Aeropostale Downgraded to Hold at Topeka Capital Markets (ARO)
Aeropostale (NYSE:ARO) was downgraded by stock analysts at Topeka Capital Markets from a “buy” rating to a “hold” rating in a report issued on Friday, TheFlyOnTheWall.com reports. They currently have a $12.00 target price on the stock, down from their previous target price of $18.00. Topeka Capital Markets’ price objective would indicate a potential upside of 9.29% from the stock’s previous close.
The analysts wrote, “While we expected a bumpy flight as ARO debuted its new assortment, we didn’t anticipate the severity of the promotional environment in the teen sector. Though we still believe ARO’s new assortment is the right way to go, it will take longer than we thought to gain back customers. With a big loss now expected this year and reduced earnings visibility for next year, we are downgrading ARO from Buy to Hold.”
Shares of Aeropostale (NYSE:ARO) traded down 19.49% during mid-day trading on Friday, hitting $8.84. 11,090,393 shares of the company’s stock traded hands. Aeropostale has a 52 week low of $10.88 and a 52 week high of $17.10. The stock’s 50-day moving average is $13.90 and its 200-day moving average is $14.06. The company has a market cap of $693.7 million and a price-to-earnings ratio of 76.25. Aeropostale also was the recipient of some unusual options trading activity on Thursday. Stock traders purchased 5,973 call options on the company. This represents an increase of 148% compared to the average daily volume of 2,406 call options.
Aeropostale (NYSE:ARO) last released its earnings data on Thursday, August 22nd. The company reported ($0.34) EPS for the quarter, missing the Thomson Reuters consensus estimate of ($0.24) by $0.10. The company had revenue of $454.00 million for the quarter, compared to the consensus estimate of $453.97 million. The company’s quarterly revenue was down 6.4% on a year-over-year basis. Analysts expect that Aeropostale will post $0.21 EPS for the current fiscal year.
A number of other analysts have also recently weighed in on ARO. Analysts at Jefferies Group cut their price target on shares of Aeropostale from $20.00 to $15.00 in a research note to investors on Friday. Separately, analysts at Bank of America Corp. downgraded shares of Aeropostale from a “neutral” rating to an “underperform” rating in a research note to investors on Friday. They now have a $9.00 price target on the stock, down previously from $18.00. Finally, analysts at KeyCorp downgraded shares of Aeropostale from a “hold” rating to an “underweight” rating in a research note to investors on Wednesday, August 14th. They now have a $10.00 price target on the stock.
Five research analysts have rated the stock with a sell rating, eleven have issued a hold rating and six have assigned a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and a consensus target price of $13.00.
In other Aeropostale news, Director Karin Hirtler-Garvey sold 16,875 shares of Aeropostale stock on the open market in a transaction that occured on Wednesday, August 14th. The shares were sold at an average price of $12.70, for a total value of $214,312.50. Following the transaction, the director now directly owns 54,557 shares in the company. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link.
Aeropostale, Inc, (NYSE:ARO) is a mall-based, specialty retailer of casual apparel and accessories, principally targeting 14 to 17 year-old young women and men through its Aeropostale stores and 4 to 12 year-old kids through its P.
Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.