American Eagle Outfitters (NYSE:AEO) Stock Price Down 5% – What’s Next?

Shares of American Eagle Outfitters, Inc. (NYSE:AEO) were down 5% on Wednesday . The stock traded as low as $16.47 and last traded at $16.49. 1,769,935 shares were traded during mid-day trading, a decline of 67% from the average daily volume of 5,318,652 shares. The stock had previously closed at $17.36.

Analyst Ratings Changes

Several equities research analysts have issued reports on the stock. Bank of America dropped their target price on shares of American Eagle Outfitters from $20.00 to $16.00 and set an “underperform” rating for the company in a research report on Friday, May 29th. JPMorgan Chase & Co. decreased their price target on shares of American Eagle Outfitters from $25.00 to $19.00 and set a “neutral” rating on the stock in a report on Friday, May 29th. Citigroup dropped their price objective on shares of American Eagle Outfitters from $24.00 to $18.00 and set a “neutral” rating for the company in a report on Monday, June 1st. TD Cowen cut their target price on shares of American Eagle Outfitters from $19.00 to $18.00 and set a “hold” rating for the company in a research report on Monday, May 18th. Finally, Barclays reduced their target price on American Eagle Outfitters from $19.00 to $17.00 and set an “equal weight” rating on the stock in a research note on Friday, May 29th. Two analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, American Eagle Outfitters presently has a consensus rating of “Hold” and a consensus target price of $19.91.

American Eagle Outfitters Stock Performance

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 company has a 50 day simple moving average of $17.38 and a 200-day simple moving average of $18.73. The firm has a market cap of $2.73 billion, a PE ratio of 10.05, a price-to-earnings-growth ratio of 4.00 and a beta of 1.32.

American Eagle Outfitters (NYSE:AEO) last posted its quarterly earnings results on Thursday, May 28th. The apparel retailer reported $0.14 EPS for the quarter, topping the consensus estimate of $0.11 by $0.03. The firm had revenue of $1.20 billion for 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 business’s revenue was up 9.7% compared to the same quarter last year. During the same period last year, the firm posted ($0.29) earnings per share. As a group, equities research analysts anticipate that American Eagle Outfitters, Inc. will post 1.76 EPS for the current year.

American Eagle Outfitters Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, July 24th. Investors of record on Friday, July 10th were given a $0.125 dividend. This represents a $0.50 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date was Friday, July 10th. American Eagle Outfitters’s dividend payout ratio (DPR) is presently 30.86%.

Insiders Place Their Bets

In other news, Director Noel Joseph Spiegel sold 2,892 shares of the business’s stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $16.78, for a total value of $48,527.76. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Cary D. Mcmillan sold 2,892 shares of the stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $16.77, for a total value of $48,498.84. The SEC filing for this sale provides additional information. Insiders sold 11,563 shares of company stock valued at $196,599 over the last three months. Insiders own 8.95% of the company’s stock.

Institutional Trading of American Eagle Outfitters

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. BlackRock Inc. purchased a new stake in American Eagle Outfitters in the 2nd quarter worth approximately $458,632,000. Marshall Wace LLP increased its stake in shares of American Eagle Outfitters by 920.6% during the third quarter. Marshall Wace LLP now owns 5,497,720 shares of the apparel retailer’s stock valued at $94,066,000 after buying an additional 4,959,039 shares during the period. Arrowstreet Capital Limited Partnership increased its stake in shares of American Eagle Outfitters by 162.9% during the first quarter. Arrowstreet Capital Limited Partnership now owns 6,336,392 shares of the apparel retailer’s stock valued at $105,818,000 after buying an additional 3,926,230 shares during the period. Bank of New York Mellon Corp bought a new position in shares of American Eagle Outfitters during the second quarter valued at approximately $27,637,000. Finally, Balyasny Asset Management L.P. purchased a new stake in American Eagle Outfitters in the fourth quarter worth $40,954,000. 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.