American Eagle Outfitters Inc (AEO): A Technical Analysis

American Eagle Outfitters Inc (NYSE: AEO) has a higher price-to-earnings ratio of 15.35x compared to its average ratio. AEO has 36-month beta value of 1.51. Analysts have mixed views 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 176.52M, and currently, short sellers hold a 9.25% ratio of that float. The average trading volume of AEO on November 05, 2024 was 4.16M shares.

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AEO) stock’s latest price update

American Eagle Outfitters Inc (NYSE: AEO)’s stock price has gone decline by -1.64 in comparison to its previous close of 19.46, however, the company has experienced a -5.85% decrease in its stock price over the last five trading days. zacks.com reported 2024-11-01 that AEO is set to drive profitability through brand strengthening, operational efficiency and targeted market share expansion.

AEO’s Market Performance

American Eagle Outfitters Inc (AEO) has seen a -5.85% fall in stock performance for the week, with a -13.63% decline in the past month and a -5.99% plunge in the past quarter. The volatility ratio for the week is 2.86%, and the volatility levels for the past 30 days are at 3.10% for AEO. The simple moving average for the past 20 days is -5.81% for AEO’s stock, with a -12.22% 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 $23 based on the research report published on August 30, 2024 of the current year 2024.

JP Morgan, on the other hand, stated in their research note that they expect to see AEO reach a price target of $31. The rating they have provided for AEO stocks is “Overweight” according to the report published on April 09th, 2024.

Telsey Advisory Group gave a rating of “Market Perform” to AEO, setting the target price at $25 in the report published on March 08th of the current year.

AEO Trading at -6.49% 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 -27.61% of loss for the given period.

Volatility was left at 3.10%, however, over the last 30 days, the volatility rate increased by 2.86%, as shares sank -8.64% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -13.67% lower at present.

During the last 5 trading sessions, AEO fell by -5.85%, which changed the moving average for the period of 200-days by -5.34% in comparison to the 20-day moving average, which settled at $20.32. In addition, American Eagle Outfitters Inc saw -9.55% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at AEO starting from MCMILLAN CARY D, who sale 2,283 shares at the price of $21.49 back on Oct 16 ’24. After this action, MCMILLAN CARY D now owns 0 shares of American Eagle Outfitters Inc, valued at $49,057 using the latest closing price.

MCMILLAN CARY D, the Director of American Eagle Outfitters Inc, proposed sale 2,283 shares at $21.49 during a trade that took place back on Oct 16 ’24, which means that MCMILLAN CARY D is holding shares at $49,057 based on the most recent closing price.

Stock Fundamentals for AEO

Current profitability levels for the company are sitting at:

  • 0.08 for the present operating margin
  • 0.36 for the gross margin

The net margin for American Eagle Outfitters Inc stands at 0.05. The total capital return value is set at 0.16. Equity return is now at value 14.73, with 7.11 for asset returns.

Based on American Eagle Outfitters Inc (AEO), the company’s capital structure generated 0.44 points at debt to capital in total, while cash flow to debt ratio is standing at 0.36. The debt to equity ratio resting at 0.78. The interest coverage ratio of the stock is -36.16.

Currently, EBITDA for the company is 603.99 million with net debt to EBITDA at 1.71. When we switch over and look at the enterprise to sales, we see a ratio of 0.89. The receivables turnover for the company is 23.37for trailing twelve months and the total asset turnover is 1.53. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.57.

Conclusion

To put it simply, American Eagle Outfitters Inc (AEO) has had a bad performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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