American Eagle Outfitters Sees Unusually Large Options Volume (NYSE:AEO)

Key Points

• American Eagle Outfitters saw unusually heavy options activity: Traders bought 15,934 call options, about 73% above the typical volume of 9,209. The stock rose $0.66 to $20.12 during Thursday trading.
• The retailer reported strong quarterly results, with EPS of $0.79 versus analyst expectations of $0.22 and revenue of $1.38 billion, up 7.5% year over year.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and an average price target of $19.55. American Eagle also pays a quarterly dividend of $0.125, equivalent to a 2.5% annual yield.

American Eagle Outfitters, Inc. (NYSE:AEO - Get Free Report) was the recipient of unusually large options trading on Thursday. Traders bought 15,934 call options on the company. This represents an increase of approximately 73% compared to the typical volume of 9,209 call options.

American Eagle Outfitters Stock Performance

AEO stock traded up $0.66 during mid-day trading on Thursday, reaching $20.12. 4,357,263 shares of the stock traded hands, compared to its average volume of 5,498,656. American Eagle Outfitters has a 52 week low of $14.10 and a 52 week high of $28.46. The company has a quick ratio of 0.62, a current ratio of 1.59 and a debt-to-equity ratio of 0.03. The firm has a market capitalization of $3.37 billion, a PE ratio of 10.26, a P/E/G ratio of 4.09 and a beta of 1.28. The business has a 50-day moving average of $17.02 and a two-hundred day moving average of $18.53.

American Eagle Outfitters (NYSE:AEO - Get Free Report) last announced its earnings results on Wednesday, September 9th. The apparel retailer reported $0.79 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.22 by $0.57. American Eagle Outfitters had a net margin of 5.91% and a return on equity of 23.63%. The business had revenue of $1.38 billion for the quarter, compared to analyst estimates of $1.37 billion. During the same quarter in the previous year, the firm posted $0.45 earnings per share. American Eagle Outfitters's revenue was up 7.5% compared to the same quarter last year. As a group, equities analysts predict that American Eagle Outfitters will post 2.24 EPS for the current fiscal year.

American Eagle Outfitters Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, October 28th. Shareholders of record on Friday, October 9th were given a $0.1250 dividend. The ex-dividend date was Friday, October 9th. This represents a $0.50 dividend on an annualized basis and a dividend yield of 2.5%. American Eagle Outfitters's dividend payout ratio (DPR) is currently 25.51%.

Insider Buying and Selling

In related news, Director Noel Spiegel sold 3,617 shares of the company's stock in a transaction that occurred on Friday, October 2nd. The shares were sold at an average price of $17.68, for a total transaction of $63,948.56. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Cary D. Mcmillan sold 3,617 shares of the company's stock in a transaction on Tuesday, October 6th. The shares were sold at an average price of $18.20, for a total value of $65,829.40. The disclosure for this sale is available in the SEC filing. Insiders own 8.95% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. Plato Investment Management Ltd bought a new stake in shares of American Eagle Outfitters in the 2nd quarter valued at $25,000. Allworth Financial LP acquired a new stake in American Eagle Outfitters during the 2nd quarter worth approximately $36,000. Mascoma Wealth Management LLC acquired a new stake in American Eagle Outfitters during the 3rd quarter worth approximately $44,000. EverSource Wealth Advisors LLC lifted its position in American Eagle Outfitters by 31.9% in the 1st quarter. EverSource Wealth Advisors LLC now owns 2,870 shares of the apparel retailer's stock valued at $48,000 after acquiring an additional 694 shares in the last quarter. Finally, Quantbot Technologies LP bought a new position in American Eagle Outfitters during the 2nd quarter worth about $57,000. Institutional investors own 97.33% of the company's stock.

Analyst Ratings Changes

A number of research analysts recently commented on AEO shares. Morgan Stanley reduced their price target on American Eagle Outfitters from $18.00 to $17.00 and set an "equal weight" rating for the company in a report on Thursday, September 10th. Wolfe Research assumed coverage on shares of American Eagle Outfitters in a research note on Wednesday, October 21st. They set a "peer perform" rating on the stock. JPMorgan Chase & Co. lifted their price objective on shares of American Eagle Outfitters from $19.00 to $21.00 and gave the stock a "neutral" rating in a research note on Tuesday, August 18th. Weiss Ratings upgraded shares of American Eagle Outfitters from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, October 8th. Finally, BMO Capital Markets boosted their price target on shares of American Eagle Outfitters from $18.00 to $20.00 and gave the company a "market perform" rating in a report on Tuesday, September 29th. Two research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $19.55.

About American Eagle Outfitters

American Eagle Outfitters, Inc is a specialty retailer that designs, markets and sells apparel, accessories and personal-care products. The company serves teens and young adults through its American Eagle brand, which offers casual clothing including jeans, tops, outerwear, underwear and related accessories.

American Eagle Outfitters also operates Aerie, a lifestyle brand focused on intimates, activewear, swimwear, loungewear and apparel, as well as OFFLINE by Aerie, which emphasizes active and leisure clothing.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.