American Eagle Outfitters Inc. (NYSE:AEO) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Tuesday.

According to Zacks, “American Eagle has been gaining from its constant efforts to enhance brands via innovations, make technological advancements as well as its commitment toward enriching consumer experience. These factors, along with continued strength noted in its American Eagle and aerie brands also boosted its second-quarter fiscal 2016 results, which marked the company’s seventh straight earnings beat. Further, management issued a decent third-quarter view, as it entered the fall season with great expectations. Also, global expansion plans and omni-channel growth are likely to enable the company to augment business. However, high dependence on external suppliers and macroeconomic headwinds may dampen results. The company’s attempt to grow globally also exposes it to currency woes and other global risks. The company's estimates have been stable lately ahead of the  third quarter results, while it has a recent record of positive earnings surprises.”

AEO has been the topic of a number of other research reports. Wunderlich upgraded American Eagle Outfitters from a “hold” rating to a “buy” rating and increased their target price for the company from $13.00 to $22.00 in a research report on Thursday, August 11th. FBR & Co upgraded American Eagle Outfitters from a “market perform” rating to an “outperform” rating and increased their target price for the company from $17.00 to $19.00 in a research report on Thursday, August 25th. B. Riley reiterated a “buy” rating and set a $22.00 target price on shares of American Eagle Outfitters in a research report on Thursday, August 18th. Telsey Advisory Group increased their target price on American Eagle Outfitters from $18.00 to $22.00 and gave the company a “market perform” rating in a research report on Monday, August 15th. Finally, Citigroup Inc. increased their target price on American Eagle Outfitters from $16.00 to $19.00 and gave the company a “neutral” rating in a research report on Thursday, August 18th. Two analysts have rated the stock with a sell rating, nine have assigned a hold rating and fifteen have issued a buy rating to the stock. The stock presently has a consensus rating of “Buy” and an average target price of $19.45.

Analyst Recommendations for American Eagle Outfitters (NYSE:AEO)

American Eagle Outfitters (NYSE:AEO) opened at 16.93 on Tuesday. The firm’s 50-day moving average is $17.30 and its 200-day moving average is $16.79. American Eagle Outfitters has a 52-week low of $12.78 and a 52-week high of $19.55. The company has a market cap of $3.08 billion, a PE ratio of 13.47 and a beta of 0.86.

American Eagle Outfitters (NYSE:AEO) last issued its quarterly earnings data on Wednesday, August 17th. The apparel retailer reported $0.23 EPS for the quarter, topping analysts’ consensus estimates of $0.21 by $0.02. The business had revenue of $823 million for the quarter, compared to analysts’ expectations of $818.10 million. American Eagle Outfitters had a net margin of 6.61% and a return on equity of 21.00%. The business’s revenue was up 3.2% on a year-over-year basis. During the same quarter last year, the company earned $0.17 EPS. On average, equities research analysts anticipate that American Eagle Outfitters will post $1.31 EPS for the current year.

The business also recently disclosed a quarterly dividend, which was paid on Friday, October 21st. Stockholders of record on Friday, October 7th were paid a $0.125 dividend. This represents a $0.50 annualized dividend and a dividend yield of 2.95%. The ex-dividend date was Wednesday, October 5th. American Eagle Outfitters’s payout ratio is presently 40.00%.

In other news, COO Michael R. Rempell sold 50,826 shares of American Eagle Outfitters stock in a transaction dated Friday, September 2nd. The stock was sold at an average price of $18.84, for a total value of $957,561.84. Following the completion of the transaction, the chief operating officer now owns 106,077 shares in the company, valued at approximately $1,998,490.68. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, COO Michael R. Rempell sold 83,141 shares of American Eagle Outfitters stock in a transaction dated Thursday, August 18th. The shares were sold at an average price of $18.68, for a total value of $1,553,073.88. Following the completion of the transaction, the chief operating officer now owns 196,868 shares of the company’s stock, valued at approximately $3,677,494.24. The disclosure for this sale can be found here. 5.80% of the stock is owned by insiders.

Institutional investors have recently made changes to their positions in the stock. BlackRock Fund Advisors boosted its stake in American Eagle Outfitters by 6.9% in the third quarter. BlackRock Fund Advisors now owns 8,838,929 shares of the apparel retailer’s stock valued at $157,863,000 after buying an additional 570,211 shares during the last quarter. LSV Asset Management boosted its stake in American Eagle Outfitters by 4.2% in the third quarter. LSV Asset Management now owns 7,611,465 shares of the apparel retailer’s stock valued at $135,940,000 after buying an additional 308,936 shares during the last quarter. BlackRock Institutional Trust Company N.A. boosted its stake in American Eagle Outfitters by 1.7% in the third quarter. BlackRock Institutional Trust Company N.A. now owns 5,258,918 shares of the apparel retailer’s stock valued at $93,924,000 after buying an additional 88,083 shares during the last quarter. Bank of New York Mellon Corp boosted its stake in American Eagle Outfitters by 8.8% in the third quarter. Bank of New York Mellon Corp now owns 4,859,979 shares of the apparel retailer’s stock valued at $86,800,000 after buying an additional 393,844 shares during the last quarter. Finally, Hamlin Capital Management LLC boosted its stake in American Eagle Outfitters by 13.8% in the second quarter. Hamlin Capital Management LLC now owns 4,601,788 shares of the apparel retailer’s stock valued at $73,306,000 after buying an additional 556,632 shares during the last quarter. Institutional investors and hedge funds own 96.31% of the company’s stock.

American Eagle Outfitters Company Profile

American Eagle Outfitters, Inc (AEO Inc) is a specialty retailer, operating over 1,000 retail stores and online at ae.com and aerie.com in the United States and internationally. The Company operates in the segment of American Eagle Outfitters Brand (AEO Brand) retail stores, Aerie by American Eagle Outfitters retail stores and AEO Direct.

5 Day Chart for NYSE:AEO

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