American Eagle Outfitters (NYSE:AEO) Shares Gap Down After Analyst Downgrade

American Eagle Outfitters, Inc. (NYSE:AEO – Get Rating) shares gapped down prior to trading on Thursday after BMO Capital Markets lowered their price target on the stock from $14.00 to $10.00. The stock had previously closed at $12.07, but opened at $10.09. American Eagle Outfitters shares last traded at $10.18, with a volume of 3,312,107 shares trading hands.

Several other research firms also recently weighed in on AEO. Barclays dropped their target price on shares of American Eagle Outfitters from $13.00 to $11.00 in a report on Thursday. Deutsche Bank Aktiengesellschaft dropped their target price on shares of American Eagle Outfitters from $17.00 to $14.00 in a report on Thursday. Telsey Advisory Group restated a “market perform” rating and set a $17.00 target price on shares of American Eagle Outfitters in a report on Thursday, March 2nd. UBS Group dropped their target price on shares of American Eagle Outfitters from $22.00 to $19.00 and set a “buy” rating for the company in a report on Wednesday, March 29th. Finally, StockNews.com started coverage on shares of American Eagle Outfitters in a report on Thursday, May 18th. They set a “hold” rating for the company. Two analysts have rated the stock with a sell rating, ten have assigned a hold rating and one has assigned a buy rating to the stock. Based on data from MarketBeat, American Eagle Outfitters presently has a consensus rating of “Hold” and a consensus target price of $13.38.

Insider Buying and Selling

In related news, EVP Michael R. Rempell sold 2,967 shares of the firm’s stock in a transaction that occurred on Monday, April 10th. The shares were sold at an average price of $13.56, for a total value of $40,232.52. Following the sale, the executive vice president now directly owns 172,003 shares of the company’s stock, valued at $2,332,360.68. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. In related news, EVP Michael R. Rempell sold 12,510 shares of the firm’s stock in a transaction that occurred on Monday, March 27th. The shares were sold at an average price of $13.13, for a total value of $164,256.30. Following the transaction, the executive vice president now owns 172,003 shares in the company, valued at $2,258,399.39. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Michael R. Rempell sold 2,967 shares of the firm’s stock in a transaction that occurred on Monday, April 10th. The shares were sold at an average price of $13.56, for a total transaction of $40,232.52. Following the completion of the transaction, the executive vice president now owns 172,003 shares in the company, valued at approximately $2,332,360.68. The disclosure for this sale can be found here. Over the last three months, insiders have sold 43,202 shares of company stock valued at $599,822. Insiders own 7.50% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the business. FMR LLC raised its holdings in American Eagle Outfitters by 0.4% in the first quarter. FMR LLC now owns 28,228,744 shares of the apparel retailer’s stock valued at $379,394,000 after buying an additional 117,903 shares during the period. BlackRock Inc. raised its holdings in American Eagle Outfitters by 25.9% in the third quarter. BlackRock Inc. now owns 24,356,394 shares of the apparel retailer’s stock valued at $236,988,000 after buying an additional 5,013,262 shares during the period. Vanguard Group Inc. raised its holdings in American Eagle Outfitters by 15.6% in the third quarter. Vanguard Group Inc. now owns 17,571,205 shares of the apparel retailer’s stock valued at $170,967,000 after buying an additional 2,369,726 shares during the period. Dimensional Fund Advisors LP raised its stake in shares of American Eagle Outfitters by 26.1% during the first quarter. Dimensional Fund Advisors LP now owns 9,231,083 shares of the apparel retailer’s stock valued at $124,063,000 after purchasing an additional 1,913,492 shares during the period. Finally, Cooke & Bieler LP raised its stake in shares of American Eagle Outfitters by 10.1% during the third quarter. Cooke & Bieler LP now owns 8,399,160 shares of the apparel retailer’s stock valued at $81,724,000 after purchasing an additional 771,320 shares during the period. Hedge funds and other institutional investors own 93.34% of the company’s stock.

American Eagle Outfitters Price Performance

The company has a market cap of $2.10 billion, a PE ratio of 17.15, a price-to-earnings-growth ratio of 0.82 and a beta of 1.52. The business’s 50 day moving average price is $13.10 and its 200-day moving average price is $14.17. The company has a quick ratio of 0.67, a current ratio of 1.43 and a debt-to-equity ratio of 0.01.

American Eagle Outfitters (NYSE:AEO – Get Rating) last posted its quarterly earnings data on Wednesday, May 24th. The apparel retailer reported $0.17 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.17. The company had revenue of $1.08 billion for the quarter, compared to analyst estimates of $1.07 billion. American Eagle Outfitters had a net margin of 2.51% and a return on equity of 13.27%. The business’s quarterly revenue was up 2.5% on a year-over-year basis. During the same quarter last year, the firm posted $0.16 earnings per share. As a group, analysts forecast that American Eagle Outfitters, Inc. will post 1.12 earnings per share for the current year.

American Eagle Outfitters Cuts Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, April 21st. Investors of record on Thursday, April 6th were paid a $0.10 dividend. The ex-dividend date of this dividend was Wednesday, April 5th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 3.76%. American Eagle Outfitters’s dividend payout ratio (DPR) is presently 64.52%.

American Eagle Outfitters Company Profile

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American Eagle Outfitters, Inc is a multi-brand specialty retailer, which offers an assortment of apparel and accessories for men and women under the American Eagle Outfitters brand, and intimates, apparel and personal care products for women under the Aerie brand. The firm operates stores in the United States, Canada, Mexico, Hong Kong, China and the United Kingdom.