American Eagle Outfitters, Inc. (NYSE:AEO) is in the list of top stocks to trade today as the company shares are trading 3.46% or 0.59 points up from last closing price of $17.07, reaching $17.66 at last check. The AEO share price has risen in 3 of the last 5 days and is down -18.71% over the past week. It will be exciting to see whether the stock manages to continue increasing or take a minor break for the next few days. The move came on weak volume too with far less shares changing hands than in a normal session. Trading activity as of this writing weakened by -4,608,765 shares, and in total 4.556 million shares valued at $80.454 million were seen changing hands compared with 9.165 million shares valued at $156.438 million recorded at the previous session. You should take into consideration that a falling volume on higher prices causes divergence and may be an early warning about possible changes in AEO stock for the next couple of days.
American Eagle Outfitters, Inc. (AEO) shares have notched a 3-month decline of about -18.71%, but has still tumbled -11.69% year to date. By comparison, the stock sank -30.35% over the past 12 months, while it slipped -16.85% over the 1 month. The company’s market cap is around $2.95B, with its short interest ratio standing at 3.69%.
In the current trading session for AEO, the stock witnessed two major price actions, it rose to a high of $17.72 and was down as much as $17.05 at one point. The high recorded is very low when compared to their 52-week high which is $16.31. The 52-week high is now at -40.88 distance from current price. Their recent low of $29.88 represents a 8.31% recovery. This data is quite important for investors who look to benefit from the recent rise of the company’s stock. The price target currently for AEO is $24.86, this is below the recent high that the stock attained. Taking a look at the overall sentimental views of financial analysts, the trading pattern of this stock recently is very clear.
The stock of American Eagle Outfitters, Inc. earned $1.48 per share in the trailing 12 months and has a P/E ratio of 11.93. You can compare it with that of similar companies in its industry to get a sense of whether the stock you’re looking to purchase is overvalued or undervalued. Its current price to earnings ratio is lower than the ones recorded by the industry which is 34.76 and lower compared to the sector’s average of 19.34. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. AEO also has P/S multiple of 0.74. This is smaller versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 2.3x.
The company recorded an interesting insider sale transaction by the Insider on May 06, 2019. A Securities and Exchanges Commission filings show that Jennifer M Foyle sold a total of 117,051 AEO shares that day for a sum of around $2,754,210. The filings show that the insider now retains 144,228 shares, currently worth $2,547,066. American Eagle Outfitters, Inc. (AEO) insiders have acquired 3,392 shares in the stock within the past three months. The total insider sales reported to the SEC in that time frame amounted to 214,853 shares. In total, individual insiders traded 218,245 shares in the business, which makes up 14.112% of 1,546,547 shares that were traded over a year. In the past 12 months, insiders have purchased 162,337 shares while the seller parted with 1,384,210 shares.
AEO‘s last price was down -16.76% as compared to the average trading price of 50 days recorded at $21.22 while enlarging the period to 200 trading days, the average closing price was $20.77. At present, there are 172.66 million in the total number of common shares owned by the public and among those 161.16 million shares have been available to trade. The percentage of shares being held by the company management was 0.9% while institutions stake was 93.7%. The company has generated positive returns on equity over the last 12 months (20.7%). It managed to keep its gross profit margin at 36.8% over the past 12 months.
When assessing the full upside of the AEO stock, there is another set of technicals that should be looked into and considered. Its -3.19% decline from moving average of $18.24 has brought about a negative sentiment when calculated over the last 20 days. The market has allocated a beta of 1.05 to the stock. With the beta been greater than one, this implies that the company shares are theoretically more volatile than the market, something that the traders definitely are keeping an eye on.
Most of the analysts surveyed by Thomson/First Call think quite highly of American Eagle Outfitters, Inc. — 6 analysts rate the stock as a buy with another 0 rating it strong buy. There are 2 analysts who maintain a hold rating for the stock, with 1 giving it a sell rating. Analysts arrived at a 12-month price target of $23.9 on shares of American Eagle Outfitters, Inc. (NYSE:AEO), which corresponds to 35.56% upside potential than its current market price of $17.66 and implies potential despite the recent advance in the price. However, their current target price has fallen from $24.6667 a month ago and is down handily from the consensus target of $24.6667 a quarter ago.
In the last five years, the EPS of the company has been roughly 28.1%. Though the percentage looks encouraging, extra tailwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will increase annually by 6.72%. The revenue of the company has risen at an average annualized rate of about 4.1 over the last five years. The company recently recorded an increase of 7.7%, but this figure is rather unattractive.
Let’s briefly check the hedge fund interest towards AEO stock. Hellman Jordan Management Co. Inc. MA added position in the company after it grew 50% or 17,000 shares of its common stock. The hedge fund now owns 25,500 shares worth $450,330, SEC documents show. Marshall Wace LLP shored up assets in the stock as 5944.67 shares have been purchased, increasing its stake by 50% to 8,917 shares which are currently valued at $157,474. In addition, Advisory Services Network LLC recently reported that it now owns 1,354 shares making a total of $23,912 based on the recent price. This refelects a change of 50% in their ownership.