American Eagle Outfitters (NYSE:AEO) Shares Climb 4.3% – Still a Buy?

American Eagle Outfitters, Inc. (NYSE:AEO)’s share price shot up 4.3% on Monday. The company traded as high as $16.98 and last traded at $17.2880. 321,877 shares were traded during trading, a decline of 94% from the average daily volume of 5,540,155 shares. The stock had previously closed at $16.58.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on AEO shares. Bank of America restated an “underperform” rating and set a $16.00 price objective on shares of American Eagle Outfitters in a research report on Friday, August 14th. JPMorgan Chase & Co. increased their target price on American Eagle Outfitters from $19.00 to $21.00 and gave the stock a “neutral” rating in a research report on Tuesday, August 18th. Weiss Ratings reiterated a “hold (c)” rating on shares of American Eagle Outfitters in a research note on Thursday, August 27th. William Blair reissued a “buy” rating on shares of American Eagle Outfitters in a report on Wednesday, July 15th. Finally, BMO Capital Markets assumed coverage on shares of American Eagle Outfitters in a research note on Tuesday, September 8th. They set a “market perform” rating and a $18.00 target price for the company. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company. According to 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 Up 6.2%

The business’s 50 day moving average is $16.70 and its two-hundred day moving average is $17.03. The company has a quick ratio of 0.62, a current ratio of 1.59 and a debt-to-equity ratio of 0.03. The firm has a market capitalization of $2.95 billion, a P/E ratio of 8.97, a PEG ratio of 3.78 and a beta of 1.33.

American Eagle Outfitters (NYSE:AEO) last announced its earnings results on Wednesday, September 9th. The apparel retailer reported $0.79 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.22 by $0.57. The firm had revenue of $1.38 billion during the quarter, compared to analyst estimates of $1.37 billion. American Eagle Outfitters had a net margin of 5.91% and a return on equity of 23.63%. American Eagle Outfitters’s revenue was up 7.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.45 EPS. Analysts expect that American Eagle Outfitters, Inc. will post 2.24 EPS for the current year.

American Eagle Outfitters Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 28th. Stockholders of record on Friday, October 9th will be paid a $0.1250 dividend. This represents a $0.50 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date of this dividend is Friday, October 9th. American Eagle Outfitters’s dividend payout ratio is currently 25.51%.

Insider Activity

In other American Eagle Outfitters news, Director Cary McMillan sold 2,892 shares of the company’s stock in a transaction that occurred on Tuesday, July 7th. The stock was sold at an average price of $16.77, for a total value of $48,498.84. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Noel Spiegel sold 2,892 shares of the stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $16.78, for a total value of $48,527.76. The SEC filing for this sale provides additional information. Insiders sold 11,563 shares of company stock worth $196,599 over the last three months. Corporate insiders own 8.95% of the company’s stock.

Institutional Trading of American Eagle Outfitters

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Canada Pension Plan Investment Board acquired a new stake in American Eagle Outfitters in the 2nd quarter valued at about $7,518,000. Goldman Sachs Group Inc. raised its holdings in shares of American Eagle Outfitters by 12.8% in 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 in the last quarter. NFJ Investment Group LLC acquired a new stake in American Eagle Outfitters during the second quarter valued at approximately $10,962,000. Man Group plc bought a new stake in American Eagle Outfitters during the second quarter worth approximately $5,316,000. Finally, Broad Peak Investment Advisers Pte Ltd bought a new stake in American Eagle Outfitters during the first quarter worth approximately $2,973,000. Institutional investors own 97.33% of the company’s stock.

About American Eagle Outfitters

American Eagle Outfitters, Inc (NYSE:AEO) is a specialty retailer offering casual apparel, accessories and footwear for young women and men. Its product assortment includes jeans, tops, dresses, intimates, loungewear and activewear, with merchandise sold through company-operated stores and digital channels.

The company’s principal brands include American Eagle, which focuses on casual lifestyle clothing and denim, and Aerie, which offers intimates, activewear and loungewear. Its brand portfolio has also included OFFLINE by Aerie, a performance and wellness-oriented line, and Todd Snyder, a menswear brand known for elevated casual clothing and tailoring.

Founded in 1977, American Eagle Outfitters is headquartered in Pittsburgh, Pennsylvania.