American Eagle Outfitters (NYSE:AEO) Shares Up 4.3% - Still a Buy?

Key Points

• American Eagle shares rose 4.3% to approximately $17.29, although trading volume was 94% below the average session volume.
• Analysts remain mixed, with the stock carrying a consensus “Hold” rating and an average price target of $19.36; ratings include one Strong Buy, two Buys, ten Holds and one Sell.
• The retailer reported strong quarterly results, with EPS of $0.79 versus the $0.22 consensus and revenue of $1.38 billion, up 7.5% year over year. It also declared a quarterly dividend of $0.125, equivalent to a 2.8% annual yield.

Shares of American Eagle Outfitters, Inc. (NYSE:AEO - Get Free Report) traded up 4.3% during trading on Monday. The stock traded as high as $16.98 and last traded at $17.2880. Approximately 321,877 shares traded hands during trading, a decline of 94% from the average session volume of 5,540,155 shares. The stock had previously closed at $16.58.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on AEO shares. Zacks Research raised shares of American Eagle Outfitters from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, September 9th. BMO Capital Markets assumed coverage on American Eagle Outfitters in a report on Tuesday, September 8th. They issued a "market perform" rating and a $18.00 target price on the stock. Wall Street Zen raised American Eagle Outfitters from a "hold" rating to a "buy" rating in a research report on Saturday, September 5th. Weiss Ratings restated a "hold (c)" rating on shares of American Eagle Outfitters in a research note on Thursday, August 27th. Finally, The Goldman Sachs Group set a $22.00 price objective on American Eagle Outfitters in a report on Monday, June 1st. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $19.36.

American Eagle Outfitters Stock Up 6.2%

The firm has a 50-day simple moving average of $16.70 and a 200 day simple moving average of $17.03. The company has a debt-to-equity ratio of 0.03, a current ratio of 1.59 and a quick ratio of 0.62. The company has a market capitalization of $2.95 billion, a PE ratio of 8.97, a price-to-earnings-growth ratio of 3.78 and a beta of 1.33.

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

American Eagle Outfitters Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 28th. Shareholders of record on Friday, October 9th will be given a $0.1250 dividend. The ex-dividend date of this dividend is Friday, October 9th. This represents a $0.50 annualized dividend and a yield of 2.8%. American Eagle Outfitters's dividend payout ratio (DPR) is 25.51%.

Insider Activity

In other news, Director Noel Spiegel sold 2,892 shares of the business's stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $16.78, for a total transaction of $48,527.76. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director David Sable sold 5,779 shares of the company's stock in a transaction on Friday, July 17th. The shares were sold at an average price of $17.23, for a total transaction of $99,572.17. Following the completion of the transaction, the director owned 53,481 shares of the company's stock, valued at $921,477.63. This trade represents a 9.75% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 11,563 shares of company stock worth $196,599 over the last 90 days. Company insiders own 8.95% of the company's stock.

Hedge Funds Weigh In On American Eagle Outfitters

A number of institutional investors have recently added to or reduced their stakes in AEO. EverSource Wealth Advisors LLC raised its holdings in shares of American Eagle Outfitters by 31.9% during the first quarter. EverSource Wealth Advisors LLC now owns 2,870 shares of the apparel retailer's stock worth $48,000 after purchasing an additional 694 shares during the period. IFP Advisors Inc grew its position in shares of American Eagle Outfitters by 46.6% during the 4th quarter. IFP Advisors Inc now owns 3,767 shares of the apparel retailer's stock valued at $99,000 after buying an additional 1,197 shares during the last quarter. Swiss National Bank grew its position in shares of American Eagle Outfitters by 0.4% during the 1st quarter. Swiss National Bank now owns 318,600 shares of the apparel retailer's stock valued at $5,321,000 after buying an additional 1,400 shares during the last quarter. Hantz Financial Services Inc. raised its stake in American Eagle Outfitters by 46.6% during the fourth quarter. Hantz Financial Services Inc. now owns 4,537 shares of the apparel retailer's stock worth $120,000 after acquiring an additional 1,443 shares during the period. Finally, Plato Investment Management Ltd acquired a new stake in American Eagle Outfitters during the second quarter worth about $25,000. Institutional investors and hedge funds own 97.33% of the company's stock.

American Eagle Outfitters Company Profile

American Eagle Outfitters, Inc NYSE: AEO is a specialty retailer offering casual apparel, accessories and footwear for young women and men. Its product assortment includes jeans, tops, dresses, intimates, loungewear and activewear, with merchandise sold through company-operated stores and digital channels.

The company's principal brands include American Eagle, which focuses on casual lifestyle clothing and denim, and Aerie, which offers intimates, activewear and loungewear. Its brand portfolio has also included OFFLINE by Aerie, a performance and wellness-oriented line, and Todd Snyder, a menswear brand known for elevated casual clothing and tailoring.

Founded in 1977, American Eagle Outfitters is headquartered in Pittsburgh, Pennsylvania.

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