Zacks Investment Research downgraded shares of American Eagle Outfitters Inc. (NYSE:AEO) from a hold rating to a sell rating in a research report released on Tuesday.

According to Zacks, “Though American Eagle's global expansion plans and omni-channel growth are likely to enable it to augment business, its high dependence on external suppliers and macroeconomic headwinds may dampen results. Further, the company’s attempt to grow globally also exposes it to adverse currency movements and other international risks, which pose concerns. The company's estimates have been stable lately ahead of the  third quarter results, while it has a recent record of positive earnings surprises. Also, the company has been outperforming the Zacks Categorized Retail-Apparel/Shoe market on a year-to-date basis. American Eagle has been gaining from its constant efforts to enhance brands via innovations, make technological advancements as well as its commitment toward enriching consumer experience. Further, management issued a decent third-quarter view, as it entered the fall season with great expectations.”

AEO has been the topic of several other reports. BMO Capital Markets upgraded shares of American Eagle Outfitters from a market perform rating to an outperform rating and lifted their price objective for the stock from $18.00 to $21.00 in a research report on Monday, October 10th. They noted that the move was a valuation call. BlueFin Research reiterated an outperform rating and set a $22.00 price objective on shares of American Eagle Outfitters in a research report on Wednesday, September 28th. Jefferies Group reiterated a buy rating on shares of American Eagle Outfitters in a research report on Monday, August 1st. FBR & Co upgraded shares of American Eagle Outfitters from a market perform rating to an outperform rating and lifted their price objective for the stock from $17.00 to $19.00 in a research report on Thursday, August 25th. Finally, Deutsche Bank AG upgraded shares of American Eagle Outfitters from a hold rating to a buy rating and lifted their price objective for the stock from $17.00 to $22.00 in a research report on Monday, August 15th. Three investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and thirteen have issued a buy rating to the stock. The stock has a consensus rating of Hold and an average price target of $19.63.

American Eagle Outfitters (NYSE:AEO) opened at 18.91 on Tuesday. The firm has a 50-day moving average price of $17.46 and a 200 day moving average price of $17.15. American Eagle Outfitters has a 52-week low of $12.78 and a 52-week high of $19.55. The stock has a market capitalization of $3.44 billion, a price-to-earnings ratio of 15.04 and a beta of 0.86.

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In other American Eagle Outfitters news, COO Michael R. Rempell sold 50,826 shares of the company’s stock in a transaction dated Friday, September 2nd. The shares were sold at an average price of $18.84, for a total transaction of $957,561.84. Following the sale, the chief operating officer now directly owns 106,077 shares of the company’s stock, valued at $1,998,490.68. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 5.80% of the stock is currently owned by corporate insiders.

Hedge funds have recently modified their holdings of the company. BlackRock Fund Advisors boosted its stake in shares of American Eagle Outfitters by 6.9% in the third quarter. BlackRock Fund Advisors now owns 8,838,929 shares of the apparel retailer’s stock valued at $157,863,000 after buying an additional 570,211 shares in the last quarter. LSV Asset Management boosted its stake in shares of American Eagle Outfitters by 4.2% in the third quarter. LSV Asset Management now owns 7,611,465 shares of the apparel retailer’s stock valued at $135,940,000 after buying an additional 308,936 shares in the last quarter. BlackRock Institutional Trust Company N.A. boosted its stake in shares of American Eagle Outfitters by 1.7% in the third quarter. BlackRock Institutional Trust Company N.A. now owns 5,258,918 shares of the apparel retailer’s stock valued at $93,924,000 after buying an additional 88,083 shares in the last quarter. Bank of New York Mellon Corp boosted its stake in shares of American Eagle Outfitters by 8.8% in the third quarter. Bank of New York Mellon Corp now owns 4,859,979 shares of the apparel retailer’s stock valued at $86,800,000 after buying an additional 393,844 shares in the last quarter. Finally, Hamlin Capital Management LLC boosted its stake in shares of American Eagle Outfitters by 13.8% in the second quarter. Hamlin Capital Management LLC now owns 4,601,788 shares of the apparel retailer’s stock valued at $73,306,000 after buying an additional 556,632 shares in the last quarter. 99.36% of the stock is currently owned by hedge funds and other institutional investors.

About American Eagle Outfitters

American Eagle Outfitters, Inc (AEO Inc) is a specialty retailer, operating over 1,000 retail stores and online at ae.com and aerie.com in the United States and internationally. The Company operates in the segment of American Eagle Outfitters Brand (AEO Brand) retail stores, Aerie by American Eagle Outfitters retail stores and AEO Direct.

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