American Eagle Outfitters (NYSE:AEO) Price Target Cut to $27.00 by Analysts at UBS Group

American Eagle Outfitters (NYSE:AEO) had its price objective lowered by analysts at UBS Group from $31.00 to $27.00 in a report issued on Thursday, Benzinga reports. The brokerage presently has a “buy” rating on the apparel retailer’s stock. UBS Group’s target price suggests a potential upside of 83.80% from the stock’s current price.

A number of other research firms also recently weighed in on AEO. JPMorgan Chase & Co. increased their target price on shares of American Eagle Outfitters from $19.00 to $21.00 and gave the company a “neutral” rating in a research report on Tuesday, August 18th. Telsey Advisory Group lowered their target price on American Eagle Outfitters from $20.00 to $18.00 and set a “market perform” rating on the stock in a research note on Thursday. Morgan Stanley reiterated an “equal weight” rating and set a $18.00 price target on shares of American Eagle Outfitters in a research note on Monday, July 6th. Wall Street Zen upgraded American Eagle Outfitters from a “hold” rating to a “buy” rating in a research note on Saturday, September 5th. Finally, TD Cowen dropped their price objective on shares of American Eagle Outfitters from $19.00 to $18.00 and set a “hold” rating on the stock in a report on Monday, May 18th. Two analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $19.64.

American Eagle Outfitters Trading Down 13.0%

Shares of American Eagle Outfitters stock opened at $14.69 on Thursday. The company has a current ratio of 1.55, a quick ratio of 0.53 and a debt-to-equity ratio of 0.05. The stock has a fifty day simple moving average of $17.01 and a 200 day simple moving average of $17.63. American Eagle Outfitters has a 12-month low of $14.06 and a 12-month high of $28.46. The company has a market capitalization of $2.46 billion, a P/E ratio of 9.00, a price-to-earnings-growth ratio of 3.76 and a beta of 1.33.

American Eagle Outfitters (NYSE:AEO) last posted its earnings results on Wednesday, September 9th. The apparel retailer reported $0.79 EPS for the quarter, topping the consensus estimate of $0.22 by $0.57. The firm had revenue of $1.38 billion for the quarter, compared to analysts’ expectations of $1.37 billion. American Eagle Outfitters had a net margin of 5.01% and a return on equity of 20.95%. The company’s quarterly revenue was up 7.5% compared to the same quarter last year. During the same quarter last year, the firm earned $0.45 EPS. On average, sell-side analysts anticipate that American Eagle Outfitters will post 1.76 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Cary D. Mcmillan sold 2,892 shares of the firm’s stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $16.77, for a total value of $48,498.84. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director Noel Spiegel sold 2,892 shares of the firm’s stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $16.78, for a total transaction of $48,527.76. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 11,563 shares of company stock worth $196,599. Insiders own 8.95% of the company’s stock.

Institutional Trading of American Eagle Outfitters

Several institutional investors and hedge funds have recently made changes to their positions in AEO. Nykredit A S bought a new stake in shares of American Eagle Outfitters during the 2nd quarter worth $33,253,000. Parkside Financial Bank & Trust grew its position in American Eagle Outfitters by 772.7% in the second quarter. Parkside Financial Bank & Trust now owns 3,997 shares of the apparel retailer’s stock worth $69,000 after acquiring an additional 3,539 shares in the last quarter. Corient Private Wealth LP bought a new position in American Eagle Outfitters in the second quarter valued at $2,820,000. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in American Eagle Outfitters in the second quarter valued at $303,000. Finally, California State Teachers Retirement System raised its position in American Eagle Outfitters by 1,570.4% during the second quarter. California State Teachers Retirement System now owns 3,119,444 shares of the apparel retailer’s stock valued at $53,654,000 after purchasing an additional 2,932,699 shares in the last quarter. Hedge funds and other institutional investors own 97.33% of the company’s stock.

Key American Eagle Outfitters News

Here are the key news stories impacting American Eagle Outfitters this week:

• Positive Sentiment: Headline results exceeded expectations: AEO reported adjusted earnings of $0.79 per share versus the approximately $0.22 consensus estimate. Revenue rose 7.5% year over year to $1.38 billion, slightly ahead of forecasts. Operating income more than doubled, supported by revenue growth and improved profitability. American Eagle Outfitters beats quarterly revenue estimates
• Positive Sentiment: Aerie and OFFLINE continued to drive growth: Companywide comparable sales increased 6%, with strong demand for Aerie intimates, sleepwear and apparel helping offset softer performance at the flagship brand. Why did American Eagle’s Q2 operating income more than double?
• Neutral Sentiment: Full-year sales outlook maintained: Management retained its annual sales forecast, indicating that it still expects growth despite cautious consumer spending. However, the unchanged outlook did not provide a fresh catalyst for investors. American Eagle sticks to annual sales forecast amid cautious spending
• Negative Sentiment: Core American Eagle brand remains weak: Comparable sales at the namesake brand declined 1%, while management acknowledged that more work is needed to improve its performance. Inventory also increased year over year, and merchandise margins weakened at the core banner. American Eagle shares slide as flat margin outlook and weak core brand weigh
• Negative Sentiment: Profit quality and margins raised concerns: A substantial portion of the earnings and gross-margin improvement came from tariff refunds, which investors may view as nonrecurring. The company’s quarterly gross-margin forecast was essentially flat, weakening confidence that the earnings improvement is sustainable. American Eagle Outfitters Q2 profit and gross margin inflated by tariff refunds

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.