American Eagle Outfitters (AEO) Downgraded by Zacks Investment Research
Zacks Investment Research cut shares of American Eagle Outfitters (NYSE:AEO) from a buy rating to a hold rating in a research note released on Wednesday morning.
According to Zacks, “American Eagle outperformed the industry in three months driven by robust comps trend, which continued in the holiday period. After posting 11 straight quarters of positive comps in third-quarter fiscal 2017, comps improved 8% for the fourth quarter to date period which mainly comprises the holiday season. Comps for the period gained from solid online and in-store traffic as customers responded positively to the company’s merchandising offerings. Also, record sales and strong momentum at its AE and Aerie brands aided comps growth. Following the trend so far, the company reiterated its previously issued fourth-quarter earnings guidance. However, the company's margins continue to be strained. While the company projected sequential improvement in gross margin for the fourth quarter, it remains to be seen if margins will improve compared with the prior-year quarter as higher promotions and shipping costs will remain deterrents.”
AEO has been the subject of several other research reports. Jefferies Group reaffirmed a buy rating and set a $24.00 price objective on shares of American Eagle Outfitters in a report on Friday, February 23rd. ValuEngine raised shares of American Eagle Outfitters from a buy rating to a strong-buy rating in a report on Friday, March 2nd. Buckingham Research raised shares of American Eagle Outfitters from a neutral rating to a buy rating and set a $22.00 price objective for the company in a report on Thursday, January 11th. B. Riley raised their price objective on shares of American Eagle Outfitters from $15.00 to $18.00 and gave the stock a buy rating in a report on Thursday, December 7th. Finally, Wolfe Research raised shares of American Eagle Outfitters from an underperform rating to a market perform rating in a report on Thursday, November 9th. Two analysts have rated the stock with a sell rating, eight have assigned a hold rating, ten have given a buy rating and one has given a strong buy rating to the company’s stock. American Eagle Outfitters presently has an average rating of Hold and a consensus price target of $18.00.
American Eagle Outfitters (NYSE:AEO) last posted its quarterly earnings data on Thursday, March 8th. The apparel retailer reported $0.44 earnings per share for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.44. The company had revenue of $1.23 billion during the quarter, compared to analyst estimates of $1.21 billion. American Eagle Outfitters had a net margin of 5.38% and a return on equity of 17.91%. The company’s revenue was up 12.0% on a year-over-year basis. During the same quarter last year, the business posted $0.39 earnings per share. equities research analysts predict that American Eagle Outfitters will post 1.44 earnings per share for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Friday, April 27th. Stockholders of record on Friday, April 13th will be paid a dividend of $0.1375 per share. This is a boost from American Eagle Outfitters’s previous quarterly dividend of $0.13. This represents a $0.55 annualized dividend and a dividend yield of 2.81%. The ex-dividend date of this dividend is Thursday, April 12th. American Eagle Outfitters’s dividend payout ratio is 43.86%.
Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Chartwell Investment Partners LLC bought a new position in American Eagle Outfitters in the third quarter valued at approximately $3,995,000. Paradigm Capital Management Inc. NY boosted its stake in American Eagle Outfitters by 3.2% in the third quarter. Paradigm Capital Management Inc. NY now owns 236,300 shares of the apparel retailer’s stock valued at $3,379,000 after acquiring an additional 7,300 shares during the last quarter. Gateway Investment Advisers LLC boosted its stake in American Eagle Outfitters by 3.3% in the fourth quarter. Gateway Investment Advisers LLC now owns 398,185 shares of the apparel retailer’s stock valued at $7,486,000 after acquiring an additional 12,559 shares during the last quarter. Senvest Management LLC bought a new position in American Eagle Outfitters in the third quarter valued at approximately $22,737,000. Finally, Ameriprise Financial Inc. boosted its stake in American Eagle Outfitters by 205.6% in the third quarter. Ameriprise Financial Inc. now owns 2,280,569 shares of the apparel retailer’s stock valued at $32,611,000 after acquiring an additional 1,534,344 shares during the last quarter. 84.81% of the stock is currently owned by institutional investors and hedge funds.
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American Eagle Outfitters Company Profile
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.
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