Insights

Why American Eagle Outfitters Stock Soared Today

What happened

One of the more encouraging moves a publicly traded company’s managers can make is to buy stock in their own business. That was the dynamic behind the 4%-plus stock pop of retailer American Eagle Outfitters (NYSE: AEO) on Wednesday.

So what

Not one but two members of American Eagle’s board have loaded up on American Eagle stock. According to a regulatory filing made public late Tuesday, Noel Spiegel divulged that he purchased 20,000 of American Eagle’s common shares at a price of $12 apiece last Friday. His fellow board member David Sable picked up 1,000 of the same shares, paying just over $11.77 apiece for the privilege on Tuesday.

Both men were reelected to their positions at the company’s latest annual general meeting, which was held last week.

Now what

American Eagle’s prospects seem to be brightening, as the lingering coronavirus pandemic isn’t keeping shoppers from flocking to retail stores. The company is benefiting from this with net revenue that has been rising lately, and has topped even comparable quarters from the pre-pandemic year of 2019. And although it cut its full-year guidance, it’s still expecting operating profit above both the 2019 and 2021 results.

Not everyone has the confidence in American Eagle demonstrated by Spiegel’s and Sable’s stock buys. In its latest reported quarter, the company missed widely on the average profitability estimate, and also whiffed on revenue. In the wake of those misses, two investment banks — Morgan Stanley and JPMorgan Chase — downgraded their recommendations on the stock.

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends American Eagle Outfitters. The Motley Fool has a disclosure policy.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Rebate Rewards

Level 2 Rebate

Deposit $2,000 and get $200 Rebate
$ 200 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $2,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $200 Rebate
Popular

Level 1 Rebate

Deposit $1,000 and get $100 Rebate
$ 100 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $1,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $100 Rebate

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

EASY QUALIFICATION & LOW ENTRY
NEW CLIENT REBATE OFFER
EARN UP TO $200 CASH REBATE
Act Fast - Promotion Ends In
Click Here To Get Started
EASY QUALIFICATION & LOW ENTRY
NEW CLIENT REBATE OFFER
EARN UP TO $200 CASH REBATE
Act Fast - Promotion Ends In
Click Here For More Info