Short Interest in American Eagle Outfitters, Inc. (NYSE:AEO) Drops By 13.3%

Key Points

• Short interest fell 13.3% to 14,336,397 shares as of March 13, representing about 9.3% of shares short and a short-interest ratio of 1.7 days.
• American Eagle beat expectations for the quarter with $0.84 EPS vs. $0.71 consensus and $1.76B revenue (up 12.2% YoY), and declared a quarterly dividend of $0.125 per share (3.1% yield).
• Analyst sentiment is muted — one Buy, thirteen Hold and two Sell — with an average MarketBeat rating of "Reduce" and an average price target of $21.75.

American Eagle Outfitters, Inc. (NYSE:AEO - Get Free Report) saw a large decrease in short interest in the month of March. As of March 13th, there was short interest totaling 14,336,397 shares, a decrease of 13.3% from the February 26th total of 16,526,500 shares. Based on an average trading volume of 8,364,149 shares, the short-interest ratio is currently 1.7 days. Currently, 9.3% of the shares of the stock are short sold.

Insider Buying and Selling

In other American Eagle Outfitters news, Director Cary D. Mcmillan sold 1,896 shares of the business's stock in a transaction that occurred on Wednesday, January 14th. The shares were sold at an average price of $26.21, for a total transaction of $49,694.16. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Noel Joseph Spiegel sold 1,896 shares of the company's stock in a transaction on Wednesday, January 21st. The stock was sold at an average price of $25.66, for a total value of $48,651.36. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 8.70% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in AEO. Quadrant Capital Group LLC raised its holdings in American Eagle Outfitters by 31.8% in the 4th quarter. Quadrant Capital Group LLC now owns 1,852 shares of the apparel retailer's stock valued at $49,000 after buying an additional 447 shares during the last quarter. Cambria Investment Management L.P. grew its holdings in American Eagle Outfitters by 4.5% during the 3rd quarter. Cambria Investment Management L.P. now owns 10,777 shares of the apparel retailer's stock worth $184,000 after acquiring an additional 468 shares during the last quarter. Strategic Investment Solutions Inc. IL grew its holdings in American Eagle Outfitters by 50.0% during the 3rd quarter. Strategic Investment Solutions Inc. IL now owns 1,500 shares of the apparel retailer's stock worth $26,000 after acquiring an additional 500 shares during the last quarter. Los Angeles Capital Management LLC increased its position in American Eagle Outfitters by 2.1% in the 4th quarter. Los Angeles Capital Management LLC now owns 25,363 shares of the apparel retailer's stock valued at $669,000 after acquiring an additional 510 shares during the period. Finally, PNC Financial Services Group Inc. increased its position in American Eagle Outfitters by 4.8% in the 3rd quarter. PNC Financial Services Group Inc. now owns 14,855 shares of the apparel retailer's stock valued at $254,000 after acquiring an additional 678 shares during the period. Institutional investors and hedge funds own 97.33% of the company's stock.

Wall Street Analyst Weigh In

AEO has been the topic of several recent analyst reports. Bank of America lifted their price target on American Eagle Outfitters from $11.00 to $18.00 and gave the company an "underperform" rating in a research note on Wednesday, December 3rd. Telsey Advisory Group dropped their price objective on American Eagle Outfitters from $28.00 to $25.00 and set a "market perform" rating for the company in a research report on Thursday, March 5th. The Goldman Sachs Group assumed coverage on American Eagle Outfitters in a research report on Thursday, December 11th. They issued a "neutral" rating and a $25.00 target price on the stock. Royal Bank Of Canada set a $23.00 target price on American Eagle Outfitters in a research note on Wednesday, December 3rd. Finally, Barclays dropped their target price on shares of American Eagle Outfitters from $24.00 to $19.00 and set an "underweight" rating for the company in a report on Thursday, March 5th. One analyst has rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of "Reduce" and an average target price of $21.75.

American Eagle Outfitters Stock Down 0.5%

Shares of NYSE:AEO opened at $16.06 on Tuesday. The company has a fifty day moving average of $21.71 and a 200-day moving average of $21.00. The company has a market capitalization of $2.72 billion, a PE ratio of 14.33, a price-to-earnings-growth ratio of 1.14 and a beta of 1.39. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.71 and a current ratio of 1.52. American Eagle Outfitters has a 52-week low of $9.27 and a 52-week high of $28.46.

American Eagle Outfitters (NYSE:AEO - Get Free Report) last released its quarterly earnings data on Wednesday, March 4th. The apparel retailer reported $0.84 earnings per share for the quarter, beating the consensus estimate of $0.71 by $0.13. The company had revenue of $1.76 billion for the quarter, compared to the consensus estimate of $1.74 billion. American Eagle Outfitters had a return on equity of 16.76% and a net margin of 3.49%.American Eagle Outfitters's revenue for the quarter was up 12.2% on a year-over-year basis. During the same quarter last year, the business posted $0.54 EPS. On average, equities analysts predict that American Eagle Outfitters will post 1.7 EPS for the current fiscal year.

American Eagle Outfitters Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, April 24th. Stockholders of record on Friday, April 10th will be paid a dividend of $0.125 per share. This represents a $0.50 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date of this dividend is Friday, April 10th. American Eagle Outfitters's dividend payout ratio (DPR) is presently 44.64%.

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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