Why American Eagle Stock Dropped on Monday

American Eagle (NYSE: AEO) shareholders lost ground to the market on Monday as shares fell as much as 6% by 10 a.m. ET before recovering to a 2.5% drop by 1:15 p.m. The broader S&P 500 was up nearly 2% in that time. An analyst at Citigroup lowered American Eagle's stock rating to the equivalent of a hold while lowering the stock price target to $14 per share from its previous $39 per share. The analyst downgraded several other apparel retailers, due to implications from recent earnings reports from major peers, including Walmart and Target.