American Eagle Outfitters Inc. (NYSE:AEO) finished Wednesday with an addition of $0.38 to close at $15.83, an upside of 2.46 percent. An average of 4,351,620 shares of common stock have been traded in the last five days. There was a fall of -$0.02 in the past week, and it reached a new high 13 times over the past 12 months. The last 20 days have seen an average of 4,234,415 shares traded, while the 50-day average volume stands at 4,084,286.
AEO stock has increased by 20.11% in the last month. The company shares reached their 1-month lowest point of $12.91 on 07/24/23. With the stock rallying to its 52-week high on 02/02/23, shares of the company touched a low of $9.46 and a high of $17.09 in 52 weeks. It has reached a new high 8 times so far this year and achieved 13.40% or $1.87 in price. In spite of this, the price is down -7.37% 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 136 days ago on Apr 10. In this transaction, the insider spent $40,233. EVP, Chief Operations Officer, Rempell Michael R, disposed of 5,761 shares at a price of $13.33 on Mar 31. The insider now owns more than $76,794 worth of shares. Prior to that, EVP, Chief Operations Officer Rempell Michael R went on to Sale 12,510 shares at $13.13 each on Mar 27. An amount of $164,256 was transacted.
Valuation Metrics
American Eagle Outfitters Inc. (AEO) has a trailing price-to-earnings (P/E) ratio of 28.89. The stock’s beta is 1.50. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.61, the price-to-book (PB) ratio at 1.90, and the price-to-cash flow ratio at 11.91.
The company has a payout ratio of 65.40%. The company’s most recent quarterly dividend payment was $0.10 a share, without any change from last year. Its latest decrease dividend $0.08 reported on Tuesday February 28 2023.
Financial Health
The quick ratio of American Eagle Outfitters Inc. for the three months ended April 29 was 0.70, and the current ratio was 1.60, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.02 and a total debt to equity ratio of 0.02 for the quarter ending April 29. American Eagle Outfitters Inc.’s EBITDA margin for the year ending April 29 is 9.75%, while its operating margin for the same period stands at 4.50%. Its gross profit as reported stood at $1.75 billion compared to revenue of $4.99 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 3.20%.
Earnings Surprise
For the three-month period that ended April 29, American Eagle Outfitters Inc. had $30.23 million in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $18.45 million in the quarter, while revenues of $54.59 million were shrunk -72.03%. The analyst consensus anticipated American Eagle Outfitters Inc.’s latest quarter earnings to come in at $0.17 per share, but it turned out to be $0.17, a 0.00% surprise. For the quarter, EBITDA amounted to $80.76 million. Shareholders own equity worth $197.45 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 23 August was 64.03%, suggesting the stock is Neutral, with historical volatility in this time frame at 26.42%.
As of today, AEO’s price is $15.74 -0.13% or -$0.02 from its 5-day moving average. AEO is currently trading +15.89% higher than its 20-day SMA and +20.20% higher than its 100-day SMA. However, the stock’s current price level is +34.95% above the SMA50 and +46.03% above the SMA200.
The stochastic %K and %D were 72.23% and 75.93%, respectively, and the average true range (ATR) was 0.49. With the 14-day stochastic at 72.43% and the average true range at 0.48, the RSI (14) stands at 67.33%. The stock has reached -0.05 on the 9-day MACD Oscillator while the 14-day reading was at 0.10.
Analyst Ratings
Barclays upgraded American Eagle Outfitters Inc. (NYSE: AEO) to a an Overweight rating in its most recent analyst report. Previously, the stock was rated as an Equal weight.
