American Eagle Outfitters (NYSE:AEO) Hits New 12-Month High – Should You Buy?

American Eagle Outfitters, Inc. (NYSE:AEO) hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as $28.32 and last traded at $28.2240, with a volume of 1814492 shares changing hands. The stock had previously closed at $26.85.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on AEO shares. UBS Group lifted their price objective on shares of American Eagle Outfitters from $31.00 to $35.00 and gave the stock a “buy” rating in a report on Thursday. Morgan Stanley set a $23.00 target price on shares of American Eagle Outfitters in a research note on Wednesday, December 3rd. Barclays increased their price objective on American Eagle Outfitters from $20.00 to $24.00 and gave the company an “underweight” rating in a report on Tuesday. The Goldman Sachs Group assumed coverage on shares of American Eagle Outfitters in a research report on Thursday, December 11th. They set a “neutral” rating and a $25.00 target price for the company. Finally, Zacks Research upgraded shares of American Eagle Outfitters from a “hold” rating to a “strong-buy” rating in a research note on Friday, October 24th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, eleven have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, American Eagle Outfitters has an average rating of “Hold” and a consensus target price of $22.18.

American Eagle Outfitters Stock Performance

The company has a 50 day simple moving average of $22.48 and a 200-day simple moving average of $16.89. The stock has a market cap of $4.70 billion, a P/E ratio of 23.90 and a beta of 1.39. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.63 and a quick ratio of 0.59.

American Eagle Outfitters (NYSE:AEO) last issued its earnings results on Tuesday, December 2nd. The apparel retailer reported $0.53 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.43 by $0.10. American Eagle Outfitters had a return on equity of 13.82% and a net margin of 3.90%.The business had revenue of $1.36 billion during the quarter, compared to analyst estimates of $1.32 billion. During the same quarter in the prior year, the firm earned $0.48 earnings per share. American Eagle Outfitters’s revenue for the quarter was up 2.9% on a year-over-year basis. On average, equities analysts expect that American Eagle Outfitters, Inc. will post 1.7 earnings per share for the current fiscal year.

American Eagle Outfitters Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, January 23rd. Shareholders of record on Friday, January 9th will be given a $0.125 dividend. The ex-dividend date is Friday, January 9th. This represents a $0.50 annualized dividend and a yield of 1.8%. American Eagle Outfitters’s payout ratio is presently 43.10%.

Insider Activity

In related news, insider Jennifer M. Foyle sold 243,047 shares of American Eagle Outfitters stock in a transaction on Friday, December 5th. The shares were sold at an average price of $24.30, for a total value of $5,906,042.10. Following the transaction, the insider directly owned 191,751 shares of the company’s stock, valued at $4,659,549.30. The trade was a 55.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 8.70% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in AEO. Marshall Wace LLP increased its stake in shares of American Eagle Outfitters by 920.6% in the 3rd quarter. Marshall Wace LLP now owns 5,497,720 shares of the apparel retailer’s stock worth $94,066,000 after acquiring an additional 4,959,039 shares in the last quarter. Segall Bryant & Hamill LLC bought a new stake in American Eagle Outfitters during the 3rd quarter valued at about $23,395,000. Millennium Management LLC lifted its stake in shares of American Eagle Outfitters by 37.7% in the first quarter. Millennium Management LLC now owns 3,455,961 shares of the apparel retailer’s stock worth $40,158,000 after buying an additional 946,904 shares in the last quarter. Kinetic Partners Management LP bought a new position in American Eagle Outfitters in the 3rd quarter valued at approximately $14,618,000. Finally, Vaughan Nelson Investment Management L.P. lifted its holdings in shares of American Eagle Outfitters by 41.7% during the second quarter. Vaughan Nelson Investment Management L.P. now owns 2,307,326 shares of the apparel retailer’s stock valued at $22,196,000 after purchasing an additional 678,536 shares in the last quarter. 97.33% of the stock is owned by hedge funds and other institutional investors.

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.