The apparel retail industry is one of many that has been negatively impacted by the COVID-19 pandemic, causing many investors to adjust their holdings. One institutional investor, First Trust Advisors LP, recently sold 1,004,949 shares of American Eagle Outfitters (NYSE:AEO), representing a 63.2% decrease in its holdings. This brought the company’s stake down to 0.31%, with a total value of $8,153,000 at the end of the quarter.
Despite this change in ownership, American Eagle Outfitters recently reported its quarterly earnings data for Q1 on May 24th. The company announced earnings per share (EPS) of $0.17 for the quarter which was in line with the consensus estimate of $0.17 EPS provided by analysts. The firm had revenue of $1.08 billion for the quarter compared to an estimated revenue of $1.07 billion by market experts, showcasing a growth rate of 2.5% compared to last year’s results.
Additionally, Michael Rempell — Executive Vice President (EVP) — has made several transactions involving AEO stocks in recent months; selling over 21 thousand shares totaling more than $318 thousand netting him around $2 million as he still owns around 172 thousand shares directly worth at around almost $2 and a half million dollars.
Overall, analysts predict that AEO will continue to showcase steady growth with an anticipated earnings-per-share figure set at around $1.12 for FY2021 thus giving investment opportunities some positive outlook going forward into what already seems to have been a volatile year across all industries inclusive of finance and retail alike amidst COVID-19 induced uncertainty and upheaval in customer behaviour and spending patterns worldwide .
Mixed Reviews and Insider Selling Plague American Eagle Outfitters
American Eagle Outfitters, Inc. (AEO), a leading apparel retailer, is currently experiencing mixed reviews from experts and insiders alike. While the company’s shares opened at $10.63 on Friday, May 26th, it has a market capitalization of $2.10 billion and a P/E ratio of 17.15, along with a quick ratio of 0.67, current ratio of 1.43 and debt-to-equity ratio of 0.01.
Recent SEC filings show that EVP Michael Rempell sold over 20,000 shares in the company over the past few months totaling approximately $319,000. This follows reports that hedge funds and institutional investors continue to add or reduce their stakes in AEO – BlackRock Inc., Vanguard Group Inc., Cooke & Bieler LP, Dimensional Fund Advisors LP and State Street Corp combined own 93.34% of the company’s stock.
Several equities analysts have recently weighed in on AEO’s stock with varying predictions for its future performance. Deutsche Bank Aktiengesellschaft reduced its price target on AEO from $17 down to $14 while Barclays lowered its target price from $13 down to $11- both reflecting an anticipated dip in future earnings.
While Citigroup downgraded AEO from hold to sell status after reducing its price target from $17 down to just $14 earlier this year; UBS Group disagreed with the negative evaluations by decreasing their target price only slightly from $22 down to $19 but maintaining a “buy” rating on the stock.
It appears that good news is harder to come by for American Eagle Outfitters as recent fluctuations in stock prices along with insider selling offers little comfort for concerned investors waiting for positive momentum shifts within this industry.
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