American Eagle Outfitters (NYSE:AEO) Upgraded at BMO Capital Markets

BMO Capital Markets upgraded shares of American Eagle Outfitters (NYSE:AEO) to a hold rating in a research report report published on Tuesday,Zacks reports.

A number of other research firms have also recently commented on AEO. Citigroup dropped their price objective on American Eagle Outfitters from $24.00 to $18.00 and set a “neutral” rating for the company in a research report on Monday, June 1st. Telsey Advisory Group reduced their target price on shares of American Eagle Outfitters from $20.00 to $18.00 and set a “market perform” rating on the stock in a report on Thursday. TD Cowen decreased their price target on shares of American Eagle Outfitters from $19.00 to $18.00 and set a “hold” rating on the stock in a research note on Monday, May 18th. Morgan Stanley lowered their price target on shares of American Eagle Outfitters from $18.00 to $17.00 and set an “equal weight” rating for the company in a report on Thursday. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of American Eagle Outfitters in a research report on Thursday, August 27th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $19.36.

American Eagle Outfitters Stock Performance

American Eagle Outfitters stock opened at $14.53 on Tuesday. The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.53 and a current ratio of 1.55. The stock has a fifty day moving average of $16.97 and a two-hundred day moving average of $17.55. The company has a market capitalization of $2.44 billion, a price-to-earnings ratio of 7.42, a PEG ratio of 3.69 and a beta of 1.33. American Eagle Outfitters has a fifty-two week low of $14.06 and a fifty-two week high of $28.46.

American Eagle Outfitters (NYSE:AEO) last issued its quarterly earnings data on Wednesday, September 9th. The apparel retailer reported $0.79 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.22 by $0.57. American Eagle Outfitters had a return on equity of 24.02% and a net margin of 5.91%.The business had revenue of $1.38 billion for the quarter, compared to the consensus estimate of $1.37 billion. During the same period in the prior year, the business earned $0.45 earnings per share. The business’s revenue was up 7.5% on a year-over-year basis. On average, analysts anticipate that American Eagle Outfitters will post 1.76 EPS for the current fiscal year.

Insider Activity

In related news, Director David M. Sable sold 5,779 shares of the stock in a transaction dated Friday, July 17th. The stock was sold at an average price of $17.23, for a total transaction of $99,572.17. Following the transaction, the director directly owned 53,481 shares in the company, valued at approximately $921,477.63. This represents a 9.75% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Cary McMillan sold 2,892 shares of the firm’s stock in a transaction dated Tuesday, July 7th. The stock was 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 a total of 11,563 shares of company stock valued at $196,599 over the last quarter. Company insiders own 8.95% of the company’s stock.

Institutional Trading of American Eagle Outfitters

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Kemnay Advisory Services Inc. acquired a new position in shares of American Eagle Outfitters during the 4th quarter valued at about $31,000. Aster Capital Management DIFC Ltd purchased a new position in shares of American Eagle Outfitters during the 4th quarter worth about $32,000. Plato Investment Management Ltd acquired a new stake in shares of American Eagle Outfitters in the second quarter worth approximately $25,000. Quadrant Capital Group LLC boosted its position in shares of American Eagle Outfitters by 31.8% in the fourth quarter. Quadrant Capital Group LLC now owns 1,852 shares of the apparel retailer’s stock worth $49,000 after acquiring an additional 447 shares during the last quarter. Finally, Allworth Financial LP purchased a new stake in American Eagle Outfitters in the second quarter valued at approximately $36,000. Hedge funds and other institutional investors own 97.33% of the company’s stock.

Key American Eagle Outfitters News

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

• Positive Sentiment: Second-quarter revenue increased 8% year over year to approximately $1.38 billion, narrowly exceeding estimates. Total comparable sales rose 6%, supported by Aerie and OFFLINE, while earnings of $0.79 per share significantly surpassed the roughly $0.22 consensus estimate. American Eagle Outfitters beats quarterly revenue estimates
• Positive Sentiment: Management cited strength in Aerie intimates, sleepwear and apparel, and issued a stronger fiscal 2026 operating-income outlook that incorporates tariff-related benefits. The company’s low leverage and ongoing brand improvement provide additional financial support. American Eagle Q2 Earnings Beat on Tariff Refunds, Aerie Strength
• Neutral Sentiment: Analysts reduced price targets following the report: Morgan Stanley lowered its target to $17 and Telsey Advisory Group to $18, while UBS cut its target to $27 but retained a Buy rating. These targets remain above the recent trading level, but the revisions signal reduced confidence in near-term execution.
• Negative Sentiment: The headline profit beat was substantially helped by an estimated $161 million in tariff refunds, raising concerns about earnings durability. Without that benefit, underlying profitability and merchandise margins would have appeared less robust. American Eagle shares slide as flat margin outlook, weak core brand weigh
• Negative Sentiment: American Eagle’s core-brand comparable sales fell 1%, and management acknowledged that more work is needed on the banner. Aerie’s sales growth also slowed, while the company maintained its annual same-store-sales forecast and projected flat third-quarter gross margins. Investors interpreted the outlook as evidence that cautious consumers and brand pressure remain unresolved. American Eagle Stock Slumps on Signs of Weakness at Namesake Brand

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.