Recent Analysts’ Ratings Updates for American Eagle Outfitters (AEO)

American Eagle Outfitters (NYSE: AEO) recently received a number of ratings updates from brokerages and research firms:

  • 6/21/2019 – American Eagle Outfitters was given a new $26.00 price target on by analysts at UBS Group AG. They now have a “buy” rating on the stock.
  • 6/12/2019 – American Eagle Outfitters was given a new $26.00 price target on by analysts at UBS Group AG. They now have a “buy” rating on the stock.
  • 6/11/2019 – American Eagle Outfitters was downgraded by analysts at ValuEngine from a “hold” rating to a “sell” rating.
  • 6/6/2019 – American Eagle Outfitters had its price target lowered by analysts at Wedbush from $25.00 to $20.00. They now have a “neutral” rating on the stock.
  • 5/27/2019 – American Eagle Outfitters was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. They now have a $22.00 price target on the stock. According to Zacks, “American Eagle outperformed the industry in the past year as it boasts a robust comps trend and surprise history. Strategic initiatives and ability to boost the market share through strong brands and compelling merchandise is aiding comps. The company has also delivered positive earnings surprise in the last four quarters, with a sales beat in three of the last five quarters. Further, its omni-channel efforts along with accelerated Aerie brand growth bode well. However, the company issued bleak earnings outlook for first-quarter fiscal 2019. Further, it reported soft operating margin in fourth-quarter fiscal 2018, due to shift of the 2018 retail calendar and SG&A deleverage. SG&A expenses were hurt by stronger investments in brands and customer experience and higher store payroll, wages plus increased incentive and advertising expenses.”
  • 5/13/2019 – American Eagle Outfitters was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “Although American Eagle has outperformed the industry in the past three months, its bleak earnings outlook for first-quarter fiscal 2019 is a reason of concern for investors. Further, soft operating margin in fourth-quarter fiscal 2019 due to shift of the 2018 retail calendar as well as SG&A deleverage hurt sentiment. SG&A expenses were hurt by stronger investments in brands and customer experience and higher store payroll, wages plus increased incentive and advertising expenses. However, the company boasts a robust comps trend and surprise history. Notably, comps continue to gain from strategic initiatives and ability to boost the market share through strong brands and compelling merchandise. Moreover, the company had delivered positive earnings surprise in the last four quarters, decent with a sales beat recorded in three of the last five quarters. Further, its omni-channel efforts along with accelerated Aerie brand growth bode well.”
  • 5/10/2019 – American Eagle Outfitters was downgraded by analysts at ValuEngine from a “buy” rating to a “hold” rating.
  • 5/9/2019 – American Eagle Outfitters was downgraded by analysts at Royal Bank of Canada from an “outperform” rating to a “sector perform” rating. They now have a $24.00 price target on the stock. They noted that the move was a valuation call. They noted that the move was a valuation call.
  • 5/9/2019 – American Eagle Outfitters was downgraded by analysts at Wedbush from an “outperform” rating to a “neutral” rating.
  • 5/7/2019 – American Eagle Outfitters was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “Although American Eagle has outperformed the industry in the past three months, its bleak earnings outlook for first-quarter fiscal 2019 is a reason of concern for investors. Further, soft operating margin in fourth-quarter fiscal 2019 due to shift of the 2018 retail calendar as well as SG&A deleverage hurt sentiment. SG&A expenses were hurt by stronger investments in brands and customer experience and higher store payroll, wages plus increased incentive and advertising expenses. However, the company boasts a robust comps trend and surprise history. Notably, comps continue to gain from strategic initiatives and ability to boost the market share through strong brands and compelling merchandise. Moreover, the company had delivered positive earnings surprise in the last four quarters, decent with a sales beat recorded in three of the last five quarters. Further, its omni-channel efforts along with accelerated Aerie brand growth bode well.”
  • 5/1/2019 – American Eagle Outfitters was upgraded by analysts at ValuEngine from a “hold” rating to a “buy” rating.

AEO opened at $17.17 on Wednesday. American Eagle Outfitters has a one year low of $16.31 and a one year high of $29.88. The firm has a market capitalization of $3.00 billion, a PE ratio of 11.60, a PEG ratio of 1.72 and a beta of 1.07. The firm has a 50 day simple moving average of $18.81. The company has a quick ratio of 0.76, a current ratio of 1.46 and a debt-to-equity ratio of 1.07.

American Eagle Outfitters (NYSE:AEO) last released its quarterly earnings data on Wednesday, June 5th. The apparel retailer reported $0.24 EPS for the quarter, beating analysts’ consensus estimates of $0.21 by $0.03. American Eagle Outfitters had a return on equity of 20.80% and a net margin of 6.41%. The firm had revenue of $886.29 million for the quarter, compared to analysts’ expectations of $855.55 million. During the same period in the prior year, the firm posted $0.23 earnings per share. The firm’s quarterly revenue was up 7.7% on a year-over-year basis. As a group, equities analysts predict that American Eagle Outfitters will post 1.58 earnings per share for the current year.

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, July 26th. Investors of record on Friday, July 12th will be issued a $0.1375 dividend. This represents a $0.55 dividend on an annualized basis and a yield of 3.20%. The ex-dividend date is Thursday, July 11th. American Eagle Outfitters’s dividend payout ratio is presently 37.16%.

In related news, insider Jennifer M. Foyle sold 117,051 shares of the company’s stock in a transaction that occurred on Monday, May 6th. The stock was sold at an average price of $23.53, for a total value of $2,754,210.03. Following the transaction, the insider now directly owns 144,228 shares in the company, valued at $3,393,684.84. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Charles F. Kessler sold 3,573 shares of the company’s stock in a transaction that occurred on Wednesday, April 24th. The shares were sold at an average price of $23.00, for a total value of $82,179.00. Following the completion of the transaction, the insider now owns 132,618 shares in the company, valued at $3,050,214. The disclosure for this sale can be found here. Corporate insiders own 7.20% of the company’s stock.

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Federated Investors Inc. PA lifted its stake in American Eagle Outfitters by 64.6% during the first quarter. Federated Investors Inc. PA now owns 666,542 shares of the apparel retailer’s stock worth $14,777,000 after purchasing an additional 261,578 shares in the last quarter. Lombard Odier Asset Management USA Corp purchased a new stake in shares of American Eagle Outfitters during the first quarter worth $2,771,000. GAM Holding AG increased its position in shares of American Eagle Outfitters by 64.2% during the fourth quarter. GAM Holding AG now owns 56,827 shares of the apparel retailer’s stock worth $1,079,000 after acquiring an additional 22,223 shares during the period. Vanguard Group Inc increased its position in shares of American Eagle Outfitters by 9.8% during the third quarter. Vanguard Group Inc now owns 17,117,791 shares of the apparel retailer’s stock worth $425,035,000 after acquiring an additional 1,521,279 shares during the period. Finally, D. E. Shaw & Co. Inc. purchased a new stake in shares of American Eagle Outfitters during the fourth quarter worth $15,677,000. Hedge funds and other institutional investors own 90.74% of the company’s stock.

American Eagle Outfitters, Inc operates as a specialty retailer that provides clothing, accessories, and personal care products under the American Eagle and Aerie brands. The company also provides jeans, and other apparel and accessories for men and women; and intimates, activewear, and swim collections, as well as personal care products for women.

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