Investors Buy High Volume of American Eagle Outfitters Put Options (NYSE:AEO)

American Eagle Outfitters (NYSE:AEO) was the target of unusually large options trading activity on Tuesday. Stock investors bought 9,488 put options on the company. This represents an increase of 1,179% compared to the average volume of 742 put options.

AEO stock traded down $0.45 during trading on Thursday, reaching $14.25. 4,722,000 shares of the company were exchanged, compared to its average volume of 5,220,183. American Eagle Outfitters has a twelve month low of $13.66 and a twelve month high of $24.30. The company has a debt-to-equity ratio of 1.07, a current ratio of 1.33 and a quick ratio of 0.53. The company has a market capitalization of $2.45 billion, a price-to-earnings ratio of 9.63, a P/E/G ratio of 1.72 and a beta of 0.83. The company has a 50-day moving average of $14.93 and a two-hundred day moving average of $16.09.

American Eagle Outfitters (NYSE:AEO) last posted its earnings results on Wednesday, December 11th. The apparel retailer reported $0.48 earnings per share for the quarter, hitting the Zacks’ consensus estimate of $0.48. American Eagle Outfitters had a net margin of 6.20% and a return on equity of 21.25%. The firm had revenue of $1.07 billion for the quarter, compared to analyst estimates of $1.06 billion. During the same period in the previous year, the firm posted $0.48 EPS. The company’s revenue for the quarter was up 6.2% compared to the same quarter last year. On average, analysts forecast that American Eagle Outfitters will post 1.47 EPS for the current year.

The business also recently announced a quarterly dividend, which will be paid on Friday, January 17th. Investors of record on Friday, January 3rd will be paid a dividend of $0.1375 per share. This represents a $0.55 annualized dividend and a yield of 3.86%. The ex-dividend date is Thursday, January 2nd. American Eagle Outfitters’s dividend payout ratio is presently 37.16%.

A number of brokerages have recently commented on AEO. Morgan Stanley decreased their price objective on shares of American Eagle Outfitters from $17.00 to $14.00 and set an “underweight” rating for the company in a research report on Thursday, September 5th. Royal Bank of Canada reduced their target price on shares of American Eagle Outfitters from $18.00 to $16.00 and set a “sector perform” rating for the company in a report on Thursday, December 12th. Jefferies Financial Group set a $22.00 target price on shares of American Eagle Outfitters and gave the stock a “buy” rating in a report on Wednesday, September 4th. Cowen lifted their target price on shares of American Eagle Outfitters from $17.00 to $25.00 and gave the stock an “outperform” rating in a report on Thursday, September 5th. Finally, Loop Capital downgraded shares of American Eagle Outfitters from a “buy” rating to a “hold” rating and reduced their target price for the stock from $20.00 to $15.00 in a report on Monday, November 25th. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating and six have assigned a buy rating to the stock. The stock has an average rating of “Hold” and an average price target of $19.64.

A number of hedge funds and other institutional investors have recently modified their holdings of AEO. BlackRock Inc. raised its holdings in American Eagle Outfitters by 2.9% during the second quarter. BlackRock Inc. now owns 20,340,847 shares of the apparel retailer’s stock worth $343,758,000 after buying an additional 567,714 shares during the last quarter. Renaissance Technologies LLC raised its holdings in American Eagle Outfitters by 59.4% during the second quarter. Renaissance Technologies LLC now owns 4,462,954 shares of the apparel retailer’s stock worth $75,424,000 after buying an additional 1,663,000 shares during the last quarter. Macquarie Group Ltd. raised its holdings in American Eagle Outfitters by 6.5% during the second quarter. Macquarie Group Ltd. now owns 3,469,983 shares of the apparel retailer’s stock worth $58,642,000 after buying an additional 212,563 shares during the last quarter. JPMorgan Chase & Co. raised its holdings in American Eagle Outfitters by 6.9% during the second quarter. JPMorgan Chase & Co. now owns 3,299,897 shares of the apparel retailer’s stock worth $56,098,000 after buying an additional 214,176 shares during the last quarter. Finally, Voya Investment Management LLC raised its holdings in American Eagle Outfitters by 35.8% during the third quarter. Voya Investment Management LLC now owns 2,521,904 shares of the apparel retailer’s stock worth $40,905,000 after buying an additional 665,256 shares during the last quarter. 91.96% of the stock is currently owned by institutional investors and hedge funds.

American Eagle Outfitters Company Profile

American Eagle Outfitters, Inc operates as a specialty retailer that provides clothing, accessories, and personal care products under the American Eagle and Aerie brands. The company also provides jeans, and other apparel and accessories for men and women; and intimates, activewear, and swim collections, as well as personal care products for women.

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