American Eagle Outfitters (NYSE:AEO) Price Target Lowered to $18.00 at Telsey Advisory Group

American Eagle Outfitters (NYSE:AEO) had its price target dropped by equities research analysts at Telsey Advisory Group from $20.00 to $18.00 in a note issued to investors on Thursday, Briefing.com reports. The firm currently has a “market perform” rating on the apparel retailer’s stock. Telsey Advisory Group’s price objective points to a potential upside of 6.48% from the company’s previous close.

AEO has been the topic of several other research reports. William Blair reaffirmed a “buy” rating on shares of American Eagle Outfitters in a report on Wednesday, July 15th. JPMorgan Chase & Co. lifted their price objective on American Eagle Outfitters from $19.00 to $21.00 and gave the company a “neutral” rating in a research note on Tuesday, August 18th. BMO Capital Markets assumed coverage on American Eagle Outfitters in a research report on Tuesday. They set a “market perform” rating and a $18.00 target price for the company. Wall Street Zen upgraded American Eagle Outfitters from a “hold” rating to a “buy” rating in a research note on Saturday, September 5th. Finally, Barclays lowered their price target on American Eagle Outfitters from $19.00 to $17.00 and set an “equal weight” rating on the stock in a report on Friday, May 29th. Two investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, American Eagle Outfitters presently has an average rating of “Hold” and a consensus target price of $20.00.

American Eagle Outfitters Price Performance

Shares of NYSE:AEO opened at $16.91 on Thursday. The company has a 50 day moving average of $17.01 and a 200 day moving average of $17.63. The stock has a market cap of $2.83 billion, a P/E ratio of 10.44, a P/E/G ratio of 3.76 and a beta of 1.33. American Eagle Outfitters has a 12 month low of $14.06 and a 12 month high of $28.46. The company has a current ratio of 1.55, a quick ratio of 0.53 and a debt-to-equity ratio of 0.05.

American Eagle Outfitters (NYSE:AEO) last posted its earnings results on Wednesday, September 9th. The apparel retailer reported $0.79 earnings per share for the quarter, topping analysts’ consensus estimates of $0.22 by $0.57. American Eagle Outfitters had a net margin of 5.01% and a return on equity of 20.95%. The business had revenue of $1.38 billion for the quarter, compared to analyst estimates of $1.37 billion. During the same quarter in the prior year, the firm posted $0.45 EPS. American Eagle Outfitters’s revenue was up 7.5% on a year-over-year basis. As a group, sell-side analysts forecast that American Eagle Outfitters will post 1.76 EPS for the current fiscal year.

Insider Activity at American Eagle Outfitters

In other American Eagle Outfitters news, Director Noel Spiegel sold 2,892 shares of the business’s stock in a transaction that occurred on Tuesday, July 7th. The stock was sold at an average price of $16.78, for a total value of $48,527.76. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director David M. Sable sold 5,779 shares of the business’s stock in a transaction that occurred on Friday, July 17th. The shares were sold at an average price of $17.23, for a total value of $99,572.17. Following the completion of the sale, the director owned 53,481 shares of the company’s stock, valued at $921,477.63. The trade was a 9.75% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 11,563 shares of company stock worth $196,599 in the last ninety days. 8.95% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. BlackRock Inc. bought a new stake in American Eagle Outfitters during the 2nd quarter valued at $458,632,000. Dimensional Fund Advisors LP increased its position in shares of American Eagle Outfitters by 5.8% in the first quarter. Dimensional Fund Advisors LP now owns 9,261,614 shares of the apparel retailer’s stock valued at $154,663,000 after acquiring an additional 509,326 shares during the period. State Street Corp increased its position in shares of American Eagle Outfitters by 0.6% in the fourth quarter. State Street Corp now owns 6,606,362 shares of the apparel retailer’s stock valued at $174,210,000 after acquiring an additional 39,334 shares during the period. Arrowstreet Capital Limited Partnership raised 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 acquiring an additional 3,926,230 shares during the last quarter. Finally, Goldman Sachs Group Inc. raised its stake in shares of American Eagle Outfitters by 12.8% during the fourth quarter. Goldman Sachs Group Inc. now owns 6,000,419 shares of the apparel retailer’s stock valued at $158,231,000 after acquiring an additional 680,332 shares during the last quarter. 97.33% of the stock is owned by hedge funds and other institutional investors.

American Eagle Outfitters News Summary

Here are the key news stories impacting American Eagle Outfitters this week:

• Positive Sentiment: Quarterly results significantly exceeded expectations: AEO reported adjusted earnings of $0.79 per share versus consensus estimates near $0.21-$0.22, while revenue increased approximately 7.5%-8% year over year to $1.38 billion, slightly ahead of forecasts. American Eagle Outfitters Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Aerie and OFFLINE provided growth: Strong demand for Aerie intimates, sleepwear and apparel helped drive the revenue beat, with the broader portfolio posting a 6% comparable-sales increase. American Eagle Outfitters Beats Quarterly Revenue Estimates
• Neutral Sentiment: Annual outlook was maintained: AEO stuck with its full-year sales forecast, but management’s commentary indicated that cautious consumer spending and ongoing execution work remain important considerations.
• Negative Sentiment: Margin outlook disappointed investors: The company forecast a roughly flat quarterly gross margin, reinforcing concerns that inflation, tariffs and promotional pressure could limit the benefit of sales growth. American Eagle Shares Slide as Flat Margin Outlook and Weak Core Brand Weigh
• Negative Sentiment: Core-brand performance remains weak: Comparable sales at the flagship American Eagle brand declined 1%, contrasting with stronger Aerie performance. Management acknowledged there is still “work to do” to stabilize the core business.
• Negative Sentiment: Profit quality raised concerns: Second-quarter gross profit and the full-year operating-income outlook benefited materially from tariff refunds. Investors appear concerned that these benefits are nonrecurring, while higher inventory and weaker merchandise margins at the American Eagle brand may pressure future results. American Eagle Outfitters Q2 Profit and Gross Margin Inflated by Tariff Refunds

American Eagle Outfitters Company Profile

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.