American Eagle Outfitters (NYSE:AEO) Shares Gap Up Following Earnings Beat

Shares of American Eagle Outfitters, Inc. (NYSE:AEO) gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $20.83, but opened at $23.86. American Eagle Outfitters shares last traded at $24.0220, with a volume of 9,878,265 shares.

The apparel retailer reported $0.53 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.43 by $0.10. American Eagle Outfitters had a return on equity of 13.82% and a net margin of 3.90%.The company had revenue of $1.36 billion during the quarter, compared to analyst estimates of $1.32 billion. During the same quarter in the previous year, the firm posted $0.48 EPS. The firm’s quarterly revenue was up 2.9% on a year-over-year basis.

American Eagle Outfitters Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, January 23rd. Investors of record on Friday, January 9th will be issued a $0.125 dividend. The ex-dividend date of this dividend is Friday, January 9th. This represents a $0.50 annualized dividend and a yield of 2.1%. American Eagle Outfitters’s dividend payout ratio is presently 43.10%.

Analyst Upgrades and Downgrades

Several equities analysts have commented on the stock. UBS Group raised their target price on shares of American Eagle Outfitters from $22.00 to $31.00 and gave the company a “buy” rating in a research note on Wednesday. BTIG Research initiated coverage on shares of American Eagle Outfitters in a report on Thursday, September 18th. They issued a “neutral” rating for the company. Citigroup raised their price objective on shares of American Eagle Outfitters from $18.00 to $23.00 and gave the company a “neutral” rating in a research note on Wednesday. Wall Street Zen raised American Eagle Outfitters from a “hold” rating to a “buy” rating in a report on Saturday, September 13th. Finally, JPMorgan Chase & Co. raised American Eagle Outfitters from an “underweight” rating to a “neutral” rating and increased their price target for the company from $14.00 to $20.00 in a research note on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, eleven have issued a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $21.10.

Insider Buying and Selling

In related news, Director Janice E. Page sold 26,869 shares of American Eagle Outfitters stock in a transaction on Monday, September 8th. The stock was sold at an average price of $18.04, for a total value of $484,716.76. Following the transaction, the director directly owned 90,383 shares in the company, valued at $1,630,509.32. The trade was a 22.92% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Jennifer M. Foyle sold 54,950 shares of the business’s stock in a transaction on Monday, September 8th. The stock was sold at an average price of $18.14, for a total value of $996,793.00. Following the sale, the insider directly owned 221,107 shares in the company, valued at $4,010,880.98. This trade represents a 19.91% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 138,766 shares of company stock valued at $2,515,354 in the last three months. Insiders own 8.70% of the company’s stock.

Hedge Funds Weigh In On American Eagle Outfitters

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Strategic Investment Solutions Inc. IL increased its stake in American Eagle Outfitters by 50.0% in the 3rd quarter. Strategic Investment Solutions Inc. IL now owns 1,500 shares of the apparel retailer’s stock worth $26,000 after purchasing an additional 500 shares in the last quarter. Raymond James Financial Inc. purchased a new stake in American Eagle Outfitters during the second quarter valued at about $35,000. Strs Ohio acquired a new position in shares of American Eagle Outfitters in the third quarter worth about $36,000. Federated Hermes Inc. increased its position in shares of American Eagle Outfitters by 151.0% in the second quarter. Federated Hermes Inc. now owns 3,848 shares of the apparel retailer’s stock worth $37,000 after acquiring an additional 2,315 shares in the last quarter. Finally, McIlrath & Eck LLC purchased a new position in shares of American Eagle Outfitters in the third quarter worth approximately $39,000. Institutional investors and hedge funds own 97.33% of the company’s stock.

American Eagle Outfitters Price Performance

The company has a debt-to-equity ratio of 0.13, a current ratio of 1.63 and a quick ratio of 0.71. The firm has a market cap of $4.11 billion, a price-to-earnings ratio of 20.91 and a beta of 1.44. The stock’s fifty day moving average price is $17.40 and its 200-day moving average price is $14.14.

About American Eagle Outfitters

American Eagle Outfitters, Inc operates as a multi-brand specialty retailer in the United States and internationally. The company provides jeans, apparel and accessories, and personal care products for women and men under the American Eagle brand; and intimates, apparel, activewear, and swim collections under the Aerie and OFFLINE by Aerie brands.