American Eagle Outfitters Inc. (NYSE:AEO) Relative Strength Index (RSI) is 49.47, with weekly volatility at 5.01% and ATR at 1.70. The AEO stock’s 52-week price range has touched low of $9.03 and a $38.28 high. Intraday shares traded counted 4.45 million, which was -4.69% lower than its 30-day average trading volume of 4.25M. Its shares traded lower over the last trading session, losing -2.82% on 06/01/21. The shares fell to a low of $34.09 before closing at $34.43. AEO’s previous close was $35.43 while the outstanding shares total 166.66M. The firm has a beta of 1.47, a 12-month trailing P/E ratio of 48.09, and a growth ratio of 6.25.
Investors have identified the Apparel Retail company American Eagle Outfitters Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $5.84 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
American Eagle Outfitters Inc. (AEO) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 1.52 billion total, with 858.48 million as their total liabilities.
AEO were able to record 74.52 million as free cash flow during the 08/18/2021 quarter of the year, this saw their quarterly net cash flow reduce by 488.55 million. In cash movements, the company had a total of 202.5 million as operating cash flow.
Potential earnings growth for American Eagle Outfitters Inc. (AEO)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/18/2021 quarter of the year, American Eagle Outfitters Inc. recorded a total of 1.29 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -1.73% coming in sequential stages and their sales for the 08/18/2021 quarter increasing by 20.17%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 852.43 million trying to sell their products during the last quarter, with the result yielding a gross income of 439.87 million. This allows shareholders to hold on to 166.66M with the recently reported earning now reading 0.02 cents per share. This is a figure that compared to analyst’s prediction for their 08/18/2021 (0.48 cents a share).
Having a look at the company’s valuation, the company is expected to record 2.22 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on AEO sounds very interesting.
Is the stock of AEO attractive?
In related news, EVP and General Counsel, Siegal Stacy sold 26,291 shares of the company’s stock in a transaction that recorded on Apr 23. The sale was performed at an average price of 37.93, for a total value of 997,218. As the sale deal closes, the EVP, Chief Operations Officer, Rempell Michael R now sold 65,728 shares of the company’s stock, valued at 2,497,664. Also, EVP, Chief Operations Officer, Rempell Michael R sold 12,417 shares of the company’s stock in a deal that was recorded on Apr 21. The shares were price at an average price of 36.00 per share, with a total market value of 447,012. Following this completion of acquisition, the Global Brand President-AE, Kessler Charles F now holds 41,859 shares of the company’s stock, valued at 1,509,436. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.10%.
10 out of 15 analysts covering the stock have rated it a Buy, while 4 have maintained a Hold recommendation on American Eagle Outfitters Inc.. 0 analysts has assigned a Sell rating on the AEO stock. The 12-month mean consensus price target for the company’s shares has been set at $38.62.