American Eagle Outfitters, Inc. $AEO Stake Cut by Principal Financial Group Inc.

Key Points

• Principal Financial Group reduced its American Eagle Outfitters stake by 22.7% in the fourth quarter, selling 467,266 shares and leaving it with 1.59 million shares valued at about $41.96 million.
• Analysts remain cautious on AEO: several firms cut price targets, and the stock’s consensus rating is Hold with an average target price of $21.75.
• American Eagle recently beat quarterly expectations, posting $0.84 EPS on $1.81 billion in revenue, while also declaring a quarterly dividend of $0.125 per share for a 3.0% annual yield.

Principal Financial Group Inc. cut its position in shares of American Eagle Outfitters, Inc. (NYSE:AEO - Free Report) by 22.7% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 1,591,285 shares of the apparel retailer's stock after selling 467,266 shares during the quarter. Principal Financial Group Inc. owned 0.94% of American Eagle Outfitters worth $41,962,000 at the end of the most recent reporting period.

Several other large investors have also recently added to or reduced their stakes in AEO. Marshall Wace LLP lifted its stake in American Eagle Outfitters by 920.6% during 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 last quarter. Segall Bryant & Hamill LLC bought a new position in American Eagle Outfitters during the third quarter worth $23,395,000. Kinetic Partners Management LP bought a new position in American Eagle Outfitters during the third quarter worth $14,618,000. M&T Bank Corp bought a new position in American Eagle Outfitters during the fourth quarter worth $21,413,000. Finally, Lakewood Capital Management LP bought a new position in American Eagle Outfitters during the third quarter worth $11,051,000. 97.33% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

AEO has been the topic of several research analyst reports. Telsey Advisory Group reduced their price objective on American Eagle Outfitters from $28.00 to $25.00 and set a "market perform" rating on the stock in a research note on Thursday, March 5th. TD Cowen reduced their price objective on American Eagle Outfitters from $27.00 to $21.00 and set a "hold" rating on the stock in a research note on Friday, March 6th. Needham & Company LLC initiated coverage on American Eagle Outfitters in a research note on Thursday, March 26th. They set a "hold" rating on the stock. Barclays raised American Eagle Outfitters from an "underweight" rating to an "equal weight" rating and set a $19.00 target price on the stock in a research report on Wednesday. Finally, Citigroup increased their target price on American Eagle Outfitters from $23.00 to $24.00 and gave the stock a "neutral" rating in a research report on Friday, March 6th. One analyst has rated the stock with a Buy rating, fourteen have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $21.75.

American Eagle Outfitters Price Performance

Shares of NYSE AEO opened at $16.65 on Friday. American Eagle Outfitters, Inc. has a 1-year low of $9.27 and a 1-year high of $28.46. The business's fifty day moving average price is $18.39 and its two-hundred day moving average price is $21.15. The firm has a market capitalization of $2.79 billion, a PE ratio of 14.87, a P/E/G ratio of 1.18 and a beta of 1.38.

American Eagle Outfitters (NYSE:AEO - Get Free Report) last issued its earnings results on Wednesday, March 4th. The apparel retailer reported $0.84 earnings per share for the quarter, topping the consensus estimate of $0.71 by $0.13. American Eagle Outfitters had a return on equity of 16.76% and a net margin of 3.49%.The firm had revenue of $1.81 billion for the quarter, compared to analyst estimates of $1.74 billion. During the same period last year, the company earned $0.54 earnings per share. The firm's revenue for the quarter was up 12.2% on a year-over-year basis. Equities research analysts expect that American Eagle Outfitters, Inc. will post 1.76 earnings per share for the current fiscal year.

American Eagle Outfitters Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, April 24th. Stockholders of record on Friday, April 10th were issued a dividend of $0.125 per share. This represents a $0.50 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date of this dividend was Friday, April 10th. American Eagle Outfitters's dividend payout ratio (DPR) is 44.64%.

Insiders Place Their Bets

In other news, Director Noel Joseph Spiegel sold 2,887 shares of the firm's stock in a transaction on Monday, April 6th. The stock was sold at an average price of $17.32, for a total transaction of $50,002.84. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Cary D. Mcmillan sold 2,887 shares of the firm's stock in a transaction on Monday, April 6th. The shares were sold at an average price of $17.23, for a total value of $49,743.01. The SEC filing for this sale provides additional information. 8.70% of the stock is currently owned by company insiders.

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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