Why American Eagle Stock Is Rising Monday

American Eagle Outfitters Inc AEO shares are trading higher Monday after the company announced a $200 million accelerated share repurchase program.

What Happened: American Eagle entered into an accelerated share repurchase agreement with Bank of America to repurchase $200 million of its common stock.

The company expects to complete the accelerated share repurchase agreement in connection with its existing buyback authorization of 68.5 million shares. The accelerated buyback equates to approximately 18.1 million shares at Friday’s closing price.

“We are pleased to announce an accelerated share repurchase program, which reflects our strong capital position and confidence in our long-term strategic growth plan. This program, combined with our quarterly cash dividend, underscores our commitment to a balanced approach to capital allocation and delivering strong returns to shareholders,” said Jay Schottenstein, executive chairman and CEO of American Eagle.

See Also: Retail Sales Rebound Less Than Expected In February: Online, Healthcare Spending Show Strong Gains

Is AEO A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like American Eagle‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. American Eagle does pay a dividend, which yields 2.98% per year as of the closing price on Mar. 17, 2025. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on American Eagle will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

AEO Price Action: American Eagle shares were up 6.37% at $11.77 at the time of publication Monday, according to Benzinga Pro.

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