American Eagle Outfitters (NYSE:AEO – Get Free Report) was upgraded by investment analysts at BMO Capital Markets to a “hold” rating in a report issued on Tuesday, Zacks reports.
AEO has been the subject of a number of other reports. TD Cowen dropped their price target on shares of American Eagle Outfitters from $19.00 to $18.00 and set a “hold” rating for the company in a research note on Monday, May 18th. Citigroup reduced their price objective on shares of American Eagle Outfitters from $24.00 to $18.00 and set a “neutral” rating on the stock in a research note on Monday, June 1st. The Goldman Sachs Group set a $22.00 target price on shares of American Eagle Outfitters in a report on Monday, June 1st. William Blair reiterated a “buy” rating on shares of American Eagle Outfitters in a research report on Wednesday, July 15th. Finally, Wall Street Zen raised American Eagle Outfitters from a “hold” rating to a “buy” rating in a research note on Saturday, September 5th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $19.36.
Check Out Our Latest Stock Report on AEO
American Eagle Outfitters Price Performance
American Eagle Outfitters (NYSE:AEO – Get Free Report) last released its earnings results on Wednesday, September 9th. The apparel retailer reported $0.79 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.22 by $0.57. The company had revenue of $1.38 billion for the quarter, compared to the consensus estimate of $1.37 billion. American Eagle Outfitters had a net margin of 5.91% and a return on equity of 24.02%. The company’s revenue was up 7.5% compared to the same quarter last year. During the same period in the prior year, the company posted $0.45 EPS. Research analysts expect that American Eagle Outfitters will post 1.76 EPS for the current year.
Insider Activity
In related news, Director Noel Spiegel sold 2,892 shares of American Eagle Outfitters stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $16.78, for a total transaction of $48,527.76. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Cary McMillan sold 2,892 shares of the business’s stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $16.77, for a total transaction of $48,498.84. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 11,563 shares of company stock valued at $196,599 in the last ninety days. 8.95% of the stock is owned by insiders.
Hedge Funds Weigh In On American Eagle Outfitters
Institutional investors and hedge funds have recently made changes to their positions in the company. BlackRock Inc. bought a new position in shares of American Eagle Outfitters during the 2nd quarter valued at about $458,632,000. Marshall Wace LLP increased its stake in American Eagle Outfitters by 920.6% during the 3rd quarter. Marshall Wace LLP now owns 5,497,720 shares of the apparel retailer’s stock worth $94,066,000 after purchasing an additional 4,959,039 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its stake in American Eagle Outfitters by 162.9% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 6,336,392 shares of the apparel retailer’s stock worth $105,818,000 after purchasing an additional 3,926,230 shares in the last quarter. California State Teachers Retirement System increased its stake in American Eagle Outfitters by 1,570.4% during the 2nd quarter. California State Teachers Retirement System now owns 3,119,444 shares of the apparel retailer’s stock worth $53,654,000 after purchasing an additional 2,932,699 shares in the last quarter. Finally, Nykredit A S acquired a new stake in American Eagle Outfitters during the 2nd quarter worth approximately $46,023,000. Institutional investors and hedge funds own 97.33% of the company’s stock.
Key American Eagle Outfitters News
Here are the key news stories impacting American Eagle Outfitters this week:
- Positive Sentiment: Second-quarter revenue increased 8% year over year to approximately $1.38 billion, narrowly exceeding estimates. Total comparable sales rose 6%, supported by Aerie and OFFLINE, while earnings of $0.79 per share significantly surpassed the roughly $0.22 consensus estimate. American Eagle Outfitters beats quarterly revenue estimates
- Positive Sentiment: Management cited strength in Aerie intimates, sleepwear and apparel, and issued a stronger fiscal 2026 operating-income outlook that incorporates tariff-related benefits. The company’s low leverage and ongoing brand improvement provide additional financial support. American Eagle Q2 Earnings Beat on Tariff Refunds, Aerie Strength
- Neutral Sentiment: Analysts reduced price targets following the report: Morgan Stanley lowered its target to $17 and Telsey Advisory Group to $18, while UBS cut its target to $27 but retained a Buy rating. These targets remain above the recent trading level, but the revisions signal reduced confidence in near-term execution.
- Negative Sentiment: The headline profit beat was substantially helped by an estimated $161 million in tariff refunds, raising concerns about earnings durability. Without that benefit, underlying profitability and merchandise margins would have appeared less robust. American Eagle shares slide as flat margin outlook, weak core brand weigh
- Negative Sentiment: American Eagle’s core-brand comparable sales fell 1%, and management acknowledged that more work is needed on the banner. Aerie’s sales growth also slowed, while the company maintained its annual same-store-sales forecast and projected flat third-quarter gross margins. Investors interpreted the outlook as evidence that cautious consumers and brand pressure remain unresolved. American Eagle Stock Slumps on Signs of Weakness at Namesake Brand
About American Eagle Outfitters
American Eagle Outfitters, Inc (NYSE: AEO) is a leading American specialty retailer offering apparel, accessories and personal care products for men and women. The company’s flagship brand, American Eagle, focuses on casualwear including denim, tops, outerwear and accessories targeted primarily at teens and young adults. In addition to its core apparel lines, the company operates the Aerie brand of intimates, loungewear and swimwear, which has gained recognition for its body-positive marketing and inclusive sizing.
American Eagle Outfitters conducts business through a combination of over 900 brick-and-mortar stores in North America and Greater China, complemented by a growing e-commerce platform that serves customers around the globe.
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