American Eagle Outfitters (NYSE:AEO) Shares Down 5% – Should You Sell?

Shares of American Eagle Outfitters, Inc. (NYSE:AEO) were down 5% on Wednesday . The company traded as low as $16.47 and last traded at $16.49. 1,769,935 shares changed hands during mid-day trading, a decline of 67% from the average daily volume of 5,318,652 shares. The stock had previously closed at $17.36.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the company. Weiss Ratings downgraded American Eagle Outfitters from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday, June 1st. Bank of America dropped their target price on shares of American Eagle Outfitters from $20.00 to $16.00 and set an “underperform” rating for the company in a report on Friday, May 29th. Morgan Stanley reaffirmed an “equal weight” rating and set a $18.00 price target on shares of American Eagle Outfitters in a report on Monday, July 6th. TD Cowen dropped their price objective on shares of American Eagle Outfitters from $19.00 to $18.00 and set a “hold” rating for the company in a research note on Monday, May 18th. Finally, William Blair restated a “buy” rating on shares of American Eagle Outfitters in a research report on Wednesday, July 15th. Two investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $19.91.

American Eagle Outfitters Stock Up 0.7%

The stock has a 50 day moving average price of $17.37 and a 200 day moving average price of $18.61. The company has a quick ratio of 0.53, a current ratio of 1.55 and a debt-to-equity ratio of 0.05. The stock has a market capitalization of $2.74 billion, a price-to-earnings ratio of 10.09, a price-to-earnings-growth ratio of 3.55 and a beta of 1.32.

American Eagle Outfitters (NYSE:AEO) last released its quarterly earnings results on Thursday, May 28th. The apparel retailer reported $0.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.11 by $0.03. The firm had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.18 billion. American Eagle Outfitters had a net margin of 5.01% and a return on equity of 20.95%. The company’s revenue for the quarter was up 9.7% on a year-over-year basis. During the same quarter last year, the firm earned ($0.29) earnings per share. As a group, analysts forecast that American Eagle Outfitters, Inc. will post 1.76 EPS for the current year.

American Eagle Outfitters Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 24th. Stockholders of record on Friday, July 10th were paid a $0.125 dividend. This represents a $0.50 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date of this dividend was Friday, July 10th. American Eagle Outfitters’s payout ratio is currently 30.86%.

Insider Activity at American Eagle Outfitters

In other news, Director Cary D. Mcmillan sold 2,892 shares of American Eagle Outfitters stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $16.77, for a total value of $48,498.84. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director David M. Sable sold 5,779 shares of American Eagle Outfitters stock in a transaction on Friday, July 17th. The shares were sold at an average price of $17.23, for a total transaction of $99,572.17. Following the completion of the sale, the director directly owned 53,481 shares of the company’s stock, valued at approximately $921,477.63. This trade represents a 9.75% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 11,563 shares of company stock worth $196,599 in the last 90 days. Corporate insiders own 8.95% of the company’s stock.

Institutional Trading of American Eagle Outfitters

Large investors have recently made changes to their positions in the company. Quadrant Capital Group LLC raised its stake in American Eagle Outfitters by 31.8% during the 4th quarter. Quadrant Capital Group LLC now owns 1,852 shares of the apparel retailer’s stock worth $49,000 after buying an additional 447 shares during the period. Los Angeles Capital Management LLC increased its holdings in shares of American Eagle Outfitters by 2.1% during the fourth quarter. Los Angeles Capital Management LLC now owns 25,363 shares of the apparel retailer’s stock valued at $669,000 after acquiring an additional 510 shares in the last quarter. EverSource Wealth Advisors LLC increased its holdings in shares of American Eagle Outfitters by 31.9% during the first quarter. EverSource Wealth Advisors LLC now owns 2,870 shares of the apparel retailer’s stock valued at $48,000 after acquiring an additional 694 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank raised its position in shares of American Eagle Outfitters by 1.3% during the third quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 57,817 shares of the apparel retailer’s stock worth $989,000 after purchasing an additional 731 shares during the period. Finally, Commonwealth Equity Services LLC lifted its holdings in shares of American Eagle Outfitters by 3.0% in the 4th quarter. Commonwealth Equity Services LLC now owns 24,847 shares of the apparel retailer’s stock worth $655,000 after purchasing an additional 734 shares in the last quarter. 97.33% of the stock is currently owned by institutional investors and hedge funds.

About American Eagle Outfitters

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.