American Eagle Outfitters Inc. (NYSE:AEO) marked $15.41 per share on Wednesday, up from a previous closing price of $15.39. While American Eagle Outfitters Inc. has overperformed by 0.13%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, AEO rose by 22.01%, with highs and lows ranging from $17.09 to $9.46, whereas the simple moving average jumped by 14.02% in the last 200 days.
On August 01, 2023, Barclays Upgraded American Eagle Outfitters Inc. (NYSE: AEO) to Overweight.
Analysis of American Eagle Outfitters Inc. (AEO)
AEO currently pays a dividend of $0.40 per share, which means investors will get a return regardless of the company’s performance over the next few months. Further, the quarter-over-quarter increase in sales is 2.50%, showing a positive trend in the upcoming months.
In order to gain a clear picture of American Eagle Outfitters Inc.’s future performance, a variety of well-rounded analysis and research techniques can be applied, with equity being the most critical. The goal here is to ensure that your current return on equity of 7.40% is sufficient for you to turn a profit off your investment. Taking into account the quick ratio of the company, currently set at 0.70, you can see that the company can cover any debts it may have, which can easily be seen in the annual report of the company.
An average volume of 4.92M can be a very valuable indicator of volatility for AEO stock. On a monthly basis, the volatility of the stock is set at 3.51%, whereas on a weekly basis, it is put at 4.16%, with a gain of 6.79% over the past seven days. Furthermore, long-term investors anticipate a median target price of $14.50, showing decline from the present price of $15.41, which can serve as yet another indication of whether AEO is worth investing in or should be passed over.
How Do You Analyze American Eagle Outfitters Inc. Shares?
The USA based company American Eagle Outfitters Inc. (AEO) is one of the biggest names in Apparel Retail. When comparing American Eagle Outfitters Inc. shares with other companies under Consumer Cyclical, the P/E value is an influential factor to note. This is because it represents an indication of the future growth of the company in terms of investors’ expectations. Ultimately, the value of the latter should demonstrate steady, rapid growth, which is an accurate measure of the company’s progress. In addition to the value of 28.12, there is a growth in quarterly earnings of -35.20%.
In addition to the fundamentals, you should also consider how many employees own shares in the company. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 0.20%. This can enable you to see the extent to which executives own the company’s stock. As opposed to executive stock, institutional ownership accounts for 93.11% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.
Are institutional investors increasing their holdings in AEO shares?
The recent increase in stakes in AEO appears to be a result of several institutional investors and hedge funds increasing their positions. BlackRock Fund Advisors’s position in AEO has decreased by -1.77% in the first quarter. The company now owns 26,003,866 shares of the stock, with a value of $306.85 million, following the sale of -467,979 additional shares during the last quarter. Fidelity Management & Research Co made another decreased to its shares in AEO during the first quarter, downing its stake by -3.83%. During the last quarter, the company picked up -994,895 additional shares for a total stake of worth $295.1 million, bringing number of shares owned by the company to 25,008,882.
During the first quarter, The Vanguard Group, Inc. added a 273,706 position in AEO. Dimensional Fund Advisors LP purchased an additional 1.91 million shares in the last quarter, increasing its holdings by 26.15%, now holding 9.23 million shares worth $108.93 million. At the end of the first quarter, Cooke & Bieler LP decreased its AEO holdings by -1.25% and now holds 7.97 million AEO shares valued at $94.01 million with the lessened -0.1 million shares during the period. AEO shares are owned by institutional investors to the tune of 93.11% at present.