American Eagle Outfitters (NYSE:AEO) Shares Gap Up – Should You Buy?

Shares of American Eagle Outfitters, Inc. (NYSE:AEO) gapped up before the market opened on Wednesday . The stock had previously closed at $16.73, but opened at $17.23. American Eagle Outfitters shares last traded at $17.5840, with a volume of 748,865 shares trading hands.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the company. The Goldman Sachs Group set a $22.00 target price on American Eagle Outfitters in a report on Monday, June 1st. Morgan Stanley reissued an “equal weight” rating and issued a $18.00 price target on shares of American Eagle Outfitters in a research report on Monday, July 6th. Bank of America restated an “underperform” rating and set a $16.00 price objective on shares of American Eagle Outfitters in a research note on Friday, August 14th. Weiss Ratings downgraded American Eagle Outfitters from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday, June 1st. Finally, Barclays cut their target price on American Eagle Outfitters from $19.00 to $17.00 and set an “equal weight” rating on the stock in a research note on Friday, May 29th. Two research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $20.09.

American Eagle Outfitters Stock Performance

The firm has a fifty day moving average of $17.16 and a 200 day moving average of $18.20. The company has a debt-to-equity ratio of 0.05, a current ratio of 1.55 and a quick ratio of 0.53. The stock has a market capitalization of $2.93 billion, a price-to-earnings ratio of 10.78, a price-to-earnings-growth ratio of 3.68 and a beta of 1.32.

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

American Eagle Outfitters Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, July 24th. Stockholders of record on Friday, July 10th were paid a $0.125 dividend. The ex-dividend date of this dividend was Friday, July 10th. This represents a $0.50 dividend on an annualized basis and a dividend yield of 2.9%. American Eagle Outfitters’s payout ratio is currently 30.86%.

Insider Buying and Selling at American Eagle Outfitters

In other news, Director Noel Joseph Spiegel sold 2,892 shares of the firm’s stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $16.78, for a total value of $48,527.76. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Cary D. Mcmillan 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 $16.77, for a total value of $48,498.84. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 11,563 shares of company stock worth $196,599. Corporate insiders own 8.95% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the company. Plato Investment Management Ltd purchased a new stake in American Eagle Outfitters during the second quarter worth approximately $25,000. Kemnay Advisory Services Inc. acquired a new stake in shares of American Eagle Outfitters in the fourth quarter valued at approximately $31,000. Aster Capital Management DIFC Ltd purchased a new position in shares of American Eagle Outfitters during the fourth quarter worth approximately $32,000. Raymond James Financial Inc. purchased a new position in shares of American Eagle Outfitters during the second quarter worth approximately $35,000. Finally, Allworth Financial LP acquired a new position in shares of American Eagle Outfitters in the 2nd quarter valued at $36,000. 97.33% of the stock is currently 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.