American Eagle Outfitters Inc. [AEO] is -18.64% lower this YTD. Is it still time to buy?

American Eagle Outfitters Inc. [NYSE: AEO] loss -3.70% or -0.46 points to close at $11.96 with a heavy trading volume of 7450350 shares. It opened the trading session at $12.43, the shares rose to $12.43 and dropped to $11.82, the range by which the price of stock traded the whole day. The daily chart for AEO points out that the company has recorded -18.25% loss over the past six months. However, it is still -83.15% lower than its most recent low trading price.

If we look at the average trading volume of 8.26M shares, AEO reached to a volume of 7450350 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about American Eagle Outfitters Inc. [AEO]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for AEO shares is $12.63 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on AEO stock is a recommendation set at 2.60. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Morgan Stanley have made an estimate for American Eagle Outfitters Inc. shares, keeping their opinion on the stock as Equal-Weight, with their previous recommendation back on June 04, 2020. The new note on the price target was released on May 06, 2020, representing the official price target for American Eagle Outfitters Inc. stock. Previously, the target price had yet another drop from $14 to $7, while Loop Capital kept a Sell rating on AEO stock.

The Average True Range (ATR) for American Eagle Outfitters Inc. is set at 0.81, with the Price to Sales ratio for AEO stock in the period of the last 12 months amounting to 0.48. The Price to Book ratio for the last quarter was 2.00, with the Price to Cash per share for the same quarter was set at 5.60.

Trading performance analysis for AEO stock

American Eagle Outfitters Inc. [AEO] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.33. With this latest performance, AEO shares gained by 36.53% in over the last four-week period, additionally sinking by -18.25% over the last 6 months – not to mention a drop of -32.31% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for AEO stock in for the last two-week period is set at 60.12, with the RSI for the last a single of trading hit 58.58, and the three-weeks RSI is set at 59.36 for American Eagle Outfitters Inc. [AEO]. The present Moving Average for the last 50 days of trading for this stock 9.28, while it was recorded at 11.96 for the last single week of trading, and 12.94 for the last 200 days.

American Eagle Outfitters Inc. [AEO]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and American Eagle Outfitters Inc. [AEO] shares currently have an operating margin of +7.28 and a Gross Margin at +31.18. American Eagle Outfitters Inc.’s Net Margin is presently recorded at +4.44.

Return on Total Capital for AEO is now 15.17, given the latest momentum, and Return on Invested Capital for the company is 9.97. Return on Equity for this stock inclined to 15.09, with Return on Assets sitting at 6.69. When it comes to the capital structure of this company, American Eagle Outfitters Inc. [AEO] has a Total Debt to Total Equity ratio set at 128.29. Additionally, AEO Total Debt to Total Capital is recorded at 56.20, with Total Debt to Total Assets ending up at 42.63. Long-Term Debt to Equity for the company is recorded at 104.32, with the Long-Term Debt to Total Capital now at 45.69.

Reflecting on the efficiency of the workforce at the company, American Eagle Outfitters Inc. [AEO] managed to generate an average of $4,158 per employee. Receivables Turnover for the company is 40.54 with a Total Asset Turnover recorded at a value of 1.51.American Eagle Outfitters Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.70 and a Current Ratio set at 2.40.

American Eagle Outfitters Inc. [AEO]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, American Eagle Outfitters Inc. posted 0.39/share EPS, while the average EPS was predicted by analysts to be reported at 0.32/share.When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 21.90%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for AEO. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for American Eagle Outfitters Inc. go to -7.02%.

An analysis of insider ownership at American Eagle Outfitters Inc. [AEO]

There are presently around $1,843 million, or 95.50% of AEO stock, in the hands of institutional investors. The top three institutional holders of AEO stocks are: BLACKROCK INC. with ownership of 17,813,900, which is approximately -4.894% of the company’s market cap and around 1.10% of the total institutional ownership; VANGUARD GROUP INC, holding 15,376,228 shares of the stock with an approximate value of $190.97 million in AEO stocks shares; and COOKE & BIELER LP, currently with $145.11 million in AEO stock with ownership of nearly -3.908% of the company’s market capitalization.

Positions in American Eagle Outfitters Inc. stocks held by institutional investors increased at the end of June and at the time of the June reporting period, where 144 institutional holders increased their position in American Eagle Outfitters Inc. [NYSE:AEO] by around 14,966,765 shares. Additionally, 164 investors decreased positions by around 30,286,550 shares, while 32 investors held positions by with 103,169,761 shares. The mentioned changes placed institutional holdings at 148,423,076 shares, according to the latest SEC report filing. AEO stock had 45 new institutional investments in for a total of 8,866,668 shares, while 60 institutional investors sold positions of 4,968,227 shares during the same period.

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