Zacks Investment Research downgraded shares of American Eagle Outfitters (NYSE:AEO) from a buy rating to a hold rating in a research report report published on Wednesday.
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 a number of other research reports. Jefferies Group reaffirmed a buy rating and issued a $24.00 target price on shares of American Eagle Outfitters in a research report on Friday, February 23rd. ValuEngine raised shares of American Eagle Outfitters from a buy rating to a strong-buy rating in a research 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 target price for the company in a research report on Thursday, January 11th. B. Riley lifted their target price on shares of American Eagle Outfitters from $15.00 to $18.00 and gave the stock a buy rating in a research 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 research report on Thursday, November 9th. Two research analysts have rated the stock with a sell rating, eight have issued a hold rating, ten have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. The stock currently has a consensus rating of Hold and a consensus price target of $18.00.
American Eagle Outfitters (NYSE:AEO) last posted its earnings results on Thursday, March 8th. The apparel retailer reported $0.44 EPS for the quarter, hitting analysts’ consensus estimates of $0.44. American Eagle Outfitters had a net margin of 4.50% and a return on equity of 17.42%. The business had revenue of $1.23 billion during the quarter, compared to the consensus estimate of $1.21 billion. During the same quarter in the previous year, the firm posted $0.39 EPS. The firm’s revenue was up 12.0% on a year-over-year basis. equities analysts predict that American Eagle Outfitters will post 1.16 earnings per share for the current year.
The firm also recently disclosed a quarterly dividend, which will be paid on Friday, April 27th. Stockholders of record on Friday, April 13th will be given a dividend of $0.1375 per share. This is an increase from American Eagle Outfitters’s previous quarterly dividend of $0.13. The ex-dividend date of this dividend is Thursday, April 12th. This represents a $0.55 dividend on an annualized basis and a dividend yield of 2.81%. American Eagle Outfitters’s payout ratio is presently 54.95%.
Hedge funds have recently modified their holdings of the company. Chartwell Investment Partners LLC bought a new stake in shares of American Eagle Outfitters during the 3rd quarter valued at $3,995,000. Paradigm Capital Management Inc. NY lifted its stake in shares of American Eagle Outfitters by 3.2% during the 3rd quarter. Paradigm Capital Management Inc. NY now owns 236,300 shares of the apparel retailer’s stock valued at $3,379,000 after buying an additional 7,300 shares in the last quarter. Gateway Investment Advisers LLC lifted its stake in shares of American Eagle Outfitters by 3.3% during the 4th quarter. Gateway Investment Advisers LLC now owns 398,185 shares of the apparel retailer’s stock valued at $7,486,000 after buying an additional 12,559 shares in the last quarter. Senvest Management LLC purchased a new position in shares of American Eagle Outfitters during the 3rd quarter valued at $22,737,000. Finally, Ameriprise Financial Inc. lifted its stake in shares of American Eagle Outfitters by 205.6% during the 3rd quarter. Ameriprise Financial Inc. now owns 2,280,569 shares of the apparel retailer’s stock valued at $32,611,000 after buying an additional 1,534,344 shares in the last quarter. 84.81% of the stock is owned by hedge funds and other institutional investors.
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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.
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