Wall Street Zen Upgrades American Eagle Outfitters (NYSE:AEO) to "Strong-Buy"

Key Points

• Wall Street Zen upgraded American Eagle Outfitters (AEO) from a "buy" to a "strong-buy" rating in a note to investors on Saturday.
• AEO beat quarterly expectations, reporting $0.84 EPS versus $0.71 expected and $1.81 billion in revenue (up 12.2% year-over-year), with analysts currently forecasting about 1.76 EPS for the year.
• Despite some positive notes (UBS raised its target to $35), the broader Street remains mixed — MarketBeat shows a consensus of "Reduce" with an average price target of $21.75 and an analyst split of 1 Buy, 13 Hold and 2 Sell.

American Eagle Outfitters (NYSE:AEO - Get Free Report) was upgraded by Wall Street Zen from a "buy" rating to a "strong-buy" rating in a note issued to investors on Saturday.

A number of other equities analysts have also recently commented on AEO. UBS Group lifted their target price on American Eagle Outfitters from $31.00 to $35.00 and gave the stock a "buy" rating in a report on Thursday, January 8th. Weiss Ratings reiterated a "hold (c+)" rating on shares of American Eagle Outfitters in a report on Wednesday, March 25th. Zacks Research cut American Eagle Outfitters from a "strong-buy" rating to a "hold" rating in a report on Tuesday, March 10th. Needham & Company LLC began coverage on American Eagle Outfitters in a report on Thursday, March 26th. They set a "hold" rating for the company. Finally, Citigroup boosted their price objective on American Eagle Outfitters from $23.00 to $24.00 and gave the company a "neutral" rating in a report on Friday, March 6th. One research analyst has rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, American Eagle Outfitters has a consensus rating of "Reduce" and an average price target of $21.75.

American Eagle Outfitters Price Performance

NYSE:AEO opened at $17.89 on Friday. American Eagle Outfitters has a 1 year low of $9.27 and a 1 year high of $28.46. The stock's 50 day simple moving average is $19.45 and its two-hundred day simple moving average is $20.98. The company has a market cap of $2.98 billion, a price-to-earnings ratio of 15.97, a PEG ratio of 1.29 and a beta of 1.50.

American Eagle Outfitters (NYSE:AEO - Get Free Report) last announced its earnings results on Wednesday, March 4th. The apparel retailer reported $0.84 EPS for the quarter, topping analysts' consensus estimates of $0.71 by $0.13. The firm had revenue of $1.81 billion during the quarter, compared to analysts' expectations of $1.74 billion. American Eagle Outfitters had a return on equity of 16.76% and a net margin of 3.49%.The company's quarterly revenue was up 12.2% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.54 EPS. As a group, analysts anticipate that American Eagle Outfitters will post 1.76 EPS for the current year.

Insiders Place Their Bets

In other news, Director Noel Joseph Spiegel sold 2,887 shares of the business's stock in a transaction on Monday, April 6th. The stock was sold at an average price of $17.32, for a total value of $50,002.84. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Cary D. Mcmillan sold 2,887 shares of the business's stock in a transaction on Monday, April 6th. The stock was sold at an average price of $17.23, for a total value of $49,743.01. The disclosure for this sale is available in the SEC filing. Insiders own 8.70% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Strategic Investment Solutions Inc. IL increased its position 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 valued at $26,000 after buying an additional 500 shares in the last quarter. Kemnay Advisory Services Inc. acquired a new position in American Eagle Outfitters during the 4th quarter valued at about $31,000. Aster Capital Management DIFC Ltd acquired a new position in American Eagle Outfitters during the 4th quarter valued at about $32,000. Raymond James Financial Inc. purchased a new stake in American Eagle Outfitters during the 2nd quarter valued at about $35,000. Finally, Strs Ohio purchased a new stake in American Eagle Outfitters during the 3rd quarter valued at about $36,000. 97.33% of the stock is owned by institutional investors and hedge funds.

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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