Is American Eagle Set To Go Private Now? (AEO)

Earlier American Eagle AEO announced that its CEO would be retiring, which could lead to the company finally going private.

American Eagle has been the subject of going private a hundred times if it's been mentioned once, and this could be the catalyst to finally get things moving.

James V. O'Donnell the company CEO, will stay on until a successor is named and through an orderly transition period.

“It's been a privilege to be part of American Eagle Outfitters, and I'm proud of what our team has accomplished in building a world-class company with iconic brands,” Mr. O'Donnell said. “American Eagle continues to leverage the strength of its preeminent brand, aerie is making significant, positive strides, and 77kids is off to a great start. With this solid foundation in place, it is an appropriate time for the Company to make this transition. I look forward to working with the Board to identify our next CEO. I am especially proud of the employees we have brought together; it is an incredible team and my opportunity to work with them made my decade here the highlight of my business career. In the meantime, I will be continuing to work with our management and associates to focus on implementing our strategic plans and take advantage of the significant growth potential we see for the Company.”

Jay L. Schottenstein, Chairman of the Board, said, “We are extremely grateful for Jim's many contributions to our Company, including achieving a high level of operating and financial performance from which we can continue to build, assembling a world-class management team, and successfully expanding our retail footprint including entry into international markets to leverage the global reach of the American Eagle brand. Jim has led the growth and development of our Company for much of the last ten years and will leave behind an organization that is well positioned for the future.”

In the press release it doesn't mention anything about maximizing shareholder value, which generally is an indication that the company is trying to go private or do something radical to increase the share price, but usually where there's smoke there's fire.

I would not be surprised to see American Eagle go private, and if investors believe this, then perhaps buying out of the money calls or the company's common stock could be a potentially beneficial trade.

Shares are up in pre-market on this news, to $15.07, suggesting that other investors feel the same way.