American Eagle Outfitters (NYSE:AEO) Shares Gap Down – Here’s Why

American Eagle Outfitters, Inc. (NYSE:AEO) gapped down before the market opened on Monday . The stock had previously closed at $26.82, but opened at $24.28. American Eagle Outfitters shares last traded at $24.3310, with a volume of 2,275,664 shares.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on AEO shares. UBS Group upped their price objective on shares of American Eagle Outfitters from $31.00 to $35.00 and gave the company a “buy” rating in a report on Thursday. Telsey Advisory Group increased their price target on American Eagle Outfitters from $18.00 to $25.00 and gave the stock a “market perform” rating in a report on Wednesday, December 3rd. JPMorgan Chase & Co. raised American Eagle Outfitters from an “underweight” rating to a “neutral” rating and raised their price objective for the company from $14.00 to $20.00 in a research note on Wednesday, December 3rd. Citigroup upped their target price on American Eagle Outfitters from $18.00 to $23.00 and gave the stock a “neutral” rating in a research report on Wednesday, December 3rd. Finally, Zacks Research upgraded American Eagle Outfitters from a “hold” rating to a “strong-buy” rating in a report on Friday, October 24th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, eleven have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $22.18.

American Eagle Outfitters Stock Down 3.2%

The company has a market cap of $4.40 billion, a P/E ratio of 22.38 and a beta of 1.39. 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 fifty day moving average price of $22.68 and a two-hundred day moving average price of $17.11.

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

American Eagle Outfitters Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, January 23rd. Investors of record on Friday, January 9th will be given a dividend of $0.125 per share. This represents a $0.50 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date of this dividend is Friday, January 9th. American Eagle Outfitters’s dividend payout ratio (DPR) is presently 43.10%.

Insider Transactions at American Eagle Outfitters

In other American Eagle Outfitters news, insider Jennifer M. Foyle sold 243,047 shares of the company’s stock in a transaction dated Friday, December 5th. The shares were sold at an average price of $24.30, for a total value 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. This represents a 55.90% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 8.70% of the company’s stock.

Hedge Funds Weigh In On American Eagle Outfitters

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Strategic Investment Solutions Inc. IL increased 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 valued at $26,000 after acquiring an additional 500 shares during the last quarter. Raymond James Financial Inc. bought a new position in American Eagle Outfitters in the 2nd quarter valued at $35,000. Strs Ohio purchased a new stake in shares of American Eagle Outfitters during the 3rd quarter valued at $36,000. Federated Hermes Inc. raised its stake in shares of American Eagle Outfitters by 151.0% during the 2nd quarter. Federated Hermes Inc. now owns 3,848 shares of the apparel retailer’s stock worth $37,000 after purchasing an additional 2,315 shares during the period. Finally, McIlrath & Eck LLC bought a new stake in shares of American Eagle Outfitters during the 3rd quarter worth $39,000. Hedge funds and other 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.