Zacks Investment Research downgraded shares of American Eagle Outfitters Inc. (NYSE:AEO) from a hold rating to a sell rating in a research note released on Tuesday morning.

According to Zacks, “Though American Eagle's global expansion plans and omni-channel growth are likely to enable it to augment business, its high dependence on external suppliers and macroeconomic headwinds may dampen results. Further, the company’s attempt to grow globally also exposes it to adverse currency movements and other international risks, which pose concerns. The company's estimates have been stable lately ahead of the  third quarter results, while it has a recent record of positive earnings surprises. Also, the company has been outperforming the Zacks Categorized Retail-Apparel/Shoe market on a year-to-date basis. 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. Further, management issued a decent third-quarter view, as it entered the fall season with great expectations.”

AEO has been the topic of a number of other research reports. BMO Capital Markets upgraded American Eagle Outfitters from a market perform rating to an outperform rating and lifted their target price for the company from $18.00 to $21.00 in a research report on Monday, October 10th. They noted that the move was a valuation call. BlueFin Research reiterated an outperform rating and issued a $22.00 price objective on shares of American Eagle Outfitters in a report on Wednesday, September 28th. Jefferies Group reiterated a buy rating on shares of American Eagle Outfitters in a report on Monday, August 1st. FBR & Co upgraded American Eagle Outfitters from a market perform rating to an outperform rating and boosted their price objective for the company from $17.00 to $19.00 in a report on Thursday, August 25th. Finally, Deutsche Bank AG upgraded American Eagle Outfitters from a hold rating to a buy rating and boosted their price objective for the company from $17.00 to $22.00 in a report on Monday, August 15th. Three analysts have rated the stock with a sell rating, nine have assigned a hold rating and thirteen have issued a buy rating to the company’s stock. The company has a consensus rating of Hold and a consensus target price of $19.63.

American Eagle Outfitters (NYSE:AEO) opened at 18.91 on Tuesday. American Eagle Outfitters has a 52-week low of $12.78 and a 52-week high of $19.55. The stock’s 50 day moving average price is $17.46 and its 200-day moving average price is $17.15. The company has a market cap of $3.44 billion, a P/E ratio of 15.04 and a beta of 0.86.

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In other American Eagle Outfitters news, COO Michael R. Rempell sold 50,826 shares of the firm’s 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 transaction, the chief operating officer now directly owns 106,077 shares of the company’s stock, valued at $1,998,490.68. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 5.80% of the stock is owned by company insiders.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AEO. Wellington Management Group LLP raised its position in American Eagle Outfitters by 56.3% in the first quarter. Wellington Management Group LLP now owns 499,148 shares of the apparel retailer’s stock valued at $8,321,000 after buying an additional 179,810 shares during the period. BNP Paribas Arbitrage SA raised its position in American Eagle Outfitters by 389.0% in the second quarter. BNP Paribas Arbitrage SA now owns 185,162 shares of the apparel retailer’s stock valued at $2,950,000 after buying an additional 147,296 shares during the period. NN Investment Partners Holdings N.V. raised its position in American Eagle Outfitters by 17.5% in the second quarter. NN Investment Partners Holdings N.V. now owns 427,100 shares of the apparel retailer’s stock valued at $6,804,000 after buying an additional 63,500 shares during the period. Dalton Greiner Hartman Maher & Co. raised its position in American Eagle Outfitters by 1,169.5% in the second quarter. Dalton Greiner Hartman Maher & Co. now owns 892,529 shares of the apparel retailer’s stock valued at $14,218,000 after buying an additional 822,222 shares during the period. Finally, Deroy & Devereaux Private Investment Counsel Inc. raised its position in American Eagle Outfitters by 0.6% in the second quarter. Deroy & Devereaux Private Investment Counsel Inc. now owns 767,128 shares of the apparel retailer’s stock valued at $12,220,000 after buying an additional 4,553 shares during the period. 99.36% of the stock is currently owned by institutional investors.

About American Eagle Outfitters

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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