Zacks Investment Research upgraded shares of American Eagle Outfitters, Inc. (NYSE:AEO) from a sell rating to a hold rating in a report published on Friday morning.

According to Zacks, “American Eagle has outperformed the industry in the past three months driven by positive sentiment for second-quarter fiscal 2017, since reporting a dismal first-quarter. The company lived up to expectations with both the top and bottom line beating estimates in the second quarter. While the quarter marked second straight quarter of sales beat, earnings topped estimates after a miss in the last quarter. The company also posted 10th straight quarter of positive comps on the back of strong online sales at both brands driven by efficient use of omni-channel capabilities to enhance customer experience. Moreover, the company is optimistic about the second half of fiscal 2017, especially the fall season. It is also on track to launch the revamped loyalty program targeting to convert current customers and attract new ones. However, margins remained strained owing to increased promotions. The company also expects these trends to continue and hurt results.”

Several other analysts have also recently issued reports on AEO. UBS AG reiterated a neutral rating and set a $11.00 target price (down previously from $17.00) on shares of American Eagle Outfitters in a research report on Friday, May 19th. B. Riley reiterated a neutral rating and set a $12.50 target price on shares of American Eagle Outfitters in a research report on Thursday, May 18th. Buckingham Research reiterated a neutral rating on shares of American Eagle Outfitters in a research report on Thursday. BMO Capital Markets set a $15.00 target price on American Eagle Outfitters and gave the stock a buy rating in a research report on Tuesday, August 8th. Finally, J P Morgan Chase & Co reiterated a neutral rating and set a $13.00 target price (up previously from $12.00) on shares of American Eagle Outfitters in a research report on Thursday. Four analysts have rated the stock with a sell rating, ten have given a hold rating and eleven have assigned a buy rating to the company. American Eagle Outfitters presently has an average rating of Hold and a consensus price target of $14.75.

American Eagle Outfitters (NYSE AEO) traded up 4.34% during mid-day trading on Friday, reaching $12.73. The company’s stock had a trading volume of 7,023,222 shares. The firm has a market cap of $2.26 billion, a PE ratio of 13.07 and a beta of 1.09. The stock’s 50 day moving average is $11.65 and its 200 day moving average is $12.89. American Eagle Outfitters has a one year low of $10.23 and a one year high of $19.02.

American Eagle Outfitters (NYSE:AEO) last released its earnings results on Wednesday, August 23rd. The apparel retailer reported $0.19 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.16 by $0.03. American Eagle Outfitters had a return on equity of 18.25% and a net margin of 4.85%. The firm had revenue of $845 million during the quarter, compared to analysts’ expectations of $823.84 million. During the same quarter last year, the business posted $0.23 earnings per share. The firm’s revenue was up 2.7% on a year-over-year basis. On average, analysts anticipate that American Eagle Outfitters will post $1.13 EPS for the current year.

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Several large investors have recently modified their holdings of AEO. BlackRock Inc. raised its stake in shares of American Eagle Outfitters by 8,781.1% in the first quarter. BlackRock Inc. now owns 17,773,025 shares of the apparel retailer’s stock worth $249,355,000 after buying an additional 17,572,904 shares in the last quarter. RidgeWorth Capital Management LLC acquired a new stake in shares of American Eagle Outfitters during the first quarter worth about $29,610,000. Dimensional Fund Advisors LP raised its stake in shares of American Eagle Outfitters by 30.5% in the second quarter. Dimensional Fund Advisors LP now owns 7,220,656 shares of the apparel retailer’s stock worth $87,008,000 after buying an additional 1,687,520 shares in the last quarter. Hamlin Capital Management LLC raised its stake in shares of American Eagle Outfitters by 34.0% in the second quarter. Hamlin Capital Management LLC now owns 5,737,478 shares of the apparel retailer’s stock worth $69,137,000 after buying an additional 1,456,748 shares in the last quarter. Finally, Schroder Investment Management Group acquired a new stake in shares of American Eagle Outfitters during the first quarter worth about $16,019,000. 89.03% of the stock is owned by hedge funds and other institutional investors.

About American Eagle Outfitters

American Eagle Outfitters, Inc (AEO Inc) is a multi-brand specialty retailer. The Company offers a range of apparel and accessories for men and women under the American Eagle Outfitters Brand (AEO Brand), and intimates, apparel and personal care products for women under the Aerie brand. AEO Inc operates stores in the United States, Canada, Mexico, Hong Kong, China and the United Kingdom.

Analyst Recommendations for American Eagle Outfitters (NYSE:AEO)

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