542,808 Shares in American Eagle Outfitters, Inc. $AEO Acquired by Bank of America Corp DE

Key Points

• Bank of America acquired 542,808 American Eagle shares worth approximately $9.3 million, giving it a 0.32% stake. Institutional investors collectively own 97.33% of the retailer.
• American Eagle reported quarterly EPS of $0.79, far exceeding the $0.22 consensus estimate, while revenue rose 7.5% year over year to $1.38 billion.
• The company declared a quarterly dividend of $0.125 per share, equivalent to a 3.0% annualized yield. Analysts maintain a consensus “Hold” rating with a $19.36 price target, compared with the stock’s $16.57 opening price.

Bank of America Corp DE acquired a new stake in shares of American Eagle Outfitters, Inc. (NYSE:AEO - Free Report) in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 542,808 shares of the apparel retailer's stock, valued at approximately $9,336,000. Bank of America Corp DE owned about 0.32% of American Eagle Outfitters as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors also recently bought and sold shares of the company. Canada Pension Plan Investment Board bought a new position in American Eagle Outfitters in the second quarter worth approximately $7,518,000. Goldman Sachs Group Inc. raised its holdings in American Eagle Outfitters by 12.8% in the 4th quarter. Goldman Sachs Group Inc. now owns 6,000,419 shares of the apparel retailer's stock worth $158,231,000 after purchasing an additional 680,332 shares during the period. NFJ Investment Group LLC bought a new position in American Eagle Outfitters in the 2nd quarter worth $10,962,000. Man Group plc purchased a new position in American Eagle Outfitters during the second quarter valued at $5,316,000. Finally, Broad Peak Investment Advisers Pte Ltd purchased a new position in American Eagle Outfitters during the first quarter valued at $2,973,000. Institutional investors own 97.33% of the company's stock.

American Eagle Outfitters Trading Up 3.0%

Shares of NYSE AEO opened at $16.57 on Friday. The stock has a market capitalization of $2.78 billion, a P/E ratio of 8.45, a PEG ratio of 3.78 and a beta of 1.33. The business's 50 day moving average is $16.70 and its two-hundred day moving average is $17.04. American Eagle Outfitters, Inc. has a 1-year low of $14.06 and a 1-year high of $28.46. The company has a debt-to-equity ratio of 0.03, a current ratio of 1.59 and a quick ratio of 0.62.

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

American Eagle Outfitters Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 28th. Shareholders of record on Friday, October 9th will be given a $0.1250 dividend. This represents a $0.50 annualized dividend and a yield of 3.0%. The ex-dividend date of this dividend is Friday, October 9th. American Eagle Outfitters's dividend payout ratio is 25.51%.

Wall Street Analyst Weigh In

AEO has been the subject of a number of analyst reports. BMO Capital Markets initiated coverage on American Eagle Outfitters in a research report on Tuesday, September 8th. They issued a "market perform" rating and a $18.00 price target for the company. Bank of America restated an "underperform" rating and set a $16.00 target price on shares of American Eagle Outfitters in a research note on Friday, August 14th. The Goldman Sachs Group set a $22.00 price target on shares of American Eagle Outfitters in a report on Monday, June 1st. Weiss Ratings reissued a "hold (c)" rating on shares of American Eagle Outfitters in a research note on Thursday, August 27th. Finally, UBS Group reduced their price objective on shares of American Eagle Outfitters from $31.00 to $27.00 and set a "buy" rating for the company in a research note on Thursday, September 10th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $19.36.

Key American Eagle Outfitters News

Here are the key news stories impacting American Eagle Outfitters this week:

• Positive Sentiment: Higher earnings forecasts and Strong-Buy rating: Zacks Research raised its FY2027 EPS estimate to $2.24 from $1.76 and its FY2029 estimate to $2.14 from $2.01. It also increased its Q2 2029 forecast to $0.61 from $0.31, while maintaining a “Strong-Buy” rating. These revisions suggest analysts see improving earnings potential beyond the current fiscal year. MarketBeat AEO analyst estimates
• Positive Sentiment: Recent operating momentum provides support: American Eagle’s latest reported quarter included adjusted earnings of $0.79 per share, well above the $0.22 consensus estimate, while revenue rose 7.5% year over year to $1.38 billion. The earnings beat helps support the more optimistic revisions and investor interest.
• Neutral Sentiment: Dividend and brand investment remain central to the story: Coverage is focusing on American Eagle’s steady dividend and its denim refresh as the company balances shareholder returns with efforts to strengthen its brand. The combination could improve long-term positioning, but the articles do not provide new operating targets or a dividend increase. American Eagle dividends and denim refresh
• Neutral Sentiment: Valuation appears reasonable: One analysis characterizes AEO as approximately fairly valued, with the dividend holding steady. This limits a clear valuation-driven catalyst but may make the stock attractive to investors seeking earnings value and income. American Eagle valuation and dividend
• Negative Sentiment: Several forecasts were reduced: Zacks cut estimates for Q3 and Q4 FY2027, FY2028, Q1 2028, Q3 2028 and Q1 2029. FY2028 EPS was lowered to $1.88 from $1.90, and Q3 FY2027 EPS to $0.49 from $0.55. The broad pattern of reductions signals caution about near-term and intermediate growth, despite the retained Strong-Buy rating.

Insiders Place Their Bets

In other American Eagle Outfitters news, Director Cary D. Mcmillan sold 2,892 shares of the stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $16.77, for a total value of $48,498.84. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Noel Spiegel sold 2,892 shares of the company's stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $16.78, for a total transaction of $48,527.76. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 11,563 shares of company stock worth $196,599 over the last quarter. Company insiders own 8.95% of the company's stock.

About American Eagle Outfitters

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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