American Eagle Outfitters' Stock Rises 0.8% Following Strong Quarterly Earnings Report

On December 6, 2024, shares of American Eagle Outfitters, Inc. (NYSE:AEO) rose by 0.8% during mid-day trading in response to the company’s quarterly earnings exceeding expectations. The stock reached a peak of $20.12 before settling at $20.09. During this trading session, around 1,302,310 shares were exchanged, reflecting a significant decrease of 71% compared to the average daily volume of 4,522,815 shares. The stock had previously closed at $19.93.

The popular apparel retailer reported earnings of $0.48 per share for the quarter, surpassing the consensus estimate of $0.46 by $0.02. The company generated revenue of $1.29 billion for the quarter, slightly below the forecast of $1.30 billion. American Eagle Outfitters posted a return on equity of 20.98% and a net margin of 4.58%. However, revenue declined by 0.9% year-over-year, and in the same quarter of the previous year, the company had earnings of $0.49 per share.

Quarterly Dividend Announcement

Additionally, the company announced a quarterly dividend, which was distributed on October 30th. Shareholders recorded on October 11th received a dividend of $0.125, equating to an annualized dividend of $0.50 and representing a yield of 2.84%. The ex-dividend date for this payment was also October 11th. The dividend payout ratio stands at 42.74%.

Analysts Adjust Price Targets

Following the earnings report, several analysts adjusted their price targets for American Eagle Outfitters. On September 2nd, StockNews.com downgraded the stock from a “buy” to a “hold” rating. The Telsey Advisory Group reduced its price target from $23.00 to $20.00 and assigned a “market perform” rating. UBS Group lowered its price objective from $34.00 to $32.00 while maintaining a “buy” stance on the stock. TD Cowen diminished its price target from $25.00 to $23.00 and retained a “hold” rating. Barclays also cut its price target from $32.00 to $26.00 but kept an “overweight” rating. Currently, one analyst has issued a sell rating, eight have rated the stock as a hold, and two rated it as a buy, leading to an average rating of “Hold” and an average price target of $22.80.

Insider Trading Activity

In other developments, CEO Jay L. Schottenstein sold 999,999 shares of the company stock on September 19th at an average price of $20.04, totaling approximately $20 million. After this sale, he retains ownership of 1,771,851 shares, worth around $35.5 million, marking a 36.08% reduction in his stake. This transaction was documented in a filing with the Securities and Exchange Commission. Furthermore, insider Jennifer M. Foyle sold 30,000 shares on October 1st, fetching approximately $654,000. Post-sale, she owns about 200,427 shares, valued at roughly $4.37 million, a 13.02% reduction from her previous holdings. In total, insiders have sold about 1,050,702 shares worth approximately $21.15 million in the last quarter, and corporate insiders now hold 7.30% of the company’s stock.

Institutional Investor Activity

A number of institutional investors have recently altered their positions in American Eagle Outfitters. Kathleen S. Wright Associates Inc. acquired a new stake in the company valued at about $32,000 during the third quarter. Advisors Asset Management Inc. boosted its holdings by 171.1%, now owning 2,548 shares worth around $57,000 after acquiring an additional 1,608 shares. Other institutional moves include Innealta Capital’s new stake valued at approximately $78,000 and nVerses Capital’s investment around $108,000. Wilmington Savings Fund Society FSB also purchased shares in the third quarter for around $141,000. Overall, institutional investors and hedge funds collectively own 97.33% of American Eagle Outfitters.

Current Stock Performance

As of now, the company’s stock is down by 14.2% over recent weeks. American Eagle Outfitters has a fifty-day moving average price of $19.77 and a two-hundred-day moving average price of $20.50. The company reports a market capitalization of $3.38 billion, with a price-to-earnings ratio of 15.02, a P/E/G ratio of 0.99, and a beta value of 1.51.

About the Company

American Eagle Outfitters, Inc. operates as a multi-brand specialty retailer both in the United States and internationally. It offers jeans, apparel, accessories, and personal care products for men and women under the American Eagle brand, in addition to intimate apparel, activewear, and swimwear through its Aerie and OFFLINE by Aerie brands.

American, Eagle, Outfitters