 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 fifty-two week low of $14.06 and a fifty-two week high of $28.46.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the stock. The Goldman Sachs Group set a $22.00 target price on shares of American Eagle Outfitters in a research note on Monday, June 1st. TD Cowen cut 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. William Blair reissued a "buy" rating on shares of American Eagle Outfitters in a research report on Wednesday, July 15th. JPMorgan Chase & Co. lifted their target price on American Eagle Outfitters from $19.00 to $21.00 and gave the stock a "neutral" rating in a research report on Tuesday, August 18th. Finally, Barclays cut their price target on American Eagle Outfitters from $19.00 to $17.00 and set an "equal weight" rating on the stock in a research note on Friday, May 29th. Two research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $20.18.

Insider Buying and Selling

In other American Eagle Outfitters news, Director Noel Spiegel 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 $16.78, for a total transaction of $48,527.76. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director David M. Sable sold 5,779 shares of the stock in a transaction that occurred on Friday, July 17th. The stock was sold at an average price of $17.23, for a total value of $99,572.17. Following the transaction, the director directly owned 53,481 shares in the company, valued at approximately $921,477.63. This represents a 9.75% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 11,563 shares of company stock worth $196,599. Corporate insiders own 8.95% of the company's stock.

Institutional Investors Weigh In On American Eagle Outfitters

A number of institutional investors have recently made changes to their positions in the company. Marshall Wace LLP boosted its holdings in American Eagle Outfitters by 920.6% in the third quarter. Marshall Wace LLP now owns 5,497,720 shares of the apparel retailer's stock worth $94,066,000 after purchasing an additional 4,959,039 shares during the period. Balyasny Asset Management L.P. acquired a new stake in shares of American Eagle Outfitters during the fourth quarter worth $40,954,000. Arrowstreet Capital Limited Partnership lifted its position in shares of American Eagle Outfitters by 153.1% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 2,410,162 shares of the apparel retailer's stock worth $63,556,000 after buying an additional 1,457,785 shares during the last quarter. Nomura Holdings Inc. lifted its position in shares of American Eagle Outfitters by 110.7% in the 3rd quarter. Nomura Holdings Inc. now owns 49,909 shares of the apparel retailer's stock worth $854,000 after buying an additional 516,050 shares during the last quarter. Finally, Susquehanna Portfolio Strategies LLC bought a new stake in shares of American Eagle Outfitters during the 4th quarter valued at about $12,795,000. 97.33% of the stock is currently owned by institutional investors.

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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