American Eagle Outfitters (NYSE:AEO) Stock Price Up 7% – Here’s Why

American Eagle Outfitters, Inc. (NYSE:AEO)’s stock price was up 7% on Wednesday . The company traded as high as $17.19 and last traded at $17.2770. Approximately 1,353,457 shares were traded during trading, a decline of 75% from the average session volume of 5,498,572 shares. The stock had previously closed at $16.15.

Wall Street Analyst Weigh In

Several research analysts recently commented on the stock. Weiss Ratings downgraded shares of American Eagle Outfitters from a “hold (c+)” rating to a “hold (c)” rating in a research note on Monday, June 1st. UBS Group reissued a “buy” rating on shares of American Eagle Outfitters in a report on Wednesday. Barclays decreased their price objective on shares of American Eagle Outfitters from $19.00 to $17.00 and set an “equal weight” rating on the stock in a research report on Friday, May 29th. Morgan Stanley reaffirmed an “equal weight” rating and set a $18.00 price objective on shares of American Eagle Outfitters in a research note on Monday, July 6th. Finally, TD Cowen dropped their target price on shares of American Eagle Outfitters from $19.00 to $18.00 and set a “hold” rating for the company in a report on Monday, May 18th. Two analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $19.91.

American Eagle Outfitters Trading Up 7.9%

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’s 50-day simple moving average is $16.84 and its 200-day simple moving average is $19.98. The firm has a market capitalization of $2.92 billion, a PE ratio of 10.74, a P/E/G ratio of 3.50 and a beta of 1.31.

American Eagle Outfitters (NYSE:AEO) last posted its earnings results on Thursday, May 28th. The apparel retailer reported $0.14 EPS for the quarter, topping the consensus estimate of $0.11 by $0.03. The firm had revenue of $1.20 billion during the quarter, compared to analysts’ expectations of $1.18 billion. American Eagle Outfitters had a net margin of 5.01% and a return on equity of 20.95%. The company’s quarterly revenue was up 9.7% compared to the same quarter last year. During the same period last year, the company posted ($0.29) EPS. As a group, sell-side analysts expect that American Eagle Outfitters, Inc. will post 1.76 EPS for the current fiscal year.

American Eagle Outfitters Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, July 24th. Shareholders of record on Friday, July 10th will be issued a $0.125 dividend. The ex-dividend date is Friday, July 10th. This represents a $0.50 annualized dividend and a yield of 2.9%. American Eagle Outfitters’s dividend payout ratio (DPR) is 30.86%.

Insider Activity at American Eagle Outfitters

In other American Eagle Outfitters news, Director Noel Joseph Spiegel sold 2,892 shares of American Eagle Outfitters stock in a transaction that occurred on Tuesday, July 7th. The stock was sold at an average price of $16.78, for a total transaction of $48,527.76. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Cary D. Mcmillan sold 2,892 shares of the company’s stock in a transaction that occurred on Tuesday, July 7th. The stock was sold at an average price of $16.77, for a total value of $48,498.84. The disclosure for this sale is available in the SEC filing. Insiders own 8.95% of the company’s stock.

Institutional Investors Weigh In On American Eagle Outfitters

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its holdings in American Eagle Outfitters by 1.4% in the fourth quarter. Vanguard Group Inc. now owns 18,398,401 shares of the apparel retailer’s stock worth $485,166,000 after purchasing an additional 249,158 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in American Eagle Outfitters by 5.8% during 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 buying an additional 509,326 shares during the period. State Street Corp boosted its holdings in shares of American Eagle Outfitters by 0.6% during the 4th quarter. State Street Corp now owns 6,606,362 shares of the apparel retailer’s stock valued at $174,210,000 after buying an additional 39,334 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in shares of American Eagle Outfitters by 162.9% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 6,336,392 shares of the apparel retailer’s stock valued at $105,818,000 after buying an additional 3,926,230 shares in the last quarter. Finally, Goldman Sachs Group Inc. grew its position in shares of American Eagle Outfitters by 12.8% in the 4th quarter. Goldman Sachs Group Inc. now owns 6,000,419 shares of the apparel retailer’s stock worth $158,231,000 after buying an additional 680,332 shares during the period. 97.33% of the stock is owned by hedge funds and other institutional investors.

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.