American Eagle Outfitters Inc. (NYSE: AEO)’s stock price has decreased by -0.33 compared to its previous closing price of 24.50. However, the company has seen a -6.79% decrease in its stock price over the last five trading sessions. Zacks Investment Research reported 2024-04-08 that Investors interested in Retail – Apparel and Shoes stocks are likely familiar with American Eagle Outfitters (AEO) and Industria de Diseno Textil SA (IDEXY). But which of these two stocks is more attractive to value investors?
Is It Worth Investing in American Eagle Outfitters Inc. (NYSE: AEO) Right Now?
The price-to-earnings ratio for American Eagle Outfitters Inc. (NYSE: AEO) is above average at 28.37x, Company’s 36-month beta value is 1.58.Analysts have differing opinions on the stock, with 6 analysts rating it as a “buy,” 1 as “overweight,” 10 as “hold,” and 2 as “sell.”
The public float for AEO is 180.92M, and currently, short sellers hold a 11.10% ratio of that floaft. The average trading volume of AEO on April 09, 2024 was 4.55M shares.
AEO’s Market Performance
AEO stock saw an increase of -6.79% in the past week, with a monthly gain of 6.17% and a quarterly increase of 23.08%. The volatility ratio for the week is 2.98%, and the volatility levels for the last 30 days are 3.44% for American Eagle Outfitters Inc. (AEO). The simple moving average for the past 20 days is 0.50% for AEO’s stock, with a 32.73% simple moving average for the past 200 days.
Analysts’ Opinion of AEO
Many brokerage firms have already submitted their reports for AEO stocks, with Telsey Advisory Group repeating the rating for AEO by listing it as a “Market Perform.” The predicted price for AEO in the upcoming period, according to Telsey Advisory Group is $25 based on the research report published on March 08, 2024 of the current year 2024.
Telsey Advisory Group, on the other hand, stated in their research note that they expect to see AEO reach a price target of $22, previously predicting the price at $19. The rating they have provided for AEO stocks is “Market Perform” according to the report published on January 09th, 2024.
BofA Securities gave a rating of “Neutral” to AEO, setting the target price at $19 in the report published on November 15th of the previous year.
AEO Trading at 6.09% from the 50-Day Moving Average
After a stumble in the market that brought AEO to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -7.64% of loss for the given period.
Volatility was left at 3.44%, however, over the last 30 days, the volatility rate increased by 2.98%, as shares surge +9.56% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +20.47% upper at present.
During the last 5 trading sessions, AEO fell by -6.79%, which changed the moving average for the period of 200-days by +109.61% in comparison to the 20-day moving average, which settled at $24.40. In addition, American Eagle Outfitters Inc. saw 15.41% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at AEO starting from MCMILLAN CARY D, who sale 1,908 shares at the price of $24.59 back on Apr 05 ’24. After this action, MCMILLAN CARY D now owns 0 shares of American Eagle Outfitters Inc., valued at $46,927 using the latest closing price.
Foyle Jennifer M., the Global Brand President-aerie of American Eagle Outfitters Inc., sale 16,971 shares at $25.53 during a trade that took place back on Apr 02 ’24, which means that Foyle Jennifer M. is holding 226,497 shares at $433,253 based on the most recent closing price.
Stock Fundamentals for AEO
Current profitability levels for the company are sitting at:
- 0.07 for the present operating margin
- 0.37 for the gross margin
The net margin for American Eagle Outfitters Inc. stands at 0.03. The total capital return value is set at 0.12. Equity return is now at value 10.19, with 4.42 for asset returns.
Based on American Eagle Outfitters Inc. (AEO), the company’s capital structure generated 0.41 points at debt to capital in total, while cash flow to debt ratio is standing at 0.49. The debt to equity ratio resting at 0.68. The interest coverage ratio of the stock is -298.96.
Currently, EBITDA for the company is 603.99 million with net debt to EBITDA at 1.38. When we switch over and look at the enterprise to sales, we see a ratio of 1.07. The receivables turnover for the company is 21.22for trailing twelve months and the total asset turnover is 1.35. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.61.
Conclusion
In a nutshell, American Eagle Outfitters Inc. (AEO) has experienced a better performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
