American Eagle Outfitters (NYSE:AEO) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Monday. The firm currently has a $25.00 price objective on the apparel retailer’s stock. Zacks Investment Research‘s price target would suggest a potential upside of 17.98% from the company’s previous close.
According to Zacks, “American Eagle surpassed the industry year to date driven by robust comps trend and surprise history. Notably, comps improved for the 14th straight quarter in second-quarter fiscal 2018 backed by gains from strategic initiatives, and ability to boost market share through strong brands and compelling merchandise. Additionally, both digital and in-store businesses aided results. Further, the company delivered accelerated sales, continued sequential margin improvement and EPS growth in the fiscal second quarter. Both earnings and sales topped estimates, reflecting fifth sales beat in the last six quarters and third positive earnings surprise in last five quarters. Lower rent also aided gross margin growth. Further, the company’s omni-channel efforts along with accelerated Aerie brand growth bode well. However, high dependence on external suppliers and macroeconomic headwinds may dampen results. Stiff competition also poses threats.”
Several other brokerages have also issued reports on AEO. Bank of America lowered American Eagle Outfitters from a “neutral” rating to an “underperform” rating and set a $18.00 target price on the stock. in a research report on Thursday, November 1st. Wedbush lowered American Eagle Outfitters from an “outperform” rating to a “neutral” rating and set a $29.00 target price on the stock. in a research report on Monday, August 27th. They noted that the move was a valuation call. Citigroup raised American Eagle Outfitters from a “neutral” rating to a “buy” rating and set a $27.00 target price on the stock in a research report on Friday, October 19th. Jefferies Financial Group set a $33.00 target price on American Eagle Outfitters and gave the company a “buy” rating in a research report on Wednesday, July 25th. Finally, UBS Group upped their target price on American Eagle Outfitters from $33.00 to $34.00 and gave the company a “buy” rating in a research report on Thursday, August 30th. Two investment analysts have rated the stock with a sell rating, one has issued a hold rating and thirteen have assigned a buy rating to the company. The stock has a consensus rating of “Buy” and a consensus target price of $24.67.
American Eagle Outfitters (NYSE:AEO) last announced its earnings results on Wednesday, August 29th. The apparel retailer reported $0.34 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.31 by $0.03. American Eagle Outfitters had a return on equity of 20.24% and a net margin of 6.49%. The company had revenue of $964.85 million for the quarter, compared to analyst estimates of $937.98 million. During the same period in the prior year, the company posted $0.19 EPS. The firm’s quarterly revenue was up 14.2% compared to the same quarter last year. On average, equities analysts predict that American Eagle Outfitters will post 1.49 earnings per share for the current fiscal year.
In other American Eagle Outfitters news, Director Cary D. Mcmillan sold 16,993 shares of the business’s stock in a transaction dated Thursday, September 6th. The stock was sold at an average price of $24.87, for a total transaction of $422,615.91. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Charles F. Kessler sold 10,000 shares of the business’s stock in a transaction dated Tuesday, August 14th. The shares were sold at an average price of $28.00, for a total value of $280,000.00. Following the sale, the insider now owns 110,079 shares in the company, valued at approximately $3,082,212. The disclosure for this sale can be found here. 6.30% of the stock is currently owned by insiders.
Several institutional investors and hedge funds have recently modified their holdings of the company. BlackRock Inc. boosted its stake in shares of American Eagle Outfitters by 2.4% in the third quarter. BlackRock Inc. now owns 21,709,700 shares of the apparel retailer’s stock worth $539,051,000 after buying an additional 508,052 shares during the last quarter. Bank of New York Mellon Corp boosted its stake in shares of American Eagle Outfitters by 3.1% in the third quarter. Bank of New York Mellon Corp now owns 4,854,171 shares of the apparel retailer’s stock worth $120,529,000 after buying an additional 143,754 shares during the last quarter. Gilder Gagnon Howe & Co. LLC purchased a new stake in shares of American Eagle Outfitters in the third quarter worth about $87,588,000. Northern Trust Corp boosted its stake in shares of American Eagle Outfitters by 8.5% in the second quarter. Northern Trust Corp now owns 3,441,150 shares of the apparel retailer’s stock worth $80,008,000 after buying an additional 269,159 shares during the last quarter. Finally, JPMorgan Chase & Co. boosted its stake in shares of American Eagle Outfitters by 4.1% in the third quarter. JPMorgan Chase & Co. now owns 3,180,333 shares of the apparel retailer’s stock worth $78,968,000 after buying an additional 125,615 shares during the last quarter. Hedge funds and other institutional investors own 86.66% of the company’s stock.
American Eagle Outfitters Company Profile
American Eagle Outfitters, Inc operates as a specialty retailer that provides clothing, accessories, and personal care products under the American Eagle Outfitters and Aerie brands. The company also provides jeans, and other apparel and accessories for men and women; and intimates, activewear, and swim collections, as well as personal care products for women.
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