American Eagle Outfitters Target of Unusually High Options Trading (NYSE:AEO)
by Doug Wharley · The Cerbat GemAmerican Eagle Outfitters, Inc. (NYSE:AEO – Get Free Report) was the target of some unusual options trading activity on Thursday. Investors acquired 77,823 call options on the stock. This represents an increase of 295% compared to the average volume of 19,702 call options.
American Eagle Outfitters Stock Up 2.4%
Shares of AEO stock traded up $0.66 during trading on Thursday, reaching $27.83. The company’s stock had a trading volume of 1,869,484 shares, compared to its average volume of 5,029,319. American Eagle Outfitters has a one year low of $9.27 and a one year high of $28.46. The business has a fifty day moving average price of $22.26 and a 200-day moving average price of $16.81. The company has a market cap of $4.72 billion, a price-to-earnings ratio of 24.11 and a beta of 1.39. The company has a quick ratio of 0.59, a current ratio of 1.63 and a debt-to-equity ratio of 0.13.
American Eagle Outfitters (NYSE:AEO – Get Free Report) last issued its quarterly earnings results on Tuesday, December 2nd. The apparel retailer reported $0.53 EPS for the quarter, topping the consensus estimate of $0.43 by $0.10. The firm had revenue of $1.36 billion for the quarter, compared to analysts’ expectations of $1.32 billion. American Eagle Outfitters had a net margin of 3.90% and a return on equity of 13.82%. The company’s revenue for the quarter was up 2.9% on a year-over-year basis. During the same period in the previous year, the firm posted $0.48 EPS. Analysts anticipate that American Eagle Outfitters will post 1.7 earnings per share for the current year.
American Eagle Outfitters Announces Dividend
The business also recently declared a quarterly dividend, which will be paid on Friday, January 23rd. Shareholders of record on Friday, January 9th will be given a dividend of $0.125 per share. The ex-dividend date of this dividend is Friday, January 9th. This represents a $0.50 annualized dividend and a dividend yield of 1.8%. American Eagle Outfitters’s payout ratio is 43.10%.
Analyst Upgrades and Downgrades
A number of brokerages recently weighed in on AEO. Cowen reiterated a “hold” rating on shares of American Eagle Outfitters in a research report on Wednesday, December 3rd. JPMorgan Chase & Co. raised shares of American Eagle Outfitters from an “underweight” rating to a “neutral” rating and upped their target price for the company from $14.00 to $20.00 in a research note on Wednesday, December 3rd. Citigroup lifted their price target on shares of American Eagle Outfitters from $18.00 to $23.00 and gave the stock a “neutral” rating in a research report on Wednesday, December 3rd. Wall Street Zen upgraded shares of American Eagle Outfitters from a “hold” rating to a “buy” rating in a research report on Saturday, September 13th. Finally, BTIG Research initiated coverage on American Eagle Outfitters in a report on Thursday, September 18th. They set a “neutral” rating on the stock. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, eleven have issued a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $22.18.
Read Our Latest Stock Report on AEO
Insider Transactions at American Eagle Outfitters
In other American Eagle Outfitters news, insider Jennifer M. Foyle sold 243,047 shares of the stock in a transaction dated Friday, December 5th. The stock was sold at an average price of $24.30, for a total value of $5,906,042.10. Following the transaction, the insider owned 191,751 shares of the company’s stock, valued at approximately $4,659,549.30. This represents a 55.90% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 8.70% of the company’s stock.
Hedge Funds Weigh In On American Eagle Outfitters
Institutional investors have recently added to or reduced their stakes in the company. Strategic Investment Solutions Inc. IL lifted its stake in shares of American Eagle Outfitters by 50.0% in the 3rd quarter. Strategic Investment Solutions Inc. IL now owns 1,500 shares of the apparel retailer’s stock valued at $26,000 after purchasing an additional 500 shares during the period. Raymond James Financial Inc. acquired a new position in American Eagle Outfitters in the second quarter valued at approximately $35,000. Strs Ohio bought a new position in shares of American Eagle Outfitters during the 3rd quarter worth approximately $36,000. Federated Hermes Inc. grew its position in shares of American Eagle Outfitters by 151.0% during the 2nd quarter. Federated Hermes Inc. now owns 3,848 shares of the apparel retailer’s stock worth $37,000 after buying an additional 2,315 shares during the period. Finally, McIlrath & Eck LLC bought a new stake in shares of American Eagle Outfitters in the 3rd quarter valued at $39,000. 97.33% of the stock is currently owned by institutional investors and hedge funds.
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.