5 Best Dividend Stocks to Buy Under $25

4. American Eagle Outfitters, Inc. (NYSE:AEO)

Number of Hedge Fund Holders: 43

Share Price as of the Close of June 18: $17.81

On June 1, Citi lowered its price recommendation on American Eagle Outfitters, Inc. (NYSE:AEO) to $18 from $24. It reiterated a Neutral rating on the stock. The update came following the company’s first-quarter results. The firm said momentum at Aerie could continue to help offset weaker sales at the company’s namesake American Eagle brand.

On May 29, BofA reduced its price goal on American Eagle to $16 from $20. It maintained an Underperform rating on the shares. Analyst Lorraine Hutchinson noted that higher investments meant stronger comparable sales guidance did not lead to an increase in FY26 operating profit. As a result, the firm lowered its FY26 and FY27 earnings per share estimates by 4% and 13%, respectively. BofA also believes the stock deserves a deeper discount relative to its historical average because of ongoing challenges at the American Eagle flagship brand.

American Eagle Outfitters, Inc. (NYSE:AEO) is a global specialty retailer that operates a portfolio of apparel brands. The company sells clothing, accessories, and personal care products through its American Eagle and Aerie brands.