American Eagle Outfitters (NYSE:AEO) Trading 7% Higher – What’s Next?

American Eagle Outfitters, Inc. (NYSE:AEO) was up 7% on Wednesday . The stock traded as high as $17.19 and last traded at $17.2770. Approximately 1,353,457 shares traded hands during mid-day trading, a decline of 75% from the average daily volume of 5,498,572 shares. The stock had previously closed at $16.15.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on AEO shares. Telsey Advisory Group dropped their target price on American Eagle Outfitters from $25.00 to $20.00 and set a “market perform” rating on the stock in a report on Friday, May 29th. William Blair reaffirmed a “buy” rating on shares of American Eagle Outfitters in a research report on Wednesday. Weiss Ratings lowered shares of American Eagle Outfitters from a “hold (c+)” rating to a “hold (c)” rating in a research note on Monday, June 1st. TD Cowen dropped their price objective on shares of American Eagle Outfitters from $19.00 to $18.00 and set a “hold” rating on the stock in a research note on Monday, May 18th. Finally, Wall Street Zen cut shares of American Eagle Outfitters from a “buy” rating to a “hold” rating in a research report on Sunday, July 12th. Two analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $19.91.

American Eagle Outfitters Stock Performance

The firm has a market capitalization of $2.92 billion, a PE ratio of 10.77, a price-to-earnings-growth ratio of 3.80 and a beta of 1.31. The company has a debt-to-equity ratio of 0.05, a current ratio of 1.55 and a quick ratio of 0.53. The stock has a 50-day moving average price of $16.86 and a 200-day moving average price of $19.85.

American Eagle Outfitters (NYSE:AEO) last issued its quarterly earnings results on Thursday, May 28th. The apparel retailer reported $0.14 EPS for the quarter, beating analysts’ consensus estimates of $0.11 by $0.03. American Eagle Outfitters had a return on equity of 20.95% and a net margin of 5.01%.The firm had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.18 billion. During the same quarter in the prior year, the business posted ($0.29) earnings per share. American Eagle Outfitters’s revenue for the quarter was up 9.7% on a year-over-year basis. On average, research analysts expect that American Eagle Outfitters, Inc. will post 1.76 EPS for the current fiscal year.

American Eagle Outfitters Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 24th. Stockholders of record on Friday, July 10th will be paid a dividend of $0.125 per share. This represents a $0.50 annualized dividend and a dividend yield of 2.9%. The ex-dividend date is Friday, July 10th. American Eagle Outfitters’s dividend payout ratio is 30.86%.

Insider Buying and Selling

In other news, Director Cary D. Mcmillan sold 2,892 shares of the firm’s stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $16.77, for a total transaction of $48,498.84. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Noel Joseph Spiegel sold 2,892 shares of the company’s stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $16.78, for a total transaction of $48,527.76. The disclosure for this sale is available in the SEC filing. 8.95% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On American Eagle Outfitters

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Strategic Investment Solutions Inc. IL lifted its position in shares of American Eagle Outfitters by 50.0% during the third quarter. Strategic Investment Solutions Inc. IL now owns 1,500 shares of the apparel retailer’s stock worth $26,000 after purchasing an additional 500 shares during the last quarter. Kemnay Advisory Services Inc. bought a new stake in American Eagle Outfitters in the fourth quarter valued at about $31,000. Aster Capital Management DIFC Ltd bought a new stake in American Eagle Outfitters in the fourth quarter valued at about $32,000. Raymond James Financial Inc. acquired a new stake in American Eagle Outfitters during the second quarter valued at approximately $35,000. Finally, Federated Hermes Inc. raised its stake in American Eagle Outfitters by 151.0% during the second quarter. Federated Hermes Inc. now owns 3,848 shares of the apparel retailer’s stock valued at $37,000 after buying an additional 2,315 shares in the last quarter. Institutional investors own 97.33% of the company’s stock.

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.