Zacks Investment Research downgraded shares of American Eagle Outfitters, Inc. (NYSE:AEO) from a buy rating to a hold rating in a research note released on Tuesday.

According to Zacks, “American Eagle has outperformed the industry in the past three months driven by a robust second-quarter fiscal 2017. While the quarter marked the company's second straight quarter of sales beat, earnings topped estimates after a miss in the last quarter. The company also posted 10th straight quarter of positive comps on the back of strong online sales at both brands driven by efficient use of omni-channel capabilities to enhance customer experience. Also, its new loyalty program, AEO Connect is likely to enhance customers' experience. We commend American Eagle's focus on expansion, as evident from its plans to enter the Indian market. Moreover, the company remains optimistic about the second half of fiscal 2017, especially the fall season. However, margins have been strained owing to increased promotions and the company expects these trends to continue and hurt results. Estimates have been stable ahead of the third quarter earnings.”

Several other equities analysts also recently issued reports on the stock. Royal Bank Of Canada set a $14.00 price objective on shares of American Eagle Outfitters and gave the company a buy rating in a report on Tuesday, August 29th. BidaskClub downgraded shares of American Eagle Outfitters from a hold rating to a sell rating in a report on Thursday, July 27th. Deutsche Bank AG reaffirmed a hold rating and set a $12.00 price objective (down from $13.00) on shares of American Eagle Outfitters in a report on Friday, August 11th. Buckingham Research reaffirmed a neutral rating on shares of American Eagle Outfitters in a report on Thursday, August 24th. Finally, Oppenheimer Holdings, Inc. set a $13.00 price objective on shares of American Eagle Outfitters and gave the company a hold rating in a report on Wednesday, August 23rd. Three research analysts have rated the stock with a sell rating, nine have issued a hold rating and twelve have issued a buy rating to the stock. American Eagle Outfitters has an average rating of Hold and a consensus price target of $14.57.

Shares of American Eagle Outfitters (NYSE AEO) opened at $13.98 on Tuesday. The company has a market cap of $2,369.80, a price-to-earnings ratio of 11.64, a P/E/G ratio of 1.35 and a beta of 1.10. American Eagle Outfitters has a 52-week low of $10.23 and a 52-week high of $19.00.

American Eagle Outfitters (NYSE:AEO) last released its quarterly earnings results on Wednesday, August 23rd. The apparel retailer reported $0.19 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.16 by $0.03. The company had revenue of $845.00 million for the quarter, compared to analyst estimates of $823.84 million. American Eagle Outfitters had a net margin of 4.85% and a return on equity of 18.25%. The firm’s revenue was up 2.7% on a year-over-year basis. During the same quarter last year, the business earned $0.23 earnings per share. research analysts forecast that American Eagle Outfitters will post 1.13 earnings per share for the current fiscal year.

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The business also recently declared a quarterly dividend, which was paid on Friday, October 20th. Shareholders of record on Friday, October 6th were given a dividend of $0.125 per share. This represents a $0.50 dividend on an annualized basis and a dividend yield of 3.58%. The ex-dividend date was Thursday, October 5th. American Eagle Outfitters’s dividend payout ratio is presently 51.55%.

In other American Eagle Outfitters news, insider Jennifer M. Foyle sold 13,500 shares of American Eagle Outfitters stock in a transaction dated Wednesday, September 27th. The shares were sold at an average price of $14.22, for a total transaction of $191,970.00. Following the completion of the sale, the insider now directly owns 27,531 shares in the company, valued at $391,490.82. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 5.80% of the stock is owned by company insiders.

Hedge funds have recently made changes to their positions in the stock. Zurcher Kantonalbank Zurich Cantonalbank grew its holdings in shares of American Eagle Outfitters by 9.3% in the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 8,533 shares of the apparel retailer’s stock valued at $103,000 after purchasing an additional 729 shares in the last quarter. Ronald Blue & Co. LLC grew its holdings in shares of American Eagle Outfitters by 3.1% in the second quarter. Ronald Blue & Co. LLC now owns 10,476 shares of the apparel retailer’s stock valued at $126,000 after purchasing an additional 311 shares in the last quarter. Sterling Capital Management LLC acquired a new position in shares of American Eagle Outfitters in the second quarter valued at approximately $128,000. CIBC World Markets Inc. grew its holdings in shares of American Eagle Outfitters by 0.6% in the second quarter. CIBC World Markets Inc. now owns 11,035 shares of the apparel retailer’s stock valued at $133,000 after purchasing an additional 63 shares in the last quarter. Finally, Riverhead Capital Management LLC grew its holdings in shares of American Eagle Outfitters by 91.1% in the second quarter. Riverhead Capital Management LLC now owns 11,082 shares of the apparel retailer’s stock valued at $134,000 after purchasing an additional 5,282 shares in the last quarter. Hedge funds and other institutional investors own 84.12% of the company’s stock.

About American Eagle Outfitters

American Eagle Outfitters, Inc (AEO Inc) is a multi-brand specialty retailer. The Company offers a range of apparel and accessories for men and women under the American Eagle Outfitters Brand (AEO Brand), and intimates, apparel and personal care products for women under the Aerie brand. AEO Inc operates stores in the United States, Canada, Mexico, Hong Kong, China and the United Kingdom.

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Analyst Recommendations for American Eagle Outfitters (NYSE:AEO)

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