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

American Eagle Outfitters (NYSE:AEO) had its price target decreased by equities researchers at UBS Group from $31.00 to $27.00 in a note issued to investors on Thursday, Benzinga reports. The firm currently has a “buy” rating on the apparel retailer’s stock. UBS Group’s price target would suggest a potential upside of 83.80% from the company’s previous close.

Other research analysts have also recently issued research reports about the stock. Wall Street Zen upgraded shares of American Eagle Outfitters from a “hold” rating to a “buy” rating in a report on Saturday, September 5th. William Blair reissued a “buy” rating on shares of American Eagle Outfitters in a report on Wednesday, July 15th. Weiss Ratings restated a “hold (c)” rating on shares of American Eagle Outfitters in a report on Thursday, August 27th. Bank of America restated an “underperform” rating and issued a $16.00 price target on shares of American Eagle Outfitters in a report on Friday, August 14th. Finally, TD Cowen decreased their target price on shares of American Eagle Outfitters from $19.00 to $18.00 and set a “hold” rating for the company in a research report on Monday, May 18th. Two analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, American Eagle Outfitters currently has an average rating of “Hold” and an average price target of $19.64.

American Eagle Outfitters Trading Down 13.0%

AEO 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 market capitalization of $2.46 billion, a PE ratio of 9.00, a PEG ratio of 3.76 and a beta of 1.33. American Eagle Outfitters has a 1-year low of $14.06 and a 1-year high of $28.46. The firm has a 50-day moving average price of $17.01 and a two-hundred day moving average price of $17.63.

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, topping analysts’ consensus estimates of $0.22 by $0.57. The company had revenue of $1.38 billion for the quarter, compared to analyst estimates of $1.37 billion. American Eagle Outfitters had a net margin of 5.01% and a return on equity of 20.95%. American Eagle Outfitters’s quarterly revenue was up 7.5% on a year-over-year basis. During the same period in the prior year, the business earned $0.45 earnings per share. As a group, equities analysts anticipate that American Eagle Outfitters will post 1.76 earnings per share for the current fiscal year.

Insider Transactions at American Eagle Outfitters

In other news, Director David Sable sold 5,779 shares of the business’s stock in a transaction dated Friday, July 17th. The shares were sold at an average price of $17.23, for a total value of $99,572.17. Following the completion of the sale, the director owned 53,481 shares of the company’s stock, valued at approximately $921,477.63. The trade was a 9.75% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Cary D. Mcmillan sold 2,892 shares of the firm’s stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $16.77, for a total transaction of $48,498.84. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 11,563 shares of company stock valued at $196,599. 8.95% of the stock is currently owned by corporate insiders.

Institutional Trading of American Eagle Outfitters

Several large investors have recently modified their holdings of AEO. BlackRock Inc. acquired a new stake in American Eagle Outfitters during the second quarter worth about $458,632,000. Dimensional Fund Advisors LP increased its position in American Eagle Outfitters by 5.8% during the 1st quarter. Dimensional Fund Advisors LP now owns 9,261,614 shares of the apparel retailer’s stock worth $154,663,000 after purchasing an additional 509,326 shares in the last quarter. State Street Corp lifted its stake in American Eagle Outfitters by 0.6% in the 4th quarter. State Street Corp now owns 6,606,362 shares of the apparel retailer’s stock valued at $174,210,000 after purchasing an additional 39,334 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its stake in shares of American Eagle Outfitters by 162.9% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 6,336,392 shares of the apparel retailer’s stock valued at $105,818,000 after acquiring an additional 3,926,230 shares during the last quarter. Finally, Goldman Sachs Group Inc. raised its position in American Eagle Outfitters by 12.8% in the fourth quarter. Goldman Sachs Group Inc. now owns 6,000,419 shares of the apparel retailer’s stock valued at $158,231,000 after purchasing an additional 680,332 shares during the last quarter. 97.33% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about American Eagle Outfitters

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.