American Airlines Group, Inc. (AAL) Lowered to “Strong Sell” at Zacks Investment Research
American Airlines Group, Inc. (NASDAQ:AAL) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors on Monday.
According to Zacks, “Shares of American Airlines have struggled so far this year due to multiple headwinds. The stock has been up a mere 1.7% year to date, as against the industry’s rally of 8.9% in the same period. The recent weather-related disruptions have also hurt American Airlines like most other carriers. High fuel and labor costs are likely to hurt its third-quarter results as well. Consequently, the company trimmed its third-quarter unit revenue view. The company's high debt levels too raises concerns. In fact, the negative sentiment surrounding the stock can be gauged from the fact that the Zacks Consensus Estimate for third-quarter earnings has been revised 17.9% downward over the last 30 days. Nevertheless, we are pleased with the company's efforts to reward shareholders. Efforts to modernize its fleet also raise optimism.”
Several other research analysts have also recently weighed in on the company. Morgan Stanley decreased their target price on American Airlines Group from $52.00 to $51.00 and set an “equal weight” rating for the company in a research note on Friday, September 1st. Bank of America Corporation lifted their target price on American Airlines Group from $40.00 to $42.00 and gave the stock an “underperform” rating in a report on Friday, June 30th. Citigroup Inc. boosted their price target on shares of American Airlines Group from $58.00 to $67.00 and gave the stock a “buy” rating in a research report on Thursday, July 13th. BidaskClub cut shares of American Airlines Group from a “strong-buy” rating to a “buy” rating in a research report on Friday, June 16th. Finally, J P Morgan Chase & Co cut shares of American Airlines Group from an “overweight” rating to a “neutral” rating and dropped their price target for the stock from $61.00 to $53.00 in a research report on Friday, September 15th. Two investment analysts have rated the stock with a sell rating, eight have given a hold rating, nine have given a buy rating and two have given a strong buy rating to the stock. The company currently has an average rating of “Buy” and an average target price of $56.86.
Shares of American Airlines Group (NASDAQ:AAL) opened at 47.49 on Monday. American Airlines Group has a 52-week low of $35.86 and a 52-week high of $54.48. The stock has a market capitalization of $23.13 billion, a price-to-earnings ratio of 11.79 and a beta of 0.99. The company has a 50 day moving average of $46.60 and a 200 day moving average of $46.73.
American Airlines Group (NASDAQ:AAL) last issued its quarterly earnings results on Friday, July 28th. The airline reported $1.92 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.87 by $0.05. American Airlines Group had a return on equity of 83.58% and a net margin of 5.02%. The company had revenue of $11.11 billion for the quarter, compared to analysts’ expectations of $11.08 billion. During the same period last year, the firm earned $1.77 EPS. The firm’s revenue for the quarter was up 7.2% on a year-over-year basis. Analysts predict that American Airlines Group will post $4.70 EPS for the current fiscal year.
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In other American Airlines Group news, Director Ray M. Robinson sold 3,476 shares of American Airlines Group stock in a transaction dated Thursday, September 14th. The stock was sold at an average price of $46.76, for a total transaction of $162,537.76. Following the transaction, the director now owns 29,938 shares of the company’s stock, valued at approximately $1,399,900.88. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Elise R. Eberwein sold 50,000 shares of the company’s stock in a transaction dated Wednesday, August 2nd. The shares were sold at an average price of $50.35, for a total value of $2,517,500.00. Following the completion of the transaction, the executive vice president now owns 312,368 shares in the company, valued at approximately $15,727,728.80. The disclosure for this sale can be found here. Over the last three months, insiders sold 63,476 shares of company stock valued at $3,159,738. Company insiders own 0.69% of the company’s stock.
Several hedge funds and other institutional investors have recently bought and sold shares of the company. Primecap Management Co. CA boosted its holdings in shares of American Airlines Group by 3.4% during the first quarter. Primecap Management Co. CA now owns 46,745,831 shares of the airline’s stock worth $1,977,349,000 after purchasing an additional 1,524,040 shares during the period. Vanguard Group Inc. increased its stake in American Airlines Group by 0.3% in the 2nd quarter. Vanguard Group Inc. now owns 30,304,361 shares of the airline’s stock valued at $1,524,915,000 after buying an additional 93,279 shares during the period. BlackRock Inc. increased its stake in American Airlines Group by 4,435.0% in the 1st quarter. BlackRock Inc. now owns 28,607,876 shares of the airline’s stock valued at $1,210,114,000 after buying an additional 27,977,045 shares during the period. FMR LLC increased its stake in American Airlines Group by 56.3% in the 1st quarter. FMR LLC now owns 26,825,165 shares of the airline’s stock valued at $1,134,705,000 after buying an additional 9,667,389 shares during the period. Finally, Geode Capital Management LLC increased its stake in American Airlines Group by 7.6% in the 1st quarter. Geode Capital Management LLC now owns 5,297,036 shares of the airline’s stock valued at $223,815,000 after buying an additional 375,764 shares during the period. 81.56% of the stock is owned by institutional investors and hedge funds.
American Airlines Group Company Profile
American Airlines Group Inc is a holding company. The Company’s primary business activity is the operation of a network air carrier, providing scheduled air transportation for passengers and cargo. The Company operates through American segment, which provides air transportation for passengers and cargo.
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