Imperial Capital Downgrades Aeropostale to In-Line (ARO)
Aeropostale (NYSE:ARO) was downgraded by equities research analysts at Imperial Capital from an “outperform” rating to an “in-line” rating in a research note issued to investors on Friday, TheFlyOnTheWall.com reports. They currently have a $10.00 price target on the stock, down from their previous price target of $17.00. Imperial Capital’s price objective would suggest a potential downside of 8.93% from the company’s current price.
The analysts wrote, “While we had previously been patient in our expectations for a turnaround in the business, we are now increasingly concerned that improvements could be further delayed given the highly promotional environment for teen retail which could limit upside in the shares in the intermediate term. Management’s guidance for 3Q was well below our expectations and comp trends have deteriorated further in August with weak traffic trends leaving us increasingly uncertain about the timing of a potential turnaround. We continue to believe the company is better positioned from a fashion merchandise perspective and has the potential to improve its sales and margins longer term, however, the path ahead will likely prove challenging and would recommend taking a wait-and-see approach to the shares.”
Several other analysts have also recently commented on the stock. Analysts at Barclays Capital set a $10.00 price target on shares of Aeropostale in a research note to investors on Friday. Separately, analysts at Topeka Capital Markets downgraded shares of Aeropostale from a “buy” rating to a “hold” rating in a research note to investors on Friday. They now have a $12.00 price target on the stock, down previously from $18.00. Finally, 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. They now have a “buy” rating on the stock.
Five equities research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and seven have given a buy rating to the company’s stock. The company has a consensus rating of “Hold” and an average target price of $12.68.
Shares of Aeropostale (NYSE:ARO) traded down 21.07% on Friday, hitting $8.667. The stock had a trading volume of 17,853,580 shares. Aeropostale has a 1-year low of $10.88 and a 1-year 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 $680.1 million and a P/E ratio of 76.25. Aeropostale also was the target of unusually large options trading on Thursday. Stock investors purchased 5,973 call options on the company. This is an increase of 148% compared to the typical volume of 2,406 call options.
Aeropostale (NYSE:ARO) last issued its quarterly 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.
In other Aeropostale news, Director Karin Hirtler-Garvey sold 16,875 shares of Aeropostale stock in a transaction that occured on Wednesday, August 14th. The shares were sold at an average price of $12.70, for a total transaction of $214,312.50. Following the completion of the transaction, the director now directly owns 54,557 shares of the company’s stock. The transaction was disclosed in a 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.
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