JPMorgan Chase & Co. Reiterates Underweight Rating for American Eagle Outfitters (NYSE:AEO)

Key Points

• JPMorgan Chase & Co. has reiterated its "underweight" rating for American Eagle Outfitters, setting a price target of $9.00, which suggests a potential downside of 23.55% from the stock's previous close.
• The current consensus rating for American Eagle Outfitters among analysts is "Hold," with a consensus price target of $14.70.
• American Eagle Outfitters reported a (0.29) EPS for its latest quarter, missing analyst estimates, and experienced a year-over-year revenue decline of 4.7%.

American Eagle Outfitters (NYSE:AEO - Get Free Report)'s stock had its "underweight" rating reaffirmed by analysts at JPMorgan Chase & Co. in a research note issued to investors on Monday, MarketBeat reports. They presently have a $9.00 price objective on the apparel retailer's stock. JPMorgan Chase & Co.'s price target would suggest a potential downside of 17.69% from the company's previous close.

A number of other research analysts have also recently commented on the company. Wall Street Zen cut American Eagle Outfitters from a "hold" rating to a "sell" rating in a research report on Saturday, June 7th. Telsey Advisory Group upped their price target on American Eagle Outfitters to $12.00 and gave the company a "hold" rating in a research report on Friday, May 30th. Morgan Stanley set a $10.00 price objective on American Eagle Outfitters and gave the stock an "equal weight" rating in a report on Monday, June 2nd. BMO Capital Markets dropped their price objective on American Eagle Outfitters from $15.00 to $11.00 and set a "market perform" rating on the stock in a report on Wednesday, May 14th. Finally, Barclays dropped their price objective on American Eagle Outfitters from $10.00 to $9.00 and set an "underweight" rating on the stock in a report on Monday, May 12th. Three investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and one has issued a buy rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $14.70.

American Eagle Outfitters Trading Down 3.0%

AEO stock traded down $0.34 during mid-day trading on Monday, reaching $10.93. The company's stock had a trading volume of 7,932,399 shares, compared to its average volume of 7,508,064. The company has a market cap of $1.89 billion, a price-to-earnings ratio of 11.17 and a beta of 1.45. The business's 50 day moving average price is $10.30 and its 200 day moving average price is $11.97. The company has a current ratio of 1.38, a quick ratio of 0.56 and a debt-to-equity ratio of 0.07. American Eagle Outfitters has a 12 month low of $9.27 and a 12 month high of $22.83.

American Eagle Outfitters (NYSE:AEO - Get Free Report) last released its quarterly earnings data on Thursday, May 29th. The apparel retailer reported ($0.29) EPS for the quarter, missing the consensus estimate of ($0.25) by ($0.04). American Eagle Outfitters had a net margin of 3.73% and a return on equity of 13.34%. The firm had revenue of $1.09 billion for the quarter, compared to the consensus estimate of $1.08 billion. During the same quarter in the prior year, the firm earned $0.34 EPS. The company's revenue was down 4.7% compared to the same quarter last year. On average, equities research analysts predict that American Eagle Outfitters will post 1.7 EPS for the current year.

Institutional Investors Weigh In On American Eagle Outfitters

Hedge funds have recently made changes to their positions in the company. Junto Capital Management LP bought a new position in shares of American Eagle Outfitters during the first quarter valued at $38,588,000. Millennium Management LLC increased its position in American Eagle Outfitters by 1,510.1% during the fourth quarter. Millennium Management LLC now owns 2,509,057 shares of the apparel retailer's stock valued at $41,826,000 after acquiring an additional 2,353,225 shares during the last quarter. Norges Bank purchased a new stake in American Eagle Outfitters during the fourth quarter valued at $35,267,000. Cooke & Bieler LP increased its position in American Eagle Outfitters by 29.9% during the first quarter. Cooke & Bieler LP now owns 7,791,193 shares of the apparel retailer's stock valued at $90,534,000 after acquiring an additional 1,794,203 shares during the last quarter. Finally, Vaughan Nelson Investment Management L.P. purchased a new stake in American Eagle Outfitters during the first quarter valued at $18,927,000. 97.33% of the stock is currently owned by institutional investors.

About American Eagle Outfitters

American Eagle Outfitters, Inc operates as a multi-brand specialty retailer in the United States and internationally. The company provides jeans, apparel and accessories, and personal care products for women and men under the American Eagle brand; and intimates, apparel, activewear, and swim collections under the Aerie and OFFLINE by Aerie brands.