American Eagle Outfitters Inc. [NYSE: AEO] gained 1.97% or 0.7 points to close at $36.23 with a heavy trading volume of 4875858 shares. The company report on April 15, 2021 that American Eagle Outfitters’ Business Accelerates Across American Eagle and Aerie Brands; First Quarter Revenue On-Track to Mid-Teens Growth vs. Pre-Covid 2019.
Approximately $120 million in first quarter operating income expected, fueled by strong demand and margin expansion.
American Eagle Outfitters (NYSE: AEO) announced that business is exceeding expectations with first quarter revenue on track to over $1 billion, a mid-teens increase compared to pre-COVID 2019 first quarter reported revenue. Demand has accelerated across the American Eagle and Aerie brands, generating strong margins, higher full-priced selling and reduced promotions. For the period, management expects operating income of approximately $120 million, compared to first quarter 2019 operating income of $48 million and adjusted operating income of $49 million.
It opened the trading session at $35.67, the shares rose to $36.905 and dropped to $35.67, the range by which the price of stock traded the whole day. The daily chart for AEO points out that the company has recorded 146.80% gains over the past six months. However, it is still -422.8% lower than its most recent low trading price.
If we look at the average trading volume of 4.49M shares, AEO reached to a volume of 4875858 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 $37.85 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 2.10. 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.
RBC Capital Mkts have made an estimate for American Eagle Outfitters Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on April 23, 2021. While these analysts kept the previous recommendation, Telsey Advisory Group raised their target price from $28 to $35. The new note on the price target was released on April 15, 2021, representing the official price target for American Eagle Outfitters Inc. stock. Previously, the target price had yet another raise to $31, while Cowen analysts kept a Outperform rating on AEO stock. On January 25, 2021, analysts increased their price target for AEO shares from 23 to 30.
The Average True Range (ATR) for American Eagle Outfitters Inc. is set at 1.49, with the Price to Sales ratio for AEO stock in the period of the last 12 months amounting to 1.57. The Price to Book ratio for the last quarter was 5.56, with the Price to Cash per share for the same quarter was set at 5.23. Price to Free Cash Flow for AEO in the course of the last twelve months was 114.12 with Quick ratio for the last quarter at 1.30.
Trading performance analysis for AEO stock
American Eagle Outfitters Inc. [AEO] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 4.08. With this latest performance, AEO shares gained by 24.12% in over the last four-week period, additionally plugging by 146.80% over the last 6 months – not to mention a rise of 365.08% 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 65.95, with the RSI for the last a single of trading hit 64.54, and the three-weeks RSI is set at 66.11 for American Eagle Outfitters Inc. [AEO]. The present Moving Average for the last 50 days of trading for this stock 29.81, while it was recorded at 36.55 for the last single week of trading, and 19.65 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 +0.23 and a Gross Margin at +26.22. American Eagle Outfitters Inc.’s Net Margin is presently recorded at -5.57.
Return on Total Capital for AEO is now 0.30, given the latest momentum, and Return on Invested Capital for the company is -8.19. Return on Equity for this stock declined to -17.93, with Return on Assets sitting at -5.52. 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 165.89. Additionally, AEO Total Debt to Total Capital is recorded at 62.39, with Total Debt to Total Assets ending up at 47.10. Long-Term Debt to Equity for the company is recorded at 135.65, with the Long-Term Debt to Total Capital now at 51.02.
Reflecting on the efficiency of the workforce at the company, American Eagle Outfitters Inc. [AEO] managed to generate an average of -$5,656 per employee. Receivables Turnover for the company is 28.35 with a Total Asset Turnover recorded at a value of 0.99.American Eagle Outfitters Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.30 and a Current Ratio set at 1.80.
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 -0.84/share EPS, while the average EPS was predicted by analysts to be reported at -0.3/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -180.00%. 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 7.70%.
An analysis of insider ownership at American Eagle Outfitters Inc. [AEO]
There are presently around $6,493 million, in the hands of institutional investors. The top three institutional holders of AEO stocks are: BLACKROCK INC. with ownership of 16,694,487, which is approximately 1.149% of the company’s market cap and around 1.10% of the total institutional ownership; VANGUARD GROUP INC, holding 13,386,409 shares of the stock with an approximate value of $475.62 million in AEO stocks shares; and FMR LLC, currently with $456.45 million in AEO stock with ownership of nearly 38.822% of the company’s market capitalization.
Positions in American Eagle Outfitters Inc. stocks held by institutional investors increased at the end of March and at the time of the March reporting period, where 114 institutional holders increased their position in American Eagle Outfitters Inc. [NYSE:AEO] by around 24,346,672 shares. Additionally, 171 investors decreased positions by around 36,520,647 shares, while 36 investors held positions by with 121,871,651 shares. The mentioned changes placed institutional holdings at 182,738,970 shares, according to the latest SEC report filing. AEO stock had 44 new institutional investments in for a total of 7,137,394 shares, while 38 institutional investors sold positions of 8,476,499 shares during the same period.