American Eagle Outfitters Sees Unusually High Options Volume (NYSE:AEO)

American Eagle Outfitters, Inc. (NYSE:AEO) was the recipient of some unusual options trading activity on Wednesday. Stock investors acquired 17,034 call options on the company. This represents an increase of approximately 123% compared to the average volume of 7,648 call options.

American Eagle Outfitters Trading Up 5.7%

NYSE:AEO traded up $0.95 on Wednesday, reaching $17.68. 4,214,875 shares of the stock traded hands, compared to its average volume of 5,289,792. The company has a current ratio of 1.55, a quick ratio of 0.53 and a debt-to-equity ratio of 0.05. American Eagle Outfitters has a 1-year low of $12.50 and a 1-year high of $28.46. The company’s 50 day moving average is $17.16 and its 200-day moving average is $18.20. The firm has a market capitalization of $2.96 billion, a price-to-earnings ratio of 10.91, a price-to-earnings-growth ratio of 3.68 and a beta of 1.32.

American Eagle Outfitters (NYSE:AEO) last posted its quarterly earnings data on Thursday, May 28th. The apparel retailer reported $0.14 EPS for the quarter, beating analysts’ consensus estimates of $0.11 by $0.03. American Eagle Outfitters had a net margin of 5.01% and a return on equity of 20.95%. The company had revenue of $1.20 billion for the quarter, compared to analyst estimates of $1.18 billion. During the same period in the prior year, the firm posted ($0.29) EPS. The company’s quarterly revenue was up 9.7% on a year-over-year basis. Equities research analysts anticipate that American Eagle Outfitters will post 1.76 EPS for the current fiscal year.

American Eagle Outfitters Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, July 24th. Shareholders of record on Friday, July 10th were issued a $0.125 dividend. This represents a $0.50 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date was Friday, July 10th. American Eagle Outfitters’s payout ratio is presently 30.86%.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on AEO shares. Weiss Ratings cut American Eagle Outfitters from a “hold (c+)” rating to a “hold (c)” rating in a report on Monday, June 1st. Bank of America reissued an “underperform” rating and set a $16.00 target price on shares of American Eagle Outfitters in a report on Friday, August 14th. JPMorgan Chase & Co. raised their price target on shares of American Eagle Outfitters from $19.00 to $21.00 and gave the company a “neutral” rating in a research note on Tuesday, August 18th. Citigroup cut their price target on shares of American Eagle Outfitters from $24.00 to $18.00 and set a “neutral” rating on the stock in a report on Monday, June 1st. Finally, Barclays reduced their price objective on shares of American Eagle Outfitters from $19.00 to $17.00 and set an “equal weight” rating on the stock in a research note on Friday, May 29th. Two research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, American Eagle Outfitters currently has an average rating of “Hold” and a consensus target price of $20.09.

Insiders Place Their Bets

In related news, Director David M. Sable sold 5,779 shares of the firm’s stock in a transaction on Friday, July 17th. The stock was sold at an average price of $17.23, for a total transaction of $99,572.17. Following the sale, the director owned 53,481 shares of the company’s stock, valued at $921,477.63. This trade represents a 9.75% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Noel Joseph Spiegel sold 2,892 shares of the business’s stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $16.78, for a total value of $48,527.76. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 11,563 shares of company stock valued at $196,599. 8.95% of the stock is currently owned by insiders.

Institutional Investors Weigh In On American Eagle Outfitters

Several hedge funds and other institutional investors have recently bought and sold shares of AEO. Plato Investment Management Ltd bought a new position in shares of American Eagle Outfitters during the 2nd quarter worth about $25,000. Kemnay Advisory Services Inc. acquired a new position in American Eagle Outfitters during the 4th quarter worth approximately $31,000. Aster Capital Management DIFC Ltd bought a new position in American Eagle Outfitters in the fourth quarter worth approximately $32,000. Raymond James Financial Inc. acquired a new stake in American Eagle Outfitters in the second quarter valued at approximately $35,000. Finally, Allworth Financial LP bought a new stake in shares of American Eagle Outfitters during the second quarter valued at approximately $36,000. 97.33% of the stock is owned by institutional investors.

American Eagle Outfitters Company Profile

American Eagle Outfitters, Inc (NYSE: AEO) is a leading American specialty retailer offering apparel, accessories and personal care products for men and women. The company’s flagship brand, American Eagle, focuses on casualwear including denim, tops, outerwear and accessories targeted primarily at teens and young adults. In addition to its core apparel lines, the company operates the Aerie brand of intimates, loungewear and swimwear, which has gained recognition for its body-positive marketing and inclusive sizing.

American Eagle Outfitters conducts business through a combination of over 900 brick-and-mortar stores in North America and Greater China, complemented by a growing e-commerce platform that serves customers around the globe.