American Eagle Outfitters, Inc. (NYSE:AEO) grew as high as $21 on Wednesday before closing at $20.56. The -1.44 percent plunge dragged its market cap to $3.67B. The shares went down as low as $20.09 before recovering. Trading activity significantly improved as the volume at ready counter increased to 3,916,899 shares versus 2,925,895 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 3,603,423 shares. The stock is now 20.94% above against its bear-market low of $17 on December 24, 2018. It has retreated -45.33% since it’s 52-week high of $29.88 reached in August. Now the market price is up 18.16% on the year and up 6.36% YTD.
AEO’s 50 day simple moving average (SMA 50) price is $19.86 and its 200-day simple moving average (SMA 200) price is $22.59. The company’s stock currently has a total float of 166.44M shares. Its weekly volatility is hovering around 2.76% and felt 2.68% volatility in price over a month. On the upside, the share price will test short term resistance at around $21.01. On a downside, the stock is likely to find some support, which begins at $20.1. The failure to get near-term support could push it to $19.64.
Separately, it has been reported that multiple insider activity took place at American Eagle Outfitters, Inc. (AEO). EVP & Chief Commercial Officer Mclean Andrew J. sold 14,984 shares for $14,984 in transaction occurred on 2018/12/14. After making this transaction, the EVP & Chief Commercial Officer owns a direct stake of 273,608 shares, worth $308,071, as per the last closing price. On 2018/09/06 Mcmillan Cary D, Director at AEO, dumped 16,993 shares at an average price of $24.87 per share. The selling total is valued at $.
Global Brand President-AE, Kessler Charles F had divested 10,000 shares for $110,079 through a trade on 2018/08/14. Following this activity, the insider holds 280,000 shares worth $2,263,224 as of recent close. Wall Street’s most bullish American Eagle Outfitters, Inc. (NYSE:AEO) analysts are predicting the share price to blow past $29 per share during the next 12 months. The current median share price forecast by them is $25, suggesting that the stock could increase 21.6% in that time frame. The average price target of $24.29 calls for a nearly 18.14% increase in the stock price.
It had seen a change in price target from analysts at Wolfe Research, who reiterated the stock at Peer Perform on December 12 but moved PT from $27 to $22. Analysts at Telsey Advisory Group, maintained the company shares at Outperform on December 12 but switched target price from $32 to $24. The stock won favor of Deutsche Bank analysts who expressed their confidence in it using an upgrade from Hold to Buy on November 26.
When looking at valuations, American Eagle Outfitters, Inc. (AEO) has a cheap P/E of 13x as compared to industry average of 34.88x. Moreover, it trades for 12.59 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 2.81x price/book and 0.91x price/sales. Compared to others, American Eagle Outfitters, Inc. is in a different league with regards to profitability, having net margins of 7%. To put some perspective around this, the industry’s average net margin is 3.43%. AEO’s ROE is 22.3%, which is also considerably better than the industry’s ROE of 12.12%. It’s also very liquid in the near term, with a current ratio of 1.9. The stock has a debt/capital of 0.
Shares of American Eagle Outfitters, Inc. (AEO) have gained 9.6% since the company’s last earnings report. Over the past 12 fiscal quarters, American Eagle Outfitters, Inc. (NYSE:AEO) has topped consensus earnings estimates in 8 quarters (66%), missed earnings in 2 quarters (16%), whereas at 2 occasion EPS met analyst expectations. AEO last reported earnings on December 11, 2018 when it released Oct-18 results that receded expectations. The company raked in $0.48 per share, -44.19% change on the same period last year. That was worse than consensus for $0.48. Revenue for the recent quarter stood at $1 billion, up 5% on last year and below the $1.02 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $849.6 million to $894.52 million, which should be compared with $811.73 million generated last year. EPS is seen in a range of $0.19 to $0.27, against the $0.18 reported a year ago.