Arrowstreet Capital Limited Partnership Buys 3,926,230 Shares of American Eagle Outfitters, Inc. $AEO

Key Points

• Arrowstreet Capital significantly increased its stake in American Eagle Outfitters, buying 3.93 million additional shares in Q1 and lifting its total holding to 6.34 million shares, or 3.78% of the company.
• American Eagle reported better-than-expected Q1 results, with EPS of $0.14 versus $0.11 expected and revenue of $1.20 billion, up 9.7% year over year.
• Analysts remain cautious on AEO, with several price target cuts and an overall consensus rating of Hold; meanwhile, the company also paid a quarterly dividend of $0.125 per share.

Arrowstreet Capital Limited Partnership lifted its position in American Eagle Outfitters, Inc. (NYSE:AEO - Free Report) by 162.9% in the first quarter, according to its most recent Form 13F filing with the SEC. The firm owned 6,336,392 shares of the apparel retailer's stock after purchasing an additional 3,926,230 shares during the period. Arrowstreet Capital Limited Partnership owned 3.78% of American Eagle Outfitters worth $105,818,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently bought and sold shares of AEO. Caxton Associates LLP bought a new stake in American Eagle Outfitters during the 1st quarter valued at $243,000. Sei Investments Co. raised its holdings in shares of American Eagle Outfitters by 60.9% in the first quarter. Sei Investments Co. now owns 364,092 shares of the apparel retailer's stock valued at $6,080,000 after acquiring an additional 137,806 shares in the last quarter. State of Wyoming grew its holdings in American Eagle Outfitters by 1,025.2% during the 1st quarter. State of Wyoming now owns 31,572 shares of the apparel retailer's stock worth $527,000 after acquiring an additional 28,766 shares in the last quarter. Impala Asset Management LLC bought a new position in American Eagle Outfitters during the 1st quarter worth about $2,427,000. Finally, Summit Global Investments bought a new position in American Eagle Outfitters during the 1st quarter worth about $237,000. Institutional investors own 97.33% of the company's stock.

American Eagle Outfitters Price Performance

NYSE:AEO opened at $16.98 on Friday. The firm has a market cap of $2.84 billion, a price-to-earnings ratio of 10.48, a PEG ratio of 3.71 and a beta of 1.31. American Eagle Outfitters, Inc. has a one year low of $10.29 and a one year high of $28.46. The firm's fifty day moving average is $17.06 and its two-hundred day moving average is $19.51. 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 (NYSE:AEO - Get Free Report) last issued its quarterly earnings data on Thursday, May 28th. The apparel retailer reported $0.14 earnings per share for the quarter, topping analysts' consensus estimates of $0.11 by $0.03. American Eagle Outfitters had a net margin of 5.01% and a return on equity of 20.95%. The business had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.18 billion. During the same quarter in the prior year, the firm posted ($0.29) earnings per share. The company's revenue was up 9.7% compared to the same quarter last year. Research analysts expect that American Eagle Outfitters, Inc. will post 1.76 EPS for the current year.

American Eagle Outfitters Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, July 24th. Shareholders of record on Friday, July 10th were issued a dividend of $0.125 per share. The ex-dividend date of this dividend was Friday, July 10th. This represents a $0.50 dividend on an annualized basis and a dividend yield of 2.9%. American Eagle Outfitters's dividend payout ratio is presently 30.86%.

Analyst Ratings Changes

Several equities research analysts have recently commented on AEO shares. Citigroup reduced their price target on shares of American Eagle Outfitters from $24.00 to $18.00 and set a "neutral" rating for the company in a report on Monday, June 1st. Weiss Ratings downgraded shares of American Eagle Outfitters from a "hold (c+)" rating to a "hold (c)" rating in a research note on Monday, June 1st. TD Cowen cut their price target on American Eagle Outfitters from $19.00 to $18.00 and set a "hold" rating on the stock in a report on Monday, May 18th. Wall Street Zen downgraded shares of American Eagle Outfitters from a "buy" rating to a "hold" rating in a research report on Sunday, July 12th. Finally, Bank of America reduced their target price on American Eagle Outfitters from $20.00 to $16.00 and set an "underperform" rating on the stock in a research report on Friday, May 29th. Two analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and an average target price of $19.91.

Insider Buying and Selling

In related news, Director Noel Joseph Spiegel sold 2,892 shares of the business's 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Cary D. Mcmillan sold 2,892 shares of the stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $16.77, for a total value of $48,498.84. The SEC filing for this sale provides additional information. Insiders own 8.95% of the company's stock.

About American Eagle Outfitters

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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