Taking a Fresh Look at American Eagle Outfitters, Inc. (AEO)

American Eagle Outfitters, Inc. (AEO) is an interesting player in the Services space, with a focus on Apparel Stores. The stock has been active on the tape, currently trading at $17.40, down from yesterday’s close by -1.58%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

American Eagle Outfitters, Inc. (AEO) currently trades with a market capitalization of $3.05 Billion. That value represents a market adjusting for revenues that have been growing by 2.11 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $162.04 Million over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $0.44 on a per share basis this quarter. Perhaps, that suggests something about why 3.47% of the outstanding share supply is held by institutional investors.

Technical Analysis

It’s important to check the technicals to get a sense of how AEO has been acting. Looking at the stock’s movement on the chart, American Eagle Outfitters, Inc. recorded a 52-week high of $19.48. It is now trading 2.08% off that level. The stock is trading $17.87 its 50-day moving average by 0.47%. The stock carved out a 52-week low down at $10.23.

In recent action, American Eagle Outfitters, Inc. (AEO) has made a move of -5.13% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 12.51, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 8.49% with $166.90 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of AEO.

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