Diamond Hill Capital Management Inc. Lowers Holdings in American Eagle Outfitters, Inc. $AEO

Key Points

• Diamond Hill Capital Management cut its stake in American Eagle Outfitters by 38.2% in the fourth quarter, leaving it with 98,429 shares valued at about $2.6 million.
• Several other institutional investors increased their positions in AEO, and hedge funds and other institutions now own 97.33% of the company’s shares.
• Analyst sentiment remains cautious: the stock carries an average “Hold” rating with a $22.45 price target, even though American Eagle recently beat earnings and revenue estimates and pays a quarterly dividend yielding about 3.0%.

Diamond Hill Capital Management Inc. lessened its stake in American Eagle Outfitters, Inc. (NYSE:AEO - Free Report) by 38.2% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 98,429 shares of the apparel retailer's stock after selling 60,907 shares during the quarter. Diamond Hill Capital Management Inc. owned 0.06% of American Eagle Outfitters worth $2,596,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors have also recently modified their holdings of AEO. Royal Bank of Canada raised its position in shares of American Eagle Outfitters by 24.8% in the 1st quarter. Royal Bank of Canada now owns 162,243 shares of the apparel retailer's stock worth $1,885,000 after purchasing an additional 32,191 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of American Eagle Outfitters by 4.5% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 105,726 shares of the apparel retailer's stock worth $1,229,000 after purchasing an additional 4,599 shares during the last quarter. Jones Financial Companies Lllp raised its position in shares of American Eagle Outfitters by 1,238.2% in the 1st quarter. Jones Financial Companies Lllp now owns 52,551 shares of the apparel retailer's stock worth $611,000 after purchasing an additional 48,624 shares during the last quarter. Empowered Funds LLC raised its position in shares of American Eagle Outfitters by 9.6% in the 1st quarter. Empowered Funds LLC now owns 15,937 shares of the apparel retailer's stock worth $185,000 after purchasing an additional 1,398 shares during the last quarter. Finally, Marshall Wace LLP raised its position in shares of American Eagle Outfitters by 349.9% in the 2nd quarter. Marshall Wace LLP now owns 538,681 shares of the apparel retailer's stock worth $5,182,000 after purchasing an additional 418,943 shares during the last quarter. Hedge funds and other institutional investors own 97.33% of the company's stock.

Insider Transactions at American Eagle Outfitters

In other American Eagle Outfitters news, Director Noel Joseph Spiegel sold 2,887 shares of the business's stock in a transaction dated Monday, April 6th. The stock was sold at an average price of $17.32, for a total value of $50,002.84. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Cary D. Mcmillan sold 2,887 shares of the business's stock in a transaction dated Monday, April 6th. The stock was sold at an average price of $17.23, for a total value of $49,743.01. The disclosure for this sale is available in the SEC filing. 8.70% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on AEO shares. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of American Eagle Outfitters in a research report on Wednesday, March 25th. Telsey Advisory Group lowered their price target on American Eagle Outfitters from $28.00 to $25.00 and set a "market perform" rating for the company in a research report on Thursday, March 5th. TD Cowen lowered their price target on American Eagle Outfitters from $19.00 to $18.00 and set a "hold" rating for the company in a research report on Monday, May 18th. Needham & Company LLC started coverage on American Eagle Outfitters in a research report on Thursday, March 26th. They issued a "hold" rating for the company. Finally, Wall Street Zen raised American Eagle Outfitters from a "buy" rating to a "strong-buy" rating in a research report on Saturday, April 25th. One investment analyst has rated the stock with a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, American Eagle Outfitters presently has an average rating of "Hold" and an average price target of $22.45.

American Eagle Outfitters Stock Performance

Shares of NYSE:AEO opened at $16.58 on Friday. American Eagle Outfitters, Inc. has a fifty-two week low of $9.27 and a fifty-two week high of $28.46. The business has a 50-day simple moving average of $17.19 and a two-hundred day simple moving average of $21.08. The firm has a market cap of $2.78 billion, a price-to-earnings ratio of 14.80, a price-to-earnings-growth 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 analysts' consensus estimates 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 business had revenue of $1.81 billion during the quarter, compared to analyst estimates of $1.74 billion. During the same quarter in the previous year, the firm earned $0.54 EPS. American Eagle Outfitters's revenue was up 12.2% on a year-over-year basis. As a group, research analysts predict that American Eagle Outfitters, Inc. will post 1.76 earnings per share for the current year.

American Eagle Outfitters Announces Dividend

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

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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