Paradigm Capital Management Inc. NY Acquires Shares of 84,775 American Eagle Outfitters, Inc. $AEO

Key Points

• Paradigm Capital Management acquired 84,775 shares of American Eagle Outfitters worth approximately $1.46 million, while institutional investors collectively owned 97.33% of the company.
• Analysts maintain a generally cautious view, with 12 Hold ratings, two Buys and one Sell; the consensus rating is Hold with a $20.09 price target.
• American Eagle exceeded quarterly expectations with $0.14 EPS and $1.20 billion in revenue, up 9.7% year over year. The company also paid a $0.125 quarterly dividend, representing a 3.0% annualized yield.

Paradigm Capital Management Inc. NY acquired a new stake in shares of American Eagle Outfitters, Inc. (NYSE:AEO - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm acquired 84,775 shares of the apparel retailer's stock, valued at approximately $1,458,000. Paradigm Capital Management Inc. NY owned about 0.05% of American Eagle Outfitters at the end of the most recent reporting period.

Several other hedge funds have also recently modified their holdings of the stock. BlackRock Inc. bought a new position in shares of American Eagle Outfitters during the second quarter worth $458,632,000. Marshall Wace LLP increased its holdings in American Eagle Outfitters by 920.6% in the 3rd quarter. Marshall Wace LLP now owns 5,497,720 shares of the apparel retailer's stock valued at $94,066,000 after acquiring an additional 4,959,039 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its holdings in American Eagle Outfitters by 162.9% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 6,336,392 shares of the apparel retailer's stock valued at $105,818,000 after acquiring an additional 3,926,230 shares during the last quarter. Bank of New York Mellon Corp bought a new stake in American Eagle Outfitters in the 2nd quarter valued at $27,637,000. Finally, Balyasny Asset Management L.P. purchased a new stake in American Eagle Outfitters in the 4th quarter worth $40,954,000. Hedge funds and other institutional investors own 97.33% of the company's stock.

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on the company. TD Cowen cut their price objective 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. Morgan Stanley reiterated an "equal weight" rating and issued a $18.00 target price on shares of American Eagle Outfitters in a research report on Monday, July 6th. Weiss Ratings lowered American Eagle Outfitters from a "hold (c+)" rating to a "hold (c)" rating in a research note on Monday, June 1st. William Blair reissued a "buy" rating on shares of American Eagle Outfitters in a research note on Wednesday, July 15th. Finally, JPMorgan Chase & Co. raised their price target on American Eagle Outfitters from $19.00 to $21.00 and gave the company a "neutral" rating in a report on Tuesday, August 18th. Two equities research 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, American Eagle Outfitters currently has an average rating of "Hold" and a consensus price target of $20.09.

American Eagle Outfitters Price Performance

American Eagle Outfitters stock opened at $16.90 on Tuesday. American Eagle Outfitters, Inc. has a 52-week low of $12.11 and a 52-week high of $28.46. The company has a quick ratio of 0.53, a current ratio of 1.55 and a debt-to-equity ratio of 0.05. The firm's fifty day moving average is $17.18 and its 200 day moving average is $18.25. The company has a market cap of $2.83 billion, a price-to-earnings ratio of 10.43, a PEG ratio of 3.53 and a beta of 1.32.

American Eagle Outfitters (NYSE:AEO - Get Free Report) last issued its quarterly earnings data on Thursday, May 28th. The apparel retailer reported $0.14 EPS 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 analysts' expectations of $1.18 billion. During the same period last year, the company posted ($0.29) EPS. The business's revenue was up 9.7% on a year-over-year basis. Sell-side analysts forecast that American Eagle Outfitters, Inc. will post 1.76 EPS for the current fiscal year.

American Eagle Outfitters Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, July 24th. Investors of record on Friday, July 10th were issued a $0.125 dividend. 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 3.0%. American Eagle Outfitters's dividend payout ratio (DPR) is presently 30.86%.

Insider Buying and Selling

In related news, Director David M. Sable sold 5,779 shares of American Eagle Outfitters stock in a transaction dated Friday, July 17th. The stock was sold at an average price of $17.23, for a total value of $99,572.17. Following the completion of the transaction, the director owned 53,481 shares in the company, valued at approximately $921,477.63. This trade represents a 9.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Cary D. Mcmillan 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 $16.77, for a total value of $48,498.84. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 11,563 shares of company stock worth $196,599. Corporate 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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