American Eagle Outfitters Inc. [AEO] stock Resumed by Jefferies analyst, price target now $42

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American Eagle Outfitters Inc. [NYSE: AEO] gained 2.59% or 0.61 points to close at $24.12 with a heavy trading volume of 8629410 shares. The company report on January 11, 2022 that American Eagle Outfitters Raises 2023 Financial Targets, Taking Operating Income to $800 Million Reflecting Outstanding Execution On Real Power. Real Growth. Plan; 2021 Operating Income On-Track to $600 Million Following Strong Holiday Demand.

AEO on track to achieve $600 million in operating income in 2021, surpassing 2023 operating income and margin goals two years ahead of schedule.


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New targets reflect $5.8 billion in revenue; 13.5% operating margin; and $800 million in operating income — a 26% CAGR from 2019-2023.

It opened the trading session at $23.60, the shares rose to $24.67 and dropped to $23.18, the range by which the price of stock traded the whole day. The daily chart for AEO points out that the company has recorded -33.72% loss over the past six months. However, it is still -10.9% lower than its most recent low trading price.

If we look at the average trading volume of 4.67M shares, AEO reached to a volume of 8629410 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 $39.00 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 2.20. 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.

Jefferies have made an estimate for American Eagle Outfitters Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on November 30, 2021. The new note on the price target was released on August 12, 2021, representing the official price target for American Eagle Outfitters Inc. stock. Previously, the target price had yet another raise from $35 to $38, while Telsey Advisory Group kept a Market Perform rating on AEO stock.

The Average True Range (ATR) for American Eagle Outfitters Inc. is set at 1.20, with the Price to Sales ratio for AEO stock in the period of the last 12 months amounting to 0.86. The Price to Book ratio for the last quarter was 2.90, with the Price to Cash per share for the same quarter was set at 4.32. Price to Free Cash Flow for AEO in the course of the last twelve months was 68.52 with Quick ratio for the last quarter at 1.20.

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 -5.34. With this latest performance, AEO shares dropped by -7.55% in over the last four-week period, additionally sinking by -33.72% over the last 6 months – not to mention a rise of 3.47% 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 45.46, with the RSI for the last a single of trading hit 45.21, and the three-weeks RSI is set at 45.65 for American Eagle Outfitters Inc. [AEO]. The present Moving Average for the last 50 days of trading for this stock 25.65, while it was recorded at 24.09 for the last single week of trading, and 30.38 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 1.20 and a Current Ratio set at 2.00.

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

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%.

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

There are presently around $4,277 million, in the hands of institutional investors. The top three institutional holders of AEO stocks are: FMR LLC with ownership of 25,137,132, which is approximately 0.525% of the company’s market cap and around 0.30% of the total institutional ownership; BLACKROCK INC., holding 21,171,001 shares of the stock with an approximate value of $510.64 million in AEO stocks shares; and SELECT EQUITY GROUP, L.P., currently with $473.26 million in AEO stock with ownership of nearly 10.479% of the company’s market capitalization.

Positions in American Eagle Outfitters Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 161 institutional holders increased their position in American Eagle Outfitters Inc. [NYSE:AEO] by around 15,124,421 shares. Additionally, 176 investors decreased positions by around 21,948,019 shares, while 42 investors held positions by with 140,268,838 shares. The mentioned changes placed institutional holdings at 177,341,278 shares, according to the latest SEC report filing. AEO stock had 48 new institutional investments in for a total of 3,183,172 shares, while 70 institutional investors sold positions of 9,570,794 shares during the same period.