Could American Eagle Outfitters, Inc. (NYSE:AEO) Shares Be Helped By This Analyst Note?

Stock analysts at BMO Capital Markets, assumed coverage of shares of American Eagle Outfitters, Inc. (NYSE:AEO) with Market Perform recommendation, according to their opinion released on February 04. Analysts at Telsey Advisory Group downgraded the company stock to a Market Perform call from its previous Outperform stance, in a flash note that dated back to February 03.

Let’s take a glimpse at some insider activity at American Eagle Outfitters, Inc. (NYSE:AEO) and observe the pattern. The earliest insider trade happened on 05/06/2019. Foyle Jennifer M. parted with a total of 117.05 thousand shares of the firm at average share price of $23.53. The total amount for the sale was set at $2.75 million. On completing this exchange, the Global Brand President-aerie account balance was 63.69 thousand shares. The stock lost -36.85 percent from that insider sale. On 04/24/2019, Kessler Charles F, Global Brand President-AE, did a sale of 3.57 thousand shares at a price of $23 per share. This got rid of 82.18 thousand shares from the insider’s fortune and the stock experienced a -35.39 percent retreat in price since the news became public. This exchange saw 132.62 thousand shares get out from the Global Brand President-AE account. On 03/18/2019, EVP & Chief Commercial Officer McLean Andrew J. recorded a sale transaction valued at $315.32 thousand. The sale at $20.75 a share has eliminated 15.2 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed -28.39 percent decrease since the transaction reporting date. The company insider is left with 14.98 thousand shares remaining in the account. McLean Andrew J., who works as EVP & Chief Commercial Officer at the company, performed a sale of 14.98 thousand shares in a transaction worth $273.61 thousand. The disposal recorded on 12/14/2018 was priced at $18.26 per share. The stock price plunged -18.62 percent since the transaction. McLean Andrew J. currently holds a stake of 14.98 thousand in AEO stock which is worth $222.51 thousand after the insider selling.

American Eagle Outfitters, Inc. (AEO) is most likely going to rise 9.56 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $21 as 12-month high price target. This represents a whopping 41.41 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $16, which means a return possibility of 7.74 percent in comparison with the closing price of the stock of $14.85 in recent trading session. The lowest price set for the stock is $11 which is just above -25.93 percent from AEO share’s price at the end of session.

The stock is lingering around the initial support level of $14.21. After this, the following support is at the zone of $13.97. Up until the time the AEO stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 54.19 on the daily chart, and this may be a cause for concern. In case the price goes below $13.97 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $14.74 level may cause a pull-back move approaching $15.03 mark.

In the recent trading session, American Eagle Outfitters, Inc. (NYSE:AEO) shares gained 2.73% or 0.39 points to reach at $14.85 with a thin trading volume of 1.539 million shares. It opened the trading session at $14.66, the shares rose to $14.78 and dropped to $14.25, the range by which the price of stock traded the whole session. The company now has a market cap of $2.5 billion and currently has 172.55 million outstanding shares. American Eagle Outfitters, Inc. (AEO) stock has accumulated 0.49 percent of market value in 21 trading days.

AEO stock’s trailing 3-year beta is 0.84, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was $1.52 share in the trailing 52 weeks. The stock’s value fallen -1.63 percent year to date (YTD) compared to a decline of -32.11 percent in 52 week’s period. The firm’s shares are still trading -38.87 percent below its 1-year high of $24.30 and 8.75 percent up from 52-week low of $13.66. The average consensus ranking on the company is 2.6, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

American Eagle Outfitters, Inc. (AEO) shares are trading at a P/E ratio of 9.5 times earnings posted in the trailing 12 months. The industry AEO deals with has an average P/E of 22.75. Its P/B ratio is standing at 1.77X compared to the 9.93 industry average. It is additionally sporting a 0.62 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.02. American Eagle Outfitters, Inc. has a 36.5% gross profit margin, with its operating margin around 7.9%. Alongside this, the company’s net profit margin currently stands at 6.2%.

Past records have indicated that shares in American Eagle Outfitters, Inc. declined on 22 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of AEO’s Q4 earnings on March 04. Analysts are predicting revenue to climb 1.8 percent to $1.27B in the financial fourth quarter, while EPS will soar by about -16.28 percent to $0.36 per share. In the last quarter, it’s earnings of $0.48 per share came better than the $0.35575, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $1.24B, missing the $1.26B analysts had expected. Earnings are seen to rise by 38 percent this year, -0.61 percent in the coming year and the trend continues by 1.08 percent every year in the next 5 years.