BMO Capital Markets Upgrades American Eagle Outfitters (NYSE:AEO) to “Hold”

American Eagle Outfitters (NYSE:AEO) was upgraded by equities researchers at BMO Capital Markets to a “hold” rating in a research report issued on Tuesday, Zacks reports.

A number of other equities analysts also recently commented on the stock. Barclays set a $15.00 target price on shares of American Eagle Outfitters in a research note on Thursday. Bank of America reaffirmed an “underperform” rating and set a $16.00 price target on shares of American Eagle Outfitters in a research note on Friday, August 14th. William Blair reiterated a “buy” rating on shares of American Eagle Outfitters in a report on Wednesday, July 15th. Wall Street Zen raised American Eagle Outfitters from a “hold” rating to a “buy” rating in a research note on Saturday, September 5th. Finally, UBS Group reduced their price objective on American Eagle Outfitters from $31.00 to $27.00 and set a “buy” rating on the stock in a report on Thursday. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $19.36.

American Eagle Outfitters Stock Down 13.9%

Shares of AEO opened at $14.53 on Tuesday. The firm has a fifty day moving average price of $16.97 and a 200-day moving average price of $17.55. The company has a current ratio of 1.55, a quick ratio of 0.53 and a debt-to-equity ratio of 0.05. The firm has a market capitalization of $2.44 billion, a P/E ratio of 7.42, a P/E/G ratio of 3.69 and a beta of 1.33. American Eagle Outfitters has a 12-month low of $14.06 and a 12-month high of $28.46.

American Eagle Outfitters (NYSE:AEO) last posted its quarterly earnings results on Wednesday, September 9th. The apparel retailer reported $0.79 EPS for the quarter, topping the consensus estimate of $0.22 by $0.57. American Eagle Outfitters had a net margin of 5.91% and a return on equity of 24.02%. The company had revenue of $1.38 billion for the quarter, compared to the consensus estimate of $1.37 billion. During the same quarter last year, the firm posted $0.45 EPS. The firm’s revenue was up 7.5% compared to the same quarter last year. Equities research analysts expect that American Eagle Outfitters will post 1.76 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director David M. Sable sold 5,779 shares of the business’s stock in a transaction dated Friday, July 17th. The shares were sold at an average price of $17.23, for a total value of $99,572.17. Following the completion of the sale, the director owned 53,481 shares in the company, valued at approximately $921,477.63. The trade was a 9.75% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Cary McMillan sold 2,892 shares of the business’s stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $16.77, for a total transaction of $48,498.84. The SEC filing for this sale provides additional information. Insiders have sold a total of 11,563 shares of company stock worth $196,599 in the last three months. Corporate insiders own 8.95% of the company’s stock.

Hedge Funds Weigh In On American Eagle Outfitters

Hedge funds and other institutional investors have recently modified their holdings of the business. Plato Investment Management Ltd purchased a new position in American Eagle Outfitters during the second quarter valued at approximately $25,000. Kemnay Advisory Services Inc. purchased a new stake in American Eagle Outfitters during the fourth quarter worth $31,000. Aster Capital Management DIFC Ltd purchased a new stake in American Eagle Outfitters during the fourth quarter worth $32,000. Raymond James Financial Inc. bought a new stake in American Eagle Outfitters during the 2nd quarter valued at $35,000. Finally, Allworth Financial LP bought a new stake in American Eagle Outfitters during the 2nd quarter valued at $36,000. 97.33% of the stock is currently owned by institutional investors.

More American Eagle Outfitters News

Here are the key news stories impacting American Eagle Outfitters this week:

• Positive Sentiment: Second-quarter revenue increased 8% year over year to approximately $1.38 billion, narrowly exceeding estimates. Total comparable sales rose 6%, supported by Aerie and OFFLINE, while earnings of $0.79 per share significantly surpassed the roughly $0.22 consensus estimate. American Eagle Outfitters beats quarterly revenue estimates
• Positive Sentiment: Management cited strength in Aerie intimates, sleepwear and apparel, and issued a stronger fiscal 2026 operating-income outlook that incorporates tariff-related benefits. The company’s low leverage and ongoing brand improvement provide additional financial support. American Eagle Q2 Earnings Beat on Tariff Refunds, Aerie Strength
• Neutral Sentiment: Analysts reduced price targets following the report: Morgan Stanley lowered its target to $17 and Telsey Advisory Group to $18, while UBS cut its target to $27 but retained a Buy rating. These targets remain above the recent trading level, but the revisions signal reduced confidence in near-term execution.
• Negative Sentiment: The headline profit beat was substantially helped by an estimated $161 million in tariff refunds, raising concerns about earnings durability. Without that benefit, underlying profitability and merchandise margins would have appeared less robust. American Eagle shares slide as flat margin outlook, weak core brand weigh
• Negative Sentiment: American Eagle’s core-brand comparable sales fell 1%, and management acknowledged that more work is needed on the banner. Aerie’s sales growth also slowed, while the company maintained its annual same-store-sales forecast and projected flat third-quarter gross margins. Investors interpreted the outlook as evidence that cautious consumers and brand pressure remain unresolved. American Eagle Stock Slumps on Signs of Weakness at Namesake Brand

About American Eagle Outfitters

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.