Why American Eagle Stock Dropped 4.5% on Wednesday
Clothing retailer American Eagle Outfitters (NYSE: AEO) was down as much as 5.3% on Wednesday, with the stock price ending the day at $11.24 -- down 4.5%.
All the major indexes finished lower once again on Wednesday, but American Eagle suffered from an analyst lowering its price target, as well as cloudy earnings news from competitors.
American Eagle Outfitters, a clothing retailer primarily for teens and young adults, likely sank, in part, to Telsey Advisory Group lowering its price target on Wednesday. Telsey lowered the target from $17 to $15, citing inflation pressures on retailers and consumers that will create a challenging economic environment in the second half of the year.
Source Fool.com
