Aeropostale (NYSE:ARO) was downgraded by Imperial Capital from an “outperform” rating to an “in-line” rating in a research note issued on Friday, TheFlyOnTheWall.com reports. They currently have a $10.00 price objective on the stock, down from their previous price objective of $17.00. Imperial Capital’s price objective points to a potential upside of 14.16% from the stock’s previous close.
The analysts wrote, “While we had previously been patient in our expectations for a turnaround in the business, we are now increasingly concerned that improvements could be further delayed given the highly promotional environment for teen retail which could limit upside in the shares in the intermediate term. Management’s guidance for 3Q was well below our expectations and comp trends have deteriorated further in August with weak traffic trends leaving us increasingly uncertain about the timing of a potential turnaround. We continue to believe the company is better positioned from a fashion merchandise perspective and has the potential to improve its sales and margins longer term, however, the path ahead will likely prove challenging and would recommend taking a wait-and-see approach to the shares.”
Aeropostale (NYSE:ARO) traded up 2.40% during mid-day trading on Friday, hitting $8.9701. 2,285,597 shares of the company’s stock traded hands. Aeropostale has a 1-year low of $8.59 and a 1-year high of $17.10. The stock’s 50-day moving average is $13.75 and its 200-day moving average is $13.89. The company’s market cap is $703.9 million. Aeropostale also was the target of unusually large options trading activity on Friday. Stock investors acquired 13,913 put options on the stock. This represents an increase of approximately 320% compared to the average daily volume of 3,309 put options.
Aeropostale (NYSE:ARO) last released its earnings data on Thursday, August 22nd. The company reported ($0.34) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.24) by $0.10. The company had revenue of $454.00 million for the quarter, compared to the consensus estimate of $453.97 million. The company’s revenue for the quarter was down 6.4% on a year-over-year basis. On average, analysts predict that Aeropostale will post $0.14 earnings per share for the current fiscal year.
Other equities research analysts have also recently issued reports about the stock. Analysts at Barclays Capital set a $10.00 price target on shares of Aeropostale in a research note to investors on Friday. They now have an “equal weight” rating on the stock. Separately, analysts at Topeka Capital Markets downgraded shares of Aeropostale from a “buy” rating to a “hold” rating in a research note to investors on Friday. They now have a $12.00 price target on the stock, down previously from $18.00. Finally, analysts at Jefferies Group cut their price target on shares of Aeropostale from $20.00 to $15.00 in a research note to investors on Friday. They now have a “buy” rating on the stock.
Five research analysts have rated the stock with a sell rating, sixteen have issued a hold rating and seven have given a buy rating to the stock. The company has a consensus rating of “Hold” and an average target price of $12.15.
In other Aeropostale news, Director Karin Hirtler-Garvey sold 16,875 shares of the stock on the open market in a transaction that occured on Wednesday, August 14th. The stock was sold at an average price of $12.70, for a total value of $214,312.50. Following the completion of the sale, the director now directly owns 54,557 shares in the company. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.
Aeropostale, Inc, (NYSE:ARO) is a mall-based, specialty retailer of casual apparel and accessories, principally targeting 14 to 17 year-old young women and men through its Aeropostale stores and 4 to 12 year-old kids through its P.
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