American Eagle Outfitters (NYSE:AEO) Trading Down 6.9% – What’s Next?

Shares of American Eagle Outfitters, Inc. (NYSE:AEO) were down 6.9% during trading on Monday . The stock traded as low as $22.84 and last traded at $22.88. Approximately 1,762,084 shares changed hands during mid-day trading, a decline of 67% from the average daily volume of 5,325,930 shares. The stock had previously closed at $24.57.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the stock. The Goldman Sachs Group started coverage on shares of American Eagle Outfitters in a report on Thursday, December 11th. They issued a “neutral” rating and a $25.00 price target on the stock. Citigroup upped their price target on American Eagle Outfitters from $18.00 to $23.00 and gave the company a “neutral” rating in a research report on Wednesday, December 3rd. Barclays increased their price target on American Eagle Outfitters from $20.00 to $24.00 and gave the stock an “underweight” rating in a research note on Tuesday, January 6th. Royal Bank Of Canada set a $23.00 price objective on American Eagle Outfitters in a research note on Wednesday, December 3rd. Finally, Morgan Stanley set a $23.00 target price on shares of American Eagle Outfitters in a research report on Wednesday, December 3rd. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, eleven have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, American Eagle Outfitters currently has a consensus rating of “Hold” and a consensus target price of $22.45.

American Eagle Outfitters Stock Performance

The business’s fifty day moving average price is $25.26 and its 200-day moving average price is $20.47. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.63 and a quick ratio of 0.59. The stock has a market capitalization of $3.82 billion, a PE ratio of 19.43, a P/E/G ratio of 6.43 and a beta of 1.39.

American Eagle Outfitters (NYSE:AEO) last announced its quarterly earnings results on Tuesday, December 2nd. The apparel retailer reported $0.53 EPS for the quarter, beating the consensus estimate of $0.43 by $0.10. The firm had revenue of $1.36 billion during the quarter, compared to the consensus estimate of $1.32 billion. American Eagle Outfitters had a net margin of 3.90% and a return on equity of 13.82%. The business’s quarterly revenue was up 2.9% compared to the same quarter last year. During the same period last year, the firm earned $0.48 EPS. As a group, equities research analysts expect that American Eagle Outfitters, Inc. will post 1.7 EPS for the current year.

American Eagle Outfitters Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, January 23rd. Investors of record on Friday, January 9th were paid a $0.125 dividend. This represents a $0.50 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date of this dividend was Friday, January 9th. American Eagle Outfitters’s dividend payout ratio (DPR) is currently 43.10%.

Insider Activity

In other news, insider Jennifer M. Foyle sold 243,047 shares of American Eagle Outfitters stock in a transaction on Friday, December 5th. The shares were sold at an average price of $24.30, for a total transaction of $5,906,042.10. Following the completion of the sale, the insider directly owned 191,751 shares of the company’s stock, valued at approximately $4,659,549.30. The trade was a 55.90% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Cary D. Mcmillan sold 1,896 shares of the stock in a transaction on Wednesday, January 14th. The shares were sold at an average price of $26.21, for a total value of $49,694.16. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 246,839 shares of company stock worth $6,004,388. 8.70% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in AEO. Invesco Ltd. boosted its stake in shares of American Eagle Outfitters by 10.3% in the 4th quarter. Invesco Ltd. now owns 769,161 shares of the apparel retailer’s stock valued at $20,283,000 after purchasing an additional 71,858 shares in the last quarter. Mercer Global Advisors Inc. ADV lifted its stake in American Eagle Outfitters by 34.5% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 21,207 shares of the apparel retailer’s stock worth $559,000 after purchasing an additional 5,441 shares during the last quarter. Mackenzie Financial Corp boosted its position in American Eagle Outfitters by 757.0% during the fourth quarter. Mackenzie Financial Corp now owns 96,674 shares of the apparel retailer’s stock valued at $2,575,000 after buying an additional 85,394 shares during the period. CacheTech Inc. bought a new position in shares of American Eagle Outfitters during the fourth quarter valued at about $237,000. Finally, Fuller & Thaler Asset Management Inc. increased its holdings in shares of American Eagle Outfitters by 9.3% in the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 2,952,866 shares of the apparel retailer’s stock worth $77,867,000 after buying an additional 250,084 shares during the period. 97.33% of the stock is owned by hedge funds and other institutional investors.

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.