American Eagle Outfitters (NYSE:AEO) Earns Underperform Rating from Bank of America

Bank of America restated their underperform rating on shares of American Eagle Outfitters (NYSE:AEO) in a research note published on Monday morning, Marketbeat Ratings reports. The firm currently has a $10.00 target price on the apparel retailer’s stock, down from their previous target price of $11.00.

Several other equities analysts have also recently weighed in on AEO. Wall Street Zen cut shares of American Eagle Outfitters from a “hold” rating to a “sell” rating in a research note on Saturday, June 7th. Cfra Research cut shares of American Eagle Outfitters from a “moderate buy” rating to a “hold” rating in a research note on Friday, June 6th. Morgan Stanley set a $10.00 price objective on shares of American Eagle Outfitters and gave the stock an “equal weight” rating in a research note on Monday, June 2nd. JPMorgan Chase & Co. reiterated an “underweight” rating and issued a $9.00 price objective on shares of American Eagle Outfitters in a research note on Monday, July 28th. Finally, Barclays decreased their target price on shares of American Eagle Outfitters from $10.00 to $9.00 and set an “underweight” rating on the stock in a research note on Monday, May 12th. One research analyst has rated the stock with a Buy rating, nine have given a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Reduce” and an average price target of $14.40.

American Eagle Outfitters Price Performance

Shares of NYSE:AEO opened at $13.22 on Monday. The firm’s 50 day moving average price is $11.15 and its 200-day moving average price is $11.44. American Eagle Outfitters has a twelve month low of $9.27 and a twelve month high of $22.63. The company has a quick ratio of 0.56, a current ratio of 1.38 and a debt-to-equity ratio of 0.07. The stock has a market capitalization of $2.29 billion, a PE ratio of 13.49 and a beta of 1.51.

American Eagle Outfitters (NYSE:AEO) last issued its quarterly earnings data on Thursday, May 29th. The apparel retailer reported ($0.29) earnings per share for the quarter, missing the consensus estimate of ($0.25) by ($0.04). American Eagle Outfitters had a return on equity of 13.34% and a net margin of 3.73%.The business had revenue of $1.09 billion during the quarter, compared to the consensus estimate of $1.08 billion. During the same quarter last year, the company earned $0.34 EPS. American Eagle Outfitters’s revenue for the quarter was down 4.7% on a year-over-year basis. Equities research analysts expect that American Eagle Outfitters will post 1.7 EPS for the current year.

American Eagle Outfitters Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, July 25th. Shareholders of record on Friday, July 11th were paid a dividend of $0.125 per share. The ex-dividend date was Friday, July 11th. This represents a $0.50 dividend on an annualized basis and a yield of 3.8%. American Eagle Outfitters’s dividend payout ratio (DPR) is presently 51.02%.

Institutional Investors Weigh In On American Eagle Outfitters

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Dimensional Fund Advisors LP raised its stake in American Eagle Outfitters by 3.4% during the 1st quarter. Dimensional Fund Advisors LP now owns 10,570,088 shares of the apparel retailer’s stock worth $122,820,000 after acquiring an additional 346,135 shares during the period. Cooke & Bieler LP grew its holdings in American Eagle Outfitters by 29.9% during the 1st quarter. Cooke & Bieler LP now owns 7,791,193 shares of the apparel retailer’s stock valued at $90,534,000 after buying an additional 1,794,203 shares in the last quarter. American Century Companies Inc. grew its holdings in American Eagle Outfitters by 5.2% during the 2nd quarter. American Century Companies Inc. now owns 6,329,202 shares of the apparel retailer’s stock valued at $60,887,000 after buying an additional 312,168 shares in the last quarter. Victory Capital Management Inc. grew its holdings in American Eagle Outfitters by 22.2% during the 1st quarter. Victory Capital Management Inc. now owns 5,305,889 shares of the apparel retailer’s stock valued at $61,654,000 after buying an additional 962,730 shares in the last quarter. Finally, Millennium Management LLC grew its holdings in American Eagle Outfitters by 37.7% during the 1st quarter. Millennium Management LLC now owns 3,455,961 shares of the apparel retailer’s stock valued at $40,158,000 after buying an additional 946,904 shares in the last quarter. Institutional investors own 97.33% of the company’s stock.

About American Eagle Outfitters

American Eagle Outfitters, Inc operates as a multi-brand specialty retailer in the United States and internationally. The company provides jeans, apparel and accessories, and personal care products for women and men under the American Eagle brand; and intimates, apparel, activewear, and swim collections under the Aerie and OFFLINE by Aerie brands.