Wall Street Zen Downgrades American Eagle Outfitters (NYSE:AEO) to Hold

Key Points

• Wall Street Zen downgraded American Eagle Outfitters to “hold” from “buy,” aligning with the broader analyst consensus of “Hold.” The average price target is $19.91, with ratings from two Buy, twelve Hold, and one Sell analyst.
• American Eagle opened at $16.16, with a $2.71 billion market capitalization and a 52-week trading range of $12.05 to $28.46. Recent analyst price targets were reduced by Citigroup to $18 and Barclays to $17, while Bank of America maintained an Underperform rating with a $16 target.
• The retailer exceeded quarterly expectations, reporting $0.14 EPS versus a $0.11 consensus and $1.20 billion in revenue versus $1.18 billion expected; revenue increased 9.7% year over year. However, insiders sold 11,563 shares worth about $196,599 over the past three months, while institutional investors own 97.33% of the stock.

American Eagle Outfitters (NYSE:AEO - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Saturday.

Several other equities research analysts have also issued reports on the stock. Weiss Ratings lowered shares of American Eagle Outfitters from a "hold (c+)" rating to a "hold (c)" rating in a research report on Monday, June 1st. UBS Group restated a "buy" rating on shares of American Eagle Outfitters in a report on Wednesday, July 15th. Citigroup lowered their price target on American Eagle Outfitters from $24.00 to $18.00 and set a "neutral" rating for the company in a report on Monday, June 1st. Barclays cut their price objective on American Eagle Outfitters from $19.00 to $17.00 and set an "equal weight" rating on the stock in a research report on Friday, May 29th. Finally, Bank of America restated an "underperform" rating and set a $16.00 price objective on shares of American Eagle Outfitters in a research note on Friday. Two investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $19.91.

American Eagle Outfitters Stock Performance

NYSE AEO opened at $16.16 on Friday. The company has a debt-to-equity ratio of 0.05, a current ratio of 1.55 and a quick ratio of 0.53. American Eagle Outfitters has a 1-year low of $12.05 and a 1-year high of $28.46. The firm has a market capitalization of $2.71 billion, a P/E ratio of 9.97, a P/E/G ratio of 3.54 and a beta of 1.32. The business's 50-day simple moving average is $17.36 and its 200-day simple moving average is $18.59.

American Eagle Outfitters (NYSE:AEO - Get Free Report) last posted its earnings results on Thursday, May 28th. The apparel retailer reported $0.14 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.11 by $0.03. The firm had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.18 billion. American Eagle Outfitters had a net margin of 5.01% and a return on equity of 20.95%. The company's revenue was up 9.7% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.29) EPS. Equities analysts predict that American Eagle Outfitters will post 1.77 EPS for the current year.

Insider Activity

In other American Eagle Outfitters news, Director Cary D. Mcmillan 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 $16.77, for a total value of $48,498.84. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, Director Noel Joseph Spiegel sold 2,892 shares of the business's stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $16.78, for a total transaction of $48,527.76. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 11,563 shares of company stock worth $196,599. 8.95% of the stock is currently owned by company insiders.

Institutional Trading of American Eagle Outfitters

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Quadrant Capital Group LLC boosted its holdings in American Eagle Outfitters by 31.8% in the fourth quarter. Quadrant Capital Group LLC now owns 1,852 shares of the apparel retailer's stock valued at $49,000 after purchasing an additional 447 shares during the last quarter. Los Angeles Capital Management LLC grew its stake in American Eagle Outfitters by 2.1% during the 4th quarter. Los Angeles Capital Management LLC now owns 25,363 shares of the apparel retailer's stock valued at $669,000 after purchasing an additional 510 shares in the last quarter. EverSource Wealth Advisors LLC grew its stake in American Eagle Outfitters by 31.9% during the 1st quarter. EverSource Wealth Advisors LLC now owns 2,870 shares of the apparel retailer's stock valued at $48,000 after purchasing an additional 694 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank increased its holdings in American Eagle Outfitters by 1.3% during the 3rd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 57,817 shares of the apparel retailer's stock worth $989,000 after purchasing an additional 731 shares during the last quarter. Finally, Commonwealth Equity Services LLC increased its holdings in American Eagle Outfitters by 3.0% during the 4th quarter. Commonwealth Equity Services LLC now owns 24,847 shares of the apparel retailer's stock worth $655,000 after purchasing an additional 734 shares during the last quarter. 97.33% of the stock is owned by hedge funds and other institutional investors.

American Eagle Outfitters Company Profile

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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