How Does American Eagle Outfitters, Inc. (AEO) Stack Up For Investors?

On Tuesday, shares of American Eagle Outfitters, Inc. (NYSE:AEO) marked $16.38 per share versus a previous $15.54 closing price. With having a 5.41% gain, an insight into the fundamental values of American Eagle Outfitters, Inc., investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. AEO showed a fall of -15.26% within its YTD performance, with highs and lows between $15.39 – $29.88 during the period of 52 weeks, compared to the simple moving average of -17.72% in the period of the last 200 days.

Telsey Advisory Group equity researchers changed the status of American Eagle Outfitters, Inc. (NYSE: AEO) shares to a “Outperform” rating in the report published on June 5th, 2019. Other analysts, including Wedbush , also published their reports on AEO shares. Wedbush repeated the rating from the previous report, marking AEO under “Neutral” rating, in the report published on May 9th, 2019. Additionally, AEO shares got another “Sector Perform” rating from RBC Capital Mkts, setting a target price of $24 on the company’s shares, according to the report published in May 9th, 2019. On December 12th, 2018, Wolfe Research Reiterated an Peer Perform rating and increased its price target from $27 to $22. On the other hand, Telsey Advisory Group Reiterated the “Outperform” rating for AEO shares, as published in the report on December 12th, 2018. Deutsche Bank seems to be going bullish on the price of AEO shares, based on the price prediction for AEO, indicating that the shares will jump to $24, giving the shares “Buy” rating based on their report from November 26th, 2018. Another “Underperform” rating came from BofA/Merrill.

American Eagle Outfitters, Inc. (AEO) Analysis

The present dividend yield for AEO owners is set at 0.03, marking the return investors will get regardless of the company’s performance in the upcoming period.However, in order for the company to be able to pay its dividends, just like it is the case with American Eagle Outfitters, Inc., the company needs to provide a healthy cash flow, currently at the value of 18.24. In addition, the growth of sales from quarter to quarter is recording 7.70%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of American Eagle Outfitters, Inc. (AEO) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of 20.70% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 0.80 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while AEO is currently recording an average of 4.59M in volumes. The volatility of the stock on monthly basis is set at 4.32%, while the weekly volatility levels are marked at 4.98%with 0.49% of gain in the last seven days. Additionally, long-term investors are predicting the target price of $23.93, indicating growth from the present price of $16.38, which can represent yet another valuable research and analysis points that can help you decide whether to invest in AEO or pass.

What to Look for When Analyzing American Eagle Outfitters, Inc. Shares?

American Eagle Outfitters, Inc. (AEO) is based in the USA and it represents one of the well-known company operating with Services sector. If you wish to compare AEO shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of 11.05 for American Eagle Outfitters, Inc., while the value 9.45 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value 1.48 is supported by the yearly ESP growth of 38.00%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 0.90%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 94.40% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in AEO Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in AEO in the recent period. That is how Dimensional Fund Advisors LP now has an increase position in AEO by 1.81% in the first quarter, owning 7.66 million shares of AEO stocks, with the value of $135.59 million after the purchase of an additional 136,378 shares during the last quarter. In the meanwhile, Renaissance Technologies LLC also increased their stake in AEO shares changed 59.39% in the first quarter, which means that the company now owns 4.46 million shares of company, all valued at $78.95 million after the acquisition of additional 1,663,000 shares during the last quarter.

Arrowstreet Capital LP acquired a new position in American Eagle Outfitters, Inc. during the first quarter, with the value of $62.69 million, and Northern Trust Investments, Inc. increased their stake in the company’s shares by 4.98% in the first quarter, now owning 157,561 shares valued at $58.78 million after the acquisition of the additional 3.32 million shares during the last quarter. At the present, 94.40% of AEO shares are in the ownership of institutional investors.