Morgan Stanley Has Lowered Expectations for American Eagle Outfitters (NYSE:AEO) Stock Price

American Eagle Outfitters (NYSE:AEO) had its price target lowered by investment analysts at Morgan Stanley from $18.00 to $17.00 in a report released on Thursday, Benzinga reports. The firm currently has an “equal weight” rating on the apparel retailer’s stock. Morgan Stanley’s price target suggests a potential upside of 19.52% from the stock’s current price.

Other analysts have also issued research reports about the company. Weiss Ratings reaffirmed a “hold (c)” rating on shares of American Eagle Outfitters in a report on Thursday, August 27th. Telsey Advisory Group dropped their target price on shares of American Eagle Outfitters from $20.00 to $18.00 and set a “market perform” rating on the stock in a research report on Thursday. William Blair reissued a “buy” rating on shares of American Eagle Outfitters in a report on Wednesday, July 15th. Bank of America restated an “underperform” rating and set a $16.00 price objective on shares of American Eagle Outfitters in a report on Friday, August 14th. Finally, JPMorgan Chase & Co. increased their target price 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. Two equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $19.55.

American Eagle Outfitters Stock Performance

Shares of NYSE AEO traded down $2.67 during trading hours on Thursday, hitting $14.22. 15,760,726 shares of the stock were exchanged, compared to its average volume of 5,455,635. American Eagle Outfitters has a one year low of $14.06 and a one year high of $28.46. The company’s 50 day moving average is $17.01 and its 200 day moving average is $17.63. The company has a debt-to-equity ratio of 0.05, a current ratio of 1.55 and a quick ratio of 0.53. The firm has a market capitalization of $2.38 billion, a P/E ratio of 8.77, a P/E/G ratio of 3.76 and a beta of 1.33.

American Eagle Outfitters (NYSE:AEO) last released its earnings results on Wednesday, September 9th. The apparel retailer reported $0.79 earnings per share for the quarter, topping analysts’ consensus estimates of $0.22 by $0.57. The firm had revenue of $1.38 billion during the quarter, compared to analyst estimates of $1.37 billion. American Eagle Outfitters had a net margin of 5.01% and a return on equity of 20.95%. The business’s revenue was up 7.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.45 EPS. On average, research analysts expect that American Eagle Outfitters will post 1.76 EPS for the current year.

Insider Activity

In other news, Director David Sable sold 5,779 shares of the stock in a transaction on 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 transaction, the director owned 53,481 shares in the company, valued at approximately $921,477.63. This represents a 9.75% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Cary D. Mcmillan sold 2,892 shares of the firm’s stock in a transaction dated Tuesday, July 7th. The stock was 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. In the last 90 days, insiders sold 11,563 shares of company stock worth $196,599. 8.95% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Plato Investment Management Ltd acquired a new stake in American Eagle Outfitters during the second quarter valued at approximately $25,000. Kemnay Advisory Services Inc. bought a new position in shares of American Eagle Outfitters during the 4th quarter worth approximately $31,000. Aster Capital Management DIFC Ltd acquired a new stake in American Eagle Outfitters in the 4th quarter valued at $32,000. Raymond James Financial Inc. acquired a new stake in American Eagle Outfitters in the 2nd quarter valued at $35,000. Finally, Allworth Financial LP bought a new stake in American Eagle Outfitters in the second quarter valued at $36,000. Institutional investors own 97.33% of the company’s stock.

American Eagle Outfitters News Roundup

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

• Positive Sentiment: American Eagle reported second-quarter earnings of $0.79 per share, well above the roughly $0.22 consensus estimate, while revenue increased 7.5% year over year to approximately $1.38 billion, slightly exceeding expectations. American Eagle Outfitters beats quarterly revenue estimates
• Positive Sentiment: Growth was supported by strong demand at Aerie, particularly in intimates, sleepwear and apparel, as well as momentum at the OFFLINE brand. Total comparable sales reportedly rose 6%. American Eagle shares slide as flat margin outlook and weak core brand weigh
• Positive Sentiment: UBS maintained a Buy rating despite reducing its price target to $27 from $31, indicating that some analysts still see substantial long-term upside. Analyst price target update
• Neutral Sentiment: Second-quarter operating income more than doubled, but a significant portion of the improvement came from a $161 million tariff refund. Investors are questioning how much of the earnings growth is recurring. American Eagle profit and gross margin inflated by tariff refunds
• Negative Sentiment: Comparable sales at the core American Eagle brand declined 1% and fell short of expectations, highlighting continued weakness among cautious U.S. consumers despite strength at Aerie. American Eagle stock slumps on weakness at namesake brand
• Negative Sentiment: The company left its annual same-store-sales forecast unchanged and projected flat gross margins for the third quarter. The lack of an outlook upgrade disappointed investors after the earnings beat. American Eagle falls on dismal forecast
• Negative Sentiment: Analysts also trimmed price targets, including Telsey Advisory Group to $18 from $20, reflecting concerns about brand-level demand and margin durability. Analyst price target update

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.