American Story

<div class='circular--portrait' style='background:#000000;color: #f2f2f2;font-size:4em;'>AE</div>
AEO -- USA Stock  

USD 23.20  0.21  0.91%

The predictive indicators we use to evaluate American help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of American Eagle Outfitters. We apply different methods to arrive at the intrinsic value of American based on widely used predictive technical indicators. A current spike in volatility has left many institutional investors looking confused. In this story, we will outline American Eagle Outfitters. We will look into a few reasons why it is still possible for the company to generate above-average margins and positive cash flow.
Published over three months ago
View all stories for American Eagle | View All Stories
Continue to hold American Eagle (NYSE:AEO)?
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. American Eagle has an asset utilization ratio of 246.24 percent. This suggests that the company is making $2.46 for each dollar of assets. An increasing asset utilization means that American Eagle Outfitters is more efficient with each dollar of assets it utilizes for everyday operations. The company has Net Profit Margin of (2.68) %, which means that it does not effectively control expenditures or properly executes on its pricing strategies. This is way below average. In the same way, it shows Net Operating Margin of 6.07 %, which entails that for every 100 dollars of revenue, it generated 0.06 of operating income.
The successful prediction of American Eagle stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as American Eagle Outfitters, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of American Eagle based on American Eagle hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to American Eagle's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to American Eagle's related companies.

Use Technical Analysis to project American expected Price

American Eagle technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of American Eagle technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of American Eagle trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for American Eagle, but it might be worth checking our own buy vs. sell analysis

Exercise or conversion by Charles Kessler of 90749 shares of American Eagle subject to Rule 16b-3

Legal trades by American Eagle insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
American insider trading alert for exercise of stock option - right to buy by Charles Kessler, Global Brand President-AE, on 28th of December 2020. This event was filed by American Eagle Outfitters with SEC on 2020-12-28. Statement of changes in beneficial ownership - SEC Form 4. Charles Kessler currently serves as global brand president of american eagle outfitters of American Eagle Outfi [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down the case for American Eagle

The latest bullish price patterns experienced by current American Eagle Outfi shareholders could raise concerns from institutional investors as the firm closed today at a share price of 12.62 on 13,660,576 in volume. The company management teams have been very successful in rebalancing the firm assets at opportune times to take advantage of market volatility in August. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.69. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from American Eagle partners.

Cost of Revenue Breakdown

American Eagle Cost of Revenue yearly trend continues to be quite stable with very little volatility. The value of Cost of Revenue is projected to decrease to about 2.6 B. Cost of Revenue usually refers to the aggregate cost of goods produced and sold and services rendered during the reporting period. American Eagle Cost of Revenue is quite stable at the moment as compared to the past year. The company's current value of Cost of Revenue is estimated at 2.59 Billion
20102.19 Billion
20142.79 Billion
20202.59 Billion

Another 3 percent rise for American Eagle

Latest Market Risk Adjusted Performance is up to 0.1. Price may slide again. As of the 8th of September, American Eagle shows the mean deviation of 3.19, and Risk Adjusted Performance of 0.0578. American Eagle Outfi technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to collect and analyze data for nineteen technical drivers for American Eagle Outfitters, which can be compared to its rivals. Please confirm American Eagle Outfi jensen alpha, and the relationship between the coefficient of variation and potential upside to decide if American Eagle Outfi is priced correctly, providing market reflects its regular price of 13.2 per share. Given that American Eagle has jensen alpha of (0.025331), we suggest you to validate American Eagle Outfitters's prevailing market performance to make sure the company can sustain itself at a future point.

Our Takeaway on American Eagle Investment

Whereas other companies under the apparel retail industry are still a bit expensive, American Eagle may offer a potential longer-term growth to institutional investors. While some institutional investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to American Eagle.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of American Eagle Outfitters. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to