How American Eagle Outfitters Inc. (AEO) Works From A Technical Perspective

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American Eagle Outfitters Inc. (NYSE:AEO) finished Thursday with an addition of $0.01 to close at $13.99, an upside of 0.07 percent. An average of 3,173,900 shares of common stock have been traded in the last five days. There was a fall of -$0.35 in the past week, and it reached a new high 1 time over the past 12 months. The last 20 days have seen an average of 4,384,085 shares traded, while the 50-day average volume stands at 5,079,798.

AEO stock has decreased by -10.89% in the last month. The company shares reached their 1-month lowest point of $13.83 on 12/28/22. With the stock rallying to its 52-week high on 01/03/22, shares of the company touched a low of $9.46 and a high of $26.33 in 52 weeks. It has reached a new high 1 time so far this year and lost -44.75% or -$11.33 in price. In spite of this, the price is down -46.87% from the 52-week high.


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Insider Transactions

AEO stock investors should be aware that American Eagle Outfitters Inc. (AEO) stock had its last reported insider trading activity 255 days ago on Jul 22. In this transaction, the insider spent $449,244. EVP & Chief Commercial Officer, McLean Andrew J., disposed of 6,915 shares at a price of $17.40 on Apr 18. The insider now owns more than $120,321 worth of shares. Prior to that, EVP, Chief Operations Officer Rempell Michael R went on to Sale 12,895 shares at $19.12 each on Mar 18. An amount of $246,552 was transacted.

Valuation Metrics

American Eagle Outfitters Inc. (AEO) has a trailing price-to-earnings (P/E) ratio of 24.54. The stock’s beta is 1.39. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.52, the price-to-book (PB) ratio at 1.78.

Financial Health

The quick ratio of American Eagle Outfitters Inc. for the three months ended October 30 was 0.70, and the current ratio was 1.90, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.28 and a total debt to equity ratio of 0.28 for the quarter ending October 30. Its gross profit as reported stood at $1.99 billion compared to revenue of $5.01 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, American Eagle Outfitters Inc.’s return on assets was 3.30%.

Earnings Surprise

For the three-month period that ended October 30, American Eagle Outfitters Inc. had $411.91 million in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $81.27 million in the quarter, while revenues of -$42.47 million were shrunk -87.3%. The analyst consensus anticipated American Eagle Outfitters Inc.’s latest quarter earnings to come in at $0.22 per share, but it turned out to be $0.42, a 90.90% surprise. For the quarter, EBITDA amounted to $169.95 million. Shareholders own equity worth $187.41 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at American Eagle Outfitters Inc. (AEO) price momentum. RSI 9-day as of the close on 29 December was 35.08%, suggesting the stock is Neutral, with historical volatility in this time frame at 21.84%.

As of today, AEO’s price is $14.22 -2.44% or -$0.35 from its 5-day moving average. AEO is currently trading -11.57% lower than its 20-day SMA and +10.77% higher than its 100-day SMA. However, the stock’s current price level is +36.62% above the SMA50 and -22.54% below the SMA200.

The stochastic %K and %D were 6.06% and 12.73%, respectively, and the average true range (ATR) was 0.57. With the 14-day stochastic at 5.93% and the average true range at 0.61, the RSI (14) stands at 44.35%. The stock has reached -0.28 on the 9-day MACD Oscillator while the 14-day reading was at -0.68.

Analyst Ratings

Cowen downgraded American Eagle Outfitters Inc. (NYSE: AEO) to a a Market perform rating in its most recent analyst report. Previously, the stock was rated as an Outperform. The consensus rating for American Eagle Outfitters Inc. (AEO) among analysts is Hold. According to current brokerage recommendations, 1 brokerage firm advise that investors sell AEO, while 6 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 3 others rate it as a “buy”.

What is AEO’s price target for the next 12 months?

Analysts predict a range of price targets between $12.00 and $23.00, with a median target of $17.00. Taking a look at these predictions, the average price target given by analysts for American Eagle Outfitters Inc. (AEO) stock is $16.18.

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