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

American Eagle Outfitters, Inc. (NYSE:AEO) shares dropped 5% during trading on Wednesday . The stock traded as low as $16.47 and last traded at $16.49. Approximately 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.

Analysts Set New Price Targets

AEO has been the topic of a number of analyst reports. JPMorgan Chase & Co. dropped their price target on American Eagle Outfitters from $25.00 to $19.00 and set a “neutral” rating on the stock in a research report on Friday, May 29th. Weiss Ratings lowered American Eagle Outfitters from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday, June 1st. Barclays lowered their target price on shares of 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. Bank of America reduced their price target on shares of American Eagle Outfitters from $20.00 to $16.00 and set an “underperform” rating for the company in a research note on Friday, May 29th. Finally, Morgan Stanley reissued an “equal weight” rating and set a $18.00 price objective on shares of American Eagle Outfitters in a report on Monday, July 6th. Two investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, American Eagle Outfitters currently has an average rating of “Hold” and an average target price of $19.91.

American Eagle Outfitters Stock Performance

The company has a market cap of $2.73 billion, a PE ratio of 10.05, a PEG ratio of 4.00 and a beta of 1.32. 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 business has a 50-day moving average of $17.38 and a 200 day moving average of $18.73.

American Eagle Outfitters (NYSE:AEO) last announced its earnings results on Thursday, May 28th. The apparel retailer reported $0.14 earnings per share (EPS) for the quarter, topping the consensus estimate 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 business had revenue of $1.20 billion for the quarter, compared to analysts’ expectations of $1.18 billion. During the same period last year, the firm posted ($0.29) earnings per share. The business’s revenue for the quarter was up 9.7% on a year-over-year basis. Equities research analysts anticipate that American Eagle Outfitters, Inc. will post 1.76 EPS for the current fiscal year.

American Eagle Outfitters Dividend Announcement

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

Insider Transactions at American Eagle Outfitters

In other news, Director Noel Joseph Spiegel sold 2,892 shares of American Eagle Outfitters 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 sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director David M. Sable sold 5,779 shares of the business’s stock in a transaction on Friday, July 17th. The shares were sold at an average price of $17.23, for a total transaction of $99,572.17. Following the sale, the director directly owned 53,481 shares of the company’s stock, valued at approximately $921,477.63. The trade was a 9.75% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 11,563 shares of company stock worth $196,599 in the last 90 days. 8.95% of the stock is currently owned by insiders.

Institutional Trading of American Eagle Outfitters

Several hedge funds have recently bought and sold shares of AEO. Kemnay Advisory Services Inc. bought a new position in shares of American Eagle Outfitters during the 4th quarter valued at approximately $31,000. Aster Capital Management DIFC Ltd bought a new stake in shares of American Eagle Outfitters during the 4th quarter valued at $32,000. Plato Investment Management Ltd bought a new stake in shares of American Eagle Outfitters during the 2nd quarter valued at $25,000. Farther Finance Advisors LLC lifted its stake in shares of American Eagle Outfitters by 177.2% during the 4th quarter. Farther Finance Advisors LLC now owns 1,774 shares of the apparel retailer’s stock valued at $47,000 after buying an additional 1,134 shares in the last quarter. Finally, Quadrant Capital Group LLC increased its stake in American Eagle Outfitters by 31.8% in the 4th quarter. Quadrant Capital Group LLC now owns 1,852 shares of the apparel retailer’s stock worth $49,000 after buying an additional 447 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.