American Eagle Outfitters (NYSE:AEO) Sets New 52-Week Low – Should You Sell?

American Eagle Outfitters, Inc. (NYSE:AEO)’s share price hit a new 52-week low during mid-day trading on Friday . The company traded as low as $14.07 and last traded at $14.10, with a volume of 520523 shares traded. The stock had previously closed at $14.39.

Wall Street Analyst Weigh In

AEO has been the topic of a number of recent analyst reports. BMO Capital Markets cut their price objective on American Eagle Outfitters from $22.00 to $20.00 and set a “market perform” rating on the stock in a research report on Thursday, December 5th. UBS Group cut their price objective on American Eagle Outfitters from $34.00 to $32.00 and set a “buy” rating on the stock in a research report on Thursday, December 5th. Telsey Advisory Group decreased their target price on American Eagle Outfitters from $20.00 to $18.00 and set a “market perform” rating for the company in a research report on Tuesday, January 14th. Barclays restated an “equal weight” rating and set a $17.00 price target (down from $19.00) on shares of American Eagle Outfitters in a research report on Wednesday, February 5th. Finally, JPMorgan Chase & Co. cut their price objective on shares of American Eagle Outfitters from $23.00 to $20.00 and set a “neutral” rating on the stock in a report on Wednesday, January 8th. Eleven research analysts have rated the stock with a hold rating and one has assigned a buy rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and an average price target of $21.00.

American Eagle Outfitters Price Performance

The firm has a 50-day simple moving average of $16.07 and a 200-day simple moving average of $18.56. The firm has a market capitalization of $2.64 billion, a PE ratio of 11.76, a PEG ratio of 0.85 and a beta of 1.53.

American Eagle Outfitters (NYSE:AEO) last announced its earnings results on Wednesday, December 4th. The apparel retailer reported $0.48 EPS for the quarter, topping analysts’ consensus estimates of $0.46 by $0.02. American Eagle Outfitters had a return on equity of 20.75% and a net margin of 4.28%. The company had revenue of $1.29 billion for the quarter, compared to analysts’ expectations of $1.30 billion. During the same period last year, the firm earned $0.49 EPS. American Eagle Outfitters’s revenue for the quarter was down .9% compared to the same quarter last year. Equities analysts expect that American Eagle Outfitters, Inc. will post 1.7 earnings per share for the current year.

American Eagle Outfitters Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, January 24th. Investors of record on Friday, January 10th were issued a $0.125 dividend. The ex-dividend date was Friday, January 10th. This represents a $0.50 dividend on an annualized basis and a yield of 3.64%. American Eagle Outfitters’s dividend payout ratio is presently 42.74%.

Insider Buying and Selling at American Eagle Outfitters

In other American Eagle Outfitters news, Director Cary D. Mcmillan sold 2,999 shares of American Eagle Outfitters stock in a transaction that occurred on Thursday, January 16th. The stock was sold at an average price of $16.02, for a total value of $48,043.98. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Insiders own 7.30% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of AEO. Creative Planning boosted its stake in American Eagle Outfitters by 15.3% during the third quarter. Creative Planning now owns 24,222 shares of the apparel retailer’s stock worth $542,000 after buying an additional 3,209 shares during the period. Sequoia Financial Advisors LLC bought a new position in American Eagle Outfitters in the 3rd quarter valued at $226,000. Hennion & Walsh Asset Management Inc. grew its position in American Eagle Outfitters by 8.5% in the 3rd quarter. Hennion & Walsh Asset Management Inc. now owns 36,267 shares of the apparel retailer’s stock valued at $812,000 after acquiring an additional 2,855 shares during the last quarter. Mount Yale Investment Advisors LLC purchased a new position in American Eagle Outfitters in the 3rd quarter worth about $199,000. Finally, Wealth Enhancement Advisory Services LLC bought a new position in American Eagle Outfitters in the 3rd quarter worth about $233,000. 97.33% of the stock is owned by hedge funds and other institutional investors.

About American Eagle Outfitters

American Eagle Outfitters, Inc operates as a multi-brand specialty retailer in the United States and internationally. The company provides jeans, apparel and accessories, and personal care products for women and men under the American Eagle brand; and intimates, apparel, activewear, and swim collections under the Aerie and OFFLINE by Aerie brands.