For American Eagle Outfitters Inc. [AEO], Analyst sees a drop to $8. What next?


American Eagle Outfitters Inc. [NYSE: AEO] surged by $0.81 during the normal trading session on Friday and reaching a high of $12.855 during the day while it closed the day at $12.79. The company report on June 3, 2022 that AEO Inc. Announces a Series of Actions to Strengthen Capital Structure.

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Enters Into Exchange Agreements for Outstanding Convertible Senior Notes due 2025.

American Eagle Outfitters Inc. stock has also loss -8.77% of its value over the past 7 days. However, AEO stock has declined by -29.26% in the 3 months of the year. Over the past six months meanwhile, it has lost -51.29% and lost -49.49% year-on date.

The market cap for AEO stock reached $2.03 billion, with 168.46 million shares outstanding and 158.84 million shares in the current float. Compared to the average trading volume of 7.22M shares, AEO reached a trading volume of 12834014 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say 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 $17.36 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.

Morgan Stanley have made an estimate for American Eagle Outfitters Inc. shares, keeping their opinion on the stock as Underweight, with their previous recommendation back on May 31, 2022. While these analysts kept the previous recommendation, JP Morgan dropped their target price from $20 to $15. The new note on the price target was released on May 27, 2022, representing the official price target for American Eagle Outfitters Inc. stock. Previously, the target price had yet another drop from $39 to $14, while Citigroup kept a Neutral rating on AEO stock. On April 01, 2022, analysts decreased their price target for AEO shares from 24 to 19.

The Average True Range (ATR) for American Eagle Outfitters Inc. is set at 0.90, with the Price to Sales ratio for AEO stock in the period of the last 12 months amounting to 0.40. The Price to Book ratio for the last quarter was 1.56, with the Price to Cash per share for the same quarter was set at 1.44.

AEO stock trade performance evaluation

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 -8.77. With this latest performance, AEO shares dropped by -19.36% in over the last four-week period, additionally sinking by -51.29% over the last 6 months – not to mention a drop of -61.91% 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 42.28, with the RSI for the last a single of trading hit 44.53, and the three-weeks RSI is set at 41.19 for American Eagle Outfitters Inc. [AEO]. The present Moving Average for the last 50 days of trading for this stock 15.23, while it was recorded at 12.41 for the last single week of trading, and 22.26 for the last 200 days.

American Eagle Outfitters Inc. [AEO]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and American Eagle Outfitters Inc. [AEO] shares currently have an operating margin of +12.12 and a Gross Margin at +36.51. American Eagle Outfitters Inc.’s Net Margin is presently recorded at +8.37.

Return on Equity for this stock inclined to 33.43, with Return on Assets sitting at 10.45.

American Eagle Outfitters Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.80 and a Current Ratio set at 1.70.

Earnings per share (EPS) analysis for American Eagle Outfitters Inc. [AEO] stock

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 3.54%.

American Eagle Outfitters Inc. [AEO]: Insider Ownership positions

There are presently around $2,335 million, in the hands of institutional investors. The top three institutional holders of AEO stocks are: FMR LLC with ownership of 25,169,977, which is approximately 0.121% of the company’s market cap and around 1.20% of the total institutional ownership; SELECT EQUITY GROUP, L.P., holding 21,929,395 shares of the stock with an approximate value of $280.48 million in AEO stocks shares; and BLACKROCK INC., currently with $248.09 million in AEO stock with ownership of nearly -4.177% of the company’s market capitalization.

Positions in American Eagle Outfitters Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 173 institutional holders increased their position in American Eagle Outfitters Inc. [NYSE:AEO] by around 20,893,983 shares. Additionally, 175 investors decreased positions by around 23,420,015 shares, while 38 investors held positions by with 138,278,287 shares. The mentioned changes placed institutional holdings at 182,592,285 shares, according to the latest SEC report filing. AEO stock had 59 new institutional investments in for a total of 4,906,153 shares, while 72 institutional investors sold positions of 13,076,610 shares during the same period.