American Eagle Outfitters, Inc. (NYSE: AEO) shares fell in early trading today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Meanwhile in early trading, the Dow Jones Industrial Average DJIA, +0.31% rose 24 points, or 0.1%, to 19,883, while the S&P 500 index ESH7, +0.13% dipped less than 1 point to 2,268. The Nasdaq Composite COMP, +0.02% which reached its fourth-straight record close on Tuesday, rose 1 point to 5,553.
American Eagle Outfitters, Inc. (NYSE: AEO) had its Buy rating reiterated by equities researchers at Wunderlich in a research note to investors. The company currently has a rating of Buy on the shares. The one-year price target of $18.40 is above the opening price of $15.41, causing a number of other analysts to issue statements on the company recently. Looking back over the last 52 weeks, American Eagle Outfitters, Inc. stock has a high of $19.55. Stock prices often shift to the upside on recommendations and new price targets of professional analysts.
Shares of American Eagle Outfitters, Inc. (NYSE: AEO) opened at $15.41 yesterday and traded in a range between, $15.08 and $15.45, and last traded at $15.08, which is a dip of $0.16 from the previous closing price.
American Eagle Outfitters, Inc. (NYSE: AEO) now has a market cap of 2.74B.
American Eagle Outfitters, Inc. (NYSE: AEO) Average Daily Trading Volume
403,762 shares traded hands yesterday, 76 percent below the average, out of a total float 164,886,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have substantial teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you are researching.
American Eagle Outfitters, Inc. (NYSE: AEO) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
With that in mind, American Eagle Outfitters, Inc. (NYSE: AEO) now has a 50-day MA of $16.52 and 200-day MA of $17.37. It has traded in a 52-week range between $12.78 – 19.55 and today’s last price is 22.86%% lower than the 52 week high of $19.55.
Earnings growth is a critical factor to look at when buying stocks and investors seek companies that have raised their earnings at least 25% or more for 3 consecutive years.
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