Zacks Investment Research Downgrades American Eagle Outfitters (AEO) to Hold
American Eagle Outfitters (NYSE:AEO) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Friday.
According to Zacks, “American Eagle surpassed the industry year to date driven by robust comps trend. Notably, comps improved for the 13th straight quarter in first-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 first quarter. Both earnings and sales topped estimates, reflecting fourth sales beat in the last five quarters. Lower rent and favorable markdown rates aided gross margin growth. Backed by the solid performance, the company provided a robust outlook for second-quarter fiscal 2018. However, high dependence on external suppliers and macroeconomic headwinds may dampen results. Additionally, stiff competition in the retail space poses threats.”
Other analysts have also recently issued reports about the company. ValuEngine cut American Eagle Outfitters from a “strong-buy” rating to a “buy” rating in a research report on Thursday, August 2nd. Jefferies Financial Group set a $33.00 price target on American Eagle Outfitters and gave the company a “buy” rating in a research note on Wednesday, July 25th. Loop Capital set a $27.00 price target on American Eagle Outfitters and gave the company a “buy” rating in a research note on Friday, July 6th. UBS Group initiated coverage on American Eagle Outfitters in a research note on Thursday, June 21st. They issued a “buy” rating on the stock. Finally, B. Riley boosted their price target on American Eagle Outfitters from $26.00 to $27.00 and gave the company a “buy” rating in a research note on Monday, June 4th. Two equities research analysts have rated the stock with a sell rating, seven have given a hold rating and twelve have issued a buy rating to the company. American Eagle Outfitters presently has an average rating of “Hold” and a consensus target price of $21.88.
American Eagle Outfitters (NYSE:AEO) last released its quarterly earnings data on Thursday, May 31st. The apparel retailer reported $0.23 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.22 by $0.01. The business had revenue of $823.00 million for the quarter, compared to analysts’ expectations of $811.46 million. American Eagle Outfitters had a return on equity of 18.65% and a net margin of 5.67%. American Eagle Outfitters’s quarterly revenue was up 8.0% on a year-over-year basis. During the same period in the previous year, the business posted $0.16 earnings per share. sell-side analysts expect that American Eagle Outfitters will post 1.52 earnings per share for the current year.
In other news, insider Charles F. Kessler sold 10,000 shares of the business’s stock in a transaction on Tuesday, August 14th. The stock was sold at an average price of $28.00, for a total transaction of $280,000.00. Following the completion of the sale, the insider now owns 110,079 shares in the company, valued at $3,082,212. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Chairman Jay L. Schottenstein sold 1,950,000 shares of the business’s stock in a transaction on Tuesday, June 5th. The stock was sold at an average price of $24.13, for a total value of $47,053,500.00. Following the sale, the chairman now owns 1,072,535 shares of the company’s stock, valued at approximately $25,880,269.55. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 3,437,775 shares of company stock valued at $83,876,839. 6.30% of the stock is currently owned by corporate insiders.
Hedge funds have recently added to or reduced their stakes in the company. MUFG Americas Holdings Corp increased its holdings in American Eagle Outfitters by 99.3% in the second quarter. MUFG Americas Holdings Corp now owns 6,407 shares of the apparel retailer’s stock valued at $149,000 after purchasing an additional 3,193 shares during the last quarter. Cerebellum GP LLC increased its holdings in American Eagle Outfitters by 42.7% in the second quarter. Cerebellum GP LLC now owns 7,442 shares of the apparel retailer’s stock valued at $173,000 after purchasing an additional 2,226 shares during the last quarter. CAPROCK Group Inc. bought a new stake in American Eagle Outfitters in the second quarter valued at about $201,000. Bridgewater Associates LP bought a new stake in American Eagle Outfitters in the second quarter valued at about $202,000. Finally, Eqis Capital Management Inc. bought a new stake in American Eagle Outfitters in the second quarter valued at about $213,000. Institutional investors own 84.00% of the company’s stock.
About American Eagle Outfitters
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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