American Eagle Outfitters (NYSE:AEO) Sets New 52-Week Low – Should You Sell?

American Eagle Outfitters, Inc. (NYSE:AEO)’s share price hit a new 52-week low during mid-day trading on Monday . The company traded as low as $16.20 and last traded at $16.20, with a volume of 14847 shares changing hands. The stock had previously closed at $16.46.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on the stock. Bank of America reduced their price target on shares of American Eagle Outfitters from $25.00 to $21.00 and set a “neutral” rating on the stock in a research report on Thursday, December 5th. BMO Capital Markets decreased their target price on American Eagle Outfitters from $22.00 to $20.00 and set a “market perform” rating for the company in a research report on Thursday, December 5th. JPMorgan Chase & Co. reiterated a “neutral” rating and issued a $23.00 price target (down from $27.00) on shares of American Eagle Outfitters in a report on Wednesday, December 4th. UBS Group reduced their price objective on American Eagle Outfitters from $34.00 to $32.00 and set a “buy” rating on the stock in a research note on Thursday, December 5th. Finally, Raymond James assumed coverage on shares of American Eagle Outfitters in a report on Friday, December 13th. They set a “market perform” rating on the stock. One research analyst has rated the stock with a sell rating, nine have given a hold rating and two have given a buy rating to the company. According to MarketBeat, American Eagle Outfitters currently has a consensus rating of “Hold” and a consensus target price of $22.40.

American Eagle Outfitters Stock Performance

The firm has a market cap of $3.20 billion, a price-to-earnings ratio of 14.25, a PEG ratio of 1.12 and a beta of 1.51. The stock’s fifty day moving average is $18.23 and its two-hundred day moving average is $19.82.

American Eagle Outfitters (NYSE:AEO) last posted its earnings results on Wednesday, December 4th. The apparel retailer reported $0.48 EPS for the quarter, topping the consensus estimate of $0.46 by $0.02. The firm had revenue of $1.29 billion during the quarter, compared to analysts’ expectations of $1.30 billion. American Eagle Outfitters had a net margin of 4.28% and a return on equity of 20.75%. American Eagle Outfitters’s quarterly revenue was down .9% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.49 EPS. Sell-side analysts predict that American Eagle Outfitters, Inc. will post 1.69 earnings per share for the current year.

American Eagle Outfitters Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, January 24th. Stockholders of record on Friday, January 10th will be paid a $0.125 dividend. The ex-dividend date of this dividend is Friday, January 10th. This represents a $0.50 annualized dividend and a dividend yield of 3.00%. American Eagle Outfitters’s payout ratio is 42.74%.

Insider Activity at American Eagle Outfitters

In other American Eagle Outfitters news, Director Cary D. Mcmillan sold 2,283 shares of the firm’s stock in a transaction dated Wednesday, October 16th. The shares were sold at an average price of $21.49, for a total transaction of $49,061.67. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Company insiders own 7.30% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in AEO. Wellington Management Group LLP lifted its position in American Eagle Outfitters by 2.8% in the third quarter. Wellington Management Group LLP now owns 9,749,561 shares of the apparel retailer’s stock worth $218,293,000 after purchasing an additional 268,326 shares during the period. Congress Asset Management Co. bought a new position in American Eagle Outfitters during the third quarter valued at about $119,691,000. American Century Companies Inc. grew its holdings in American Eagle Outfitters by 18.1% during the second quarter. American Century Companies Inc. now owns 4,472,073 shares of the apparel retailer’s stock worth $89,263,000 after acquiring an additional 684,420 shares during the period. Victory Capital Management Inc. raised its position in American Eagle Outfitters by 40.6% in the third quarter. Victory Capital Management Inc. now owns 4,370,626 shares of the apparel retailer’s stock worth $97,858,000 after acquiring an additional 1,262,693 shares in the last quarter. Finally, Jupiter Asset Management Ltd. lifted its holdings in American Eagle Outfitters by 36.4% in the 2nd quarter. Jupiter Asset Management Ltd. now owns 3,242,838 shares of the apparel retailer’s stock valued at $64,727,000 after acquiring an additional 865,355 shares during the last quarter. 97.33% of the stock is currently owned by institutional investors.

About American Eagle Outfitters

American Eagle Outfitters, Inc operates as a multi-brand specialty retailer in the United States and internationally. The company provides jeans, apparel and accessories, and personal care products for women and men under the American Eagle brand; and intimates, apparel, activewear, and swim collections under the Aerie and OFFLINE by Aerie brands.