Traders Purchase High Volume of American Eagle Outfitters Put Options (NYSE:AEO)

Key Points

• American Eagle Outfitters experienced unusual options trading activity with a purchase of 38,278 put options, marking a 98% increase compared to the average volume.
• The company's recent quarterly earnings report showed an earnings per share loss of ($0.29), which was below the consensus estimate of ($0.25), and a 4.7% decline in revenue compared to the previous year.
• American Eagle Outfitters declared a quarterly dividend of $0.125 per share with a 3.9% yield, highlighting its commitment to returning value to shareholders.

American Eagle Outfitters, Inc. (NYSE:AEO - Get Free Report) was the target of some unusual options trading on Monday. Stock investors acquired 38,278 put options on the stock. Thisrepresentsanincreaseof98% compared to the average volume of 19,342 put options.

American Eagle Outfitters Stock Performance

AEO traded down $0.1850 during trading hours on Monday, hitting $12.6650. The stock had a trading volume of 3,494,214 shares, compared to its average volume of 8,435,411. The company's fifty day simple moving average is $10.97 and its 200 day simple moving average is $11.45. American Eagle Outfitters has a 1 year low of $9.27 and a 1 year high of $22.83. The stock has a market cap of $2.19 billion, a PE ratio of 12.89 and a beta of 1.51. The company has a quick ratio of 0.56, a current ratio of 1.38 and a debt-to-equity ratio of 0.07.

American Eagle Outfitters (NYSE:AEO - Get Free Report) last announced its quarterly earnings data on Thursday, May 29th. The apparel retailer reported ($0.29) earnings per share for the quarter, missing the consensus estimate of ($0.25) by ($0.04). American Eagle Outfitters had a return on equity of 13.34% and a net margin of 3.73%.The firm had revenue of $1.09 billion during the quarter, compared to analysts' expectations of $1.08 billion. During the same period last year, the business posted $0.34 EPS. The company's revenue was down 4.7% compared to the same quarter last year. American Eagle Outfitters has set its Q2 2025 guidance at EPS. Equities analysts anticipate that American Eagle Outfitters will post 1.7 earnings per share for the current year.

American Eagle Outfitters Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, July 25th. Investors of record on Friday, July 11th were issued a $0.125 dividend. The ex-dividend date of this dividend was Friday, July 11th. This represents a $0.50 annualized dividend and a yield of 3.9%. American Eagle Outfitters's dividend payout ratio (DPR) is 51.02%.

Institutional Investors Weigh In On American Eagle Outfitters

Several large investors have recently added to or reduced their stakes in AEO. Raymond James Financial Inc. purchased a new position in American Eagle Outfitters during the 4th quarter valued at about $2,154,000. First Trust Advisors LP grew its holdings in American Eagle Outfitters by 1.0% during the 4th quarter. First Trust Advisors LP now owns 228,898 shares of the apparel retailer's stock valued at $3,816,000 after buying an additional 2,172 shares in the last quarter. MetLife Investment Management LLC grew its holdings in American Eagle Outfitters by 0.7% during the 4th quarter. MetLife Investment Management LLC now owns 105,949 shares of the apparel retailer's stock valued at $1,766,000 after buying an additional 724 shares in the last quarter. Tower Research Capital LLC TRC grew its holdings in American Eagle Outfitters by 292.1% during the 4th quarter. Tower Research Capital LLC TRC now owns 17,955 shares of the apparel retailer's stock valued at $299,000 after buying an additional 13,376 shares in the last quarter. Finally, Stifel Financial Corp grew its holdings in American Eagle Outfitters by 15.1% during the 4th quarter. Stifel Financial Corp now owns 74,960 shares of the apparel retailer's stock valued at $1,250,000 after buying an additional 9,812 shares in the last quarter. Hedge funds and other institutional investors own 97.33% of the company's stock.

Wall Street Analysts Forecast Growth

AEO has been the topic of several recent analyst reports. Telsey Advisory Group raised their price objective on American Eagle Outfitters to $12.00 and gave the company a "hold" rating in a research note on Friday, May 30th. Morgan Stanley set a $10.00 target price on American Eagle Outfitters and gave the stock an "equal weight" rating in a research note on Monday, June 2nd. Zacks Research upgraded American Eagle Outfitters to a "hold" rating in a research note on Monday, August 11th. Cfra Research cut American Eagle Outfitters from a "moderate buy" rating to a "hold" rating in a research note on Friday, June 6th. Finally, Citigroup reiterated a "neutral" rating on shares of American Eagle Outfitters in a research note on Friday, May 23rd. One research analyst has rated the stock with a Buy rating, nine have given a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Reduce" and a consensus price target of $14.40.

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.

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