Y Intercept Hong Kong Ltd Invests $7.30 Million in American Eagle Outfitters, Inc. $AEO

Key Points

• Y Intercept Hong Kong Ltd opened a new position in American Eagle Outfitters, buying 437,318 shares worth about $7.3 million in the first quarter. The stake represented roughly 0.26% of the company.
• American Eagle Outfitters recently posted a better-than-expected quarter, reporting EPS of $0.14 versus estimates of $0.11 and revenue of $1.20 billion, up 9.7% year over year. The company also announced a quarterly dividend of $0.125 per share, yielding about 3.0% annualized.
• Analysts have become more cautious on AEO, with several firms cutting price targets and the consensus rating sitting at Hold with an average target of $20.36. Shares were trading around $16.49, well below the 52-week high of $28.46.

Y Intercept Hong Kong Ltd purchased a new stake in American Eagle Outfitters, Inc. (NYSE:AEO - Free Report) in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund purchased 437,318 shares of the apparel retailer's stock, valued at approximately $7,303,000. Y Intercept Hong Kong Ltd owned about 0.26% of American Eagle Outfitters at the end of the most recent reporting period.

Other hedge funds have also modified their holdings of the company. Vanguard Group Inc. increased its stake in American Eagle Outfitters by 1.4% in the 4th quarter. Vanguard Group Inc. now owns 18,398,401 shares of the apparel retailer's stock valued at $485,166,000 after buying an additional 249,158 shares during the period. Dimensional Fund Advisors LP grew its holdings in shares of American Eagle Outfitters by 0.9% in the 4th quarter. Dimensional Fund Advisors LP now owns 8,752,288 shares of the apparel retailer's stock worth $230,801,000 after acquiring an additional 77,758 shares during the period. State Street Corp raised its stake in shares of American Eagle Outfitters by 0.6% during the 4th quarter. State Street Corp now owns 6,606,362 shares of the apparel retailer's stock worth $174,210,000 after buying an additional 39,334 shares during the last quarter. Goldman Sachs Group Inc. lifted its holdings in shares of American Eagle Outfitters by 12.8% in the fourth quarter. Goldman Sachs Group Inc. now owns 6,000,419 shares of the apparel retailer's stock valued at $158,231,000 after purchasing an additional 680,332 shares in the last quarter. Finally, Marshall Wace LLP lifted its stake 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 buying an additional 4,959,039 shares in the last quarter. 97.33% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity 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 on Monday, April 6th. The shares were sold at an average price of $17.32, for a total transaction of $50,002.84. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Cary D. Mcmillan sold 2,887 shares of the stock in a transaction that occurred 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. 8.95% of the stock is currently owned by company insiders.

Analyst Ratings Changes

AEO has been the subject of several recent analyst reports. Citigroup lowered their target price on shares of American Eagle Outfitters from $24.00 to $18.00 and set a "neutral" rating for the company in a research note on Monday, June 1st. Bank of America dropped their target price on shares of American Eagle Outfitters from $20.00 to $16.00 and set an "underperform" rating for the company in a research report on Friday, May 29th. Barclays reduced their price objective on American Eagle Outfitters from $19.00 to $17.00 and set an "equal weight" rating on the stock in a research note on Friday, May 29th. Zacks Research cut shares of American Eagle Outfitters from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, March 10th. Finally, The Goldman Sachs Group set a $22.00 price objective on American Eagle Outfitters in a research note on Monday, June 1st. One equities research analyst has rated the stock with a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, American Eagle Outfitters currently has an average rating of "Hold" and a consensus price target of $20.36.

American Eagle Outfitters Trading Up 0.2%

Shares of NYSE:AEO opened at $16.49 on Friday. American Eagle Outfitters, Inc. has a twelve month low of $9.58 and a twelve month high of $28.46. The firm has a market cap of $2.76 billion, a P/E ratio of 10.18, a P/E/G ratio of 3.58 and a beta of 1.31. The company has a 50 day moving average of $16.99 and a 200-day moving average of $20.55. The company has a current ratio of 1.55, a quick ratio of 0.53 and a debt-to-equity ratio of 0.05.

American Eagle Outfitters (NYSE:AEO - Get Free Report) last released its earnings results 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 for the quarter, compared to the consensus estimate of $1.18 billion. During the same period in the previous year, the firm earned ($0.29) EPS. The business's revenue for the quarter was up 9.7% on a year-over-year basis. As a group, analysts anticipate that American Eagle Outfitters, Inc. will post 1.77 earnings per share for the current fiscal year.

American Eagle Outfitters Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, July 24th. Stockholders of record on Friday, July 10th will be paid a dividend of $0.125 per share. The ex-dividend date of this dividend is 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 30.86%.

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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