American Eagle Outfitters Inc. [AEO] gain 9.03% so far this year. What now?

American Eagle Outfitters Inc. [NYSE: AEO] traded at a high on 01/10/23, posting a 2.08 gain after which it closed the day’ session at $15.22. The company report on January 9, 2023 that American Eagle Outfitters Announces Fourth Quarter Revenue and Profit Tracking at the High End of Guidance.

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American Eagle Outfitters, Inc. (NYSE:AEO) today announced that fourth quarter-to-date brand revenue, through Saturday, January 7, 2023, is down approximately 3%, on the higher end of our expectations, with American Eagle tracking slightly ahead and Aerie in line with expectations. Quiet Logistics is expected to add 2 percentage points to fourth quarter brand revenue. Gross margins are now expected to be on the high end of the company’s guidance of 32-33%, reflecting controlled promotions fueled by strong inventory management. Current inventory is well-positioned with quarter-end inventories expected to be down compared to last year, in-line with prior guidance.

“Following record performance last year, we achieved our second highest holiday sales period in company history. I am pleased to see profit margins tracking at the high end of our expectations, powered by excellent inventory management and promotional discipline,” commented Jay Schottenstein, AEO’s Executive Chairman of the Board and Chief Executive Officer. “Looking ahead, we are focused on delivering a leading customer experience across brands, while prioritizing free cash flow and shareholder returns.”.

The results of the trading session contributed to over 5185809 shares changing hands. Over the past one week, the price volatility of American Eagle Outfitters Inc. stands at 4.33% while the volatility over the past one month is 3.86%.

The market cap for AEO stock reached $2.81 billion, with 186.31 million shares outstanding and 175.68 million shares in the current float. Compared to the average trading volume of 4.88M shares, AEO reached a trading volume of 5185809 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus 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 $16.45 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 2.70. 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.

Cowen have made an estimate for American Eagle Outfitters Inc. shares, keeping their opinion on the stock as Market Perform, with their previous recommendation back on August 01, 2022. The new note on the price target was released on July 26, 2022, representing the official price target for American Eagle Outfitters Inc. stock. Previously, the target price had yet another drop from $22 to $13, while B. Riley Securities kept a Neutral rating on AEO stock. On May 31, 2022, analysts decreased their price target for AEO shares from 22 to 8.

The Average True Range (ATR) for American Eagle Outfitters Inc. is set at 0.62, with the Price to Sales ratio for AEO stock in the period of the last 12 months amounting to 0.56. The Price to Book ratio for the last quarter was 1.94, with the Price to Cash per share for the same quarter was set at 0.44.

How has AEO stock performed recently?

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 5.33. With this latest performance, AEO shares dropped by -6.40% in over the last four-week period, additionally plugging by 28.98% over the last 6 months – not to mention a drop of -36.45% 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 58.23, with the RSI for the last a single of trading hit 60.36, and the three-weeks RSI is set at 58.01 for American Eagle Outfitters Inc. [AEO]. The present Moving Average for the last 50 days of trading for this stock 13.99, while it was recorded at 15.05 for the last single week of trading, and 13.02 for the last 200 days.

American Eagle Outfitters Inc. [AEO]: Deeper insight into the 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 0.70 and a Current Ratio set at 1.90.

Earnings analysis for American Eagle Outfitters Inc. [AEO]

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 -13.82%.

Insider trade positions for American Eagle Outfitters Inc. [AEO]

There are presently around $2,680 million, or 99.95% of AEO stock, in the hands of institutional investors. The top three institutional holders of AEO stocks are: FMR LLC with ownership of 28,084,598, which is approximately 29.279% of the company’s market cap and around 0.20% of the total institutional ownership; BLACKROCK INC., holding 24,356,394 shares of the stock with an approximate value of $370.7 million in AEO stocks shares; and VANGUARD GROUP INC, currently with $267.43 million in AEO stock with ownership of nearly 15.589% 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 160 institutional holders increased their position in American Eagle Outfitters Inc. [NYSE:AEO] by around 35,512,268 shares. Additionally, 169 investors decreased positions by around 42,413,468 shares, while 30 investors held positions by with 98,140,185 shares. The mentioned changes placed institutional holdings at 176,065,921 shares, according to the latest SEC report filing. AEO stock had 53 new institutional investments in for a total of 6,894,179 shares, while 71 institutional investors sold positions of 7,281,548 shares during the same period.


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