American Eagle Outfitters Inc. (NYSE:AEO) Stock: Worth Taking a Bite?

American Eagle Outfitters Inc. (NYSE:AEO) shares traded lower over the last trading session, losing -2.90% on 06/18/21. The shares fell to a low of $32.94 before closing at $33.11. Intraday shares traded counted 4.6 million, which was -17.59% lower than its 30-day average trading volume of 3.91M. AEO’s previous close was $34.10 while the outstanding shares total 167.26M. The firm has a beta of 1.48, a 12-month trailing P/E ratio of 46.24, and a growth ratio of 6.01. The stock’s Relative Strength Index (RSI) is 44.38, with weekly volatility at 3.37% and ATR at 1.47. The AEO stock’s 52-week price range has touched low of $9.25 and a $38.28 high.

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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 $5.72 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 1.5 billion total, with 744.48 million as their total liabilities.

AEO were able to record -36.38 million as free cash flow during the 08/18/2021 quarter of the year, this saw their quarterly net cash flow reduce by -133.8 million. In cash movements, the company had a total of 0.43 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 1.03 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 46.68% coming in sequential stages and their sales for the 08/18/2021 quarter reducing by -24.91%.

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 598.42 million trying to sell their products during the last quarter, with the result yielding a gross income of 436.19 million. This allows shareholders to hold on to 167.26M with the recently reported earning now reading 0.57 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 2.24 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 & Chief Commercial Officer, McLean Andrew J. sold 18,549 shares of the company’s stock in a transaction that recorded on Jun 14. The sale was performed at an average price of 35.00, for a total value of 649,215. As the sale deal closes, the Global Brand President-aerie, Foyle Jennifer M. now sold 11,305 shares of the company’s stock, valued at 381,431. Also, EVP & Chief Commercial Officer, McLean Andrew J. sold 2,268 shares of the company’s stock in a deal that was recorded on Jun 07. The shares were price at an average price of 33.49 per share, with a total market value of 75,955. Following this completion of acquisition, the Director, DAVIS STEVEN A now holds 4,000 shares of the company’s stock, valued at 129,798. 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 $42.08.