American Eagle Outfitters (NYSE:AEO) Upgraded by Zacks Research to Strong-Buy Rating

American Eagle Outfitters (NYSE:AEO) was upgraded by Zacks Research from a “hold” rating to a “strong-buy” rating in a note issued to investors on Wednesday, Zacks reports.

A number of other research firms have also recently weighed in on AEO. Morgan Stanley lowered their price target on American Eagle Outfitters from $18.00 to $17.00 and set an “equal weight” rating for the company in a report on Thursday. Citigroup cut their price objective on American Eagle Outfitters from $24.00 to $18.00 and set a “neutral” rating for the company in a research report on Monday, June 1st. Wall Street Zen upgraded shares of American Eagle Outfitters from a “hold” rating to a “buy” rating in a report on Saturday, September 5th. UBS Group decreased their target price on shares of American Eagle Outfitters from $31.00 to $27.00 and set a “buy” rating on the stock in a research report on Thursday. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of American Eagle Outfitters in a research note on Thursday, August 27th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, American Eagle Outfitters presently has a consensus rating of “Hold” and a consensus price target of $19.36.

American Eagle Outfitters Trading Down 13.9%

AEO opened at $14.53 on Wednesday. The stock has a market capitalization of $2.44 billion, a PE ratio of 7.42, a P/E/G ratio of 3.69 and a beta of 1.33. American Eagle Outfitters has a one year low of $14.06 and a one year high of $28.46. The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.53 and a current ratio of 1.55. The business’s 50 day moving average price is $16.97 and its 200 day moving average price is $17.55.

American Eagle Outfitters (NYSE:AEO) last posted its earnings results on Wednesday, September 9th. The apparel retailer reported $0.79 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.22 by $0.57. The company had revenue of $1.38 billion during the quarter, compared to analysts’ expectations of $1.37 billion. American Eagle Outfitters had a return on equity of 24.02% and a net margin of 5.91%.The firm’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 earnings per share. As a group, equities research analysts expect that American Eagle Outfitters will post 1.76 EPS for the current year.

Insiders Place Their Bets

In other news, Director Noel Spiegel sold 2,892 shares of American Eagle Outfitters stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $16.78, for a total value of $48,527.76. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Cary McMillan sold 2,892 shares of the business’s 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 disclosure for this sale is available in the SEC filing. Insiders have sold 11,563 shares of company stock worth $196,599 over the last ninety days. Corporate insiders own 8.95% of the company’s stock.

Hedge Funds Weigh In On American Eagle Outfitters

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Canada Pension Plan Investment Board purchased a new stake in shares of American Eagle Outfitters in the 2nd quarter valued at approximately $7,518,000. Goldman Sachs Group Inc. lifted its position in shares of American Eagle Outfitters by 12.8% during the 4th quarter. Goldman Sachs Group Inc. now owns 6,000,419 shares of the apparel retailer’s stock worth $158,231,000 after purchasing an additional 680,332 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew its stake in shares of American Eagle Outfitters by 151,993.0% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 65,400 shares of the apparel retailer’s stock worth $1,725,000 after purchasing an additional 65,357 shares in the last quarter. NFJ Investment Group LLC acquired a new position in shares of American Eagle Outfitters during the 2nd quarter worth about $10,962,000. Finally, Broad Peak Investment Advisers Pte Ltd acquired a new position in American Eagle Outfitters in the first quarter valued at approximately $2,973,000. 97.33% of the stock is currently owned by hedge funds and other institutional investors.

American Eagle Outfitters News Roundup

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

• Positive Sentiment: Second-quarter revenue increased 8% year over year to approximately $1.38 billion, narrowly exceeding estimates. Total comparable sales rose 6%, supported by Aerie and OFFLINE, while earnings of $0.79 per share significantly surpassed the roughly $0.22 consensus estimate. American Eagle Outfitters beats quarterly revenue estimates
• Positive Sentiment: Management cited strength in Aerie intimates, sleepwear and apparel, and issued a stronger fiscal 2026 operating-income outlook that incorporates tariff-related benefits. The company’s low leverage and ongoing brand improvement provide additional financial support. American Eagle Q2 Earnings Beat on Tariff Refunds, Aerie Strength
• Neutral Sentiment: Analysts reduced price targets following the report: Morgan Stanley lowered its target to $17 and Telsey Advisory Group to $18, while UBS cut its target to $27 but retained a Buy rating. These targets remain above the recent trading level, but the revisions signal reduced confidence in near-term execution.
• Negative Sentiment: The headline profit beat was substantially helped by an estimated $161 million in tariff refunds, raising concerns about earnings durability. Without that benefit, underlying profitability and merchandise margins would have appeared less robust. American Eagle shares slide as flat margin outlook, weak core brand weigh
• Negative Sentiment: American Eagle’s core-brand comparable sales fell 1%, and management acknowledged that more work is needed on the banner. Aerie’s sales growth also slowed, while the company maintained its annual same-store-sales forecast and projected flat third-quarter gross margins. Investors interpreted the outlook as evidence that cautious consumers and brand pressure remain unresolved. American Eagle Stock Slumps on Signs of Weakness at Namesake Brand

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.