American Airlines Group, Inc. (AAL) Upgraded by Zacks Investment Research to Hold
Zacks Investment Research upgraded shares of American Airlines Group, Inc. (NASDAQ:AAL) from a strong sell rating to a hold rating in a research report released on Monday morning.
According to Zacks, “American Airlines' revenues in the third quarter rose 2.7% year over year. Strong demand for air travel coupled with improving yields drove the top line in the quarter. We are impressed by American Airlines' efforts to modernize its fleet. During the third quarter, the carrier invested more than $900 million on 13 new planes and three regional ones. The carrier's efforts to reward shareholders through share buybacks and dividend payments are also impressive. However, the carrier's earnings declined significantly in the third quarter due to higher costs and the recent hurricanes. American Airlines had to cancel approximately 8000 flights in the third quarter due to the hurricanes. With the company inking multiple labor deals, labor costs have spiked. American Airlines is also a highly leveraged company. Shares of the company have struggled so far this year.”
Other research analysts have also issued reports about the company. Morgan Stanley decreased their price objective on American Airlines Group from $52.00 to $51.00 and set an equal weight rating on the stock in a report on Friday, September 1st. J P Morgan Chase & Co raised American Airlines Group from a neutral rating to an overweight rating and set a $65.00 price objective on the stock in a report on Wednesday, November 1st. Citigroup Inc. reaffirmed a buy rating on shares of American Airlines Group in a report on Wednesday, September 13th. Barclays PLC raised American Airlines Group from an equal weight rating to an overweight rating and upped their price objective for the company from $55.00 to $65.00 in a report on Friday, September 22nd. Finally, Buckingham Research reaffirmed a buy rating on shares of American Airlines Group in a report on Friday, October 27th. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating, eight have given a buy rating and two have given a strong buy rating to the company’s stock. American Airlines Group presently has a consensus rating of Buy and an average target price of $58.47.
Shares of American Airlines Group (NASDAQ AAL) traded down $0.08 during trading on Monday, hitting $45.74. The stock had a trading volume of 1,772,400 shares, compared to its average volume of 6,166,118. American Airlines Group has a one year low of $39.21 and a one year high of $54.48. The company has a market cap of $21,920.00, a PE ratio of 9.41 and a beta of 0.97. The company has a current ratio of 0.65, a quick ratio of 0.57 and a debt-to-equity ratio of 5.63.
American Airlines Group (NASDAQ:AAL) last posted its earnings results on Thursday, October 26th. The airline reported $1.42 earnings per share for the quarter, topping analysts’ consensus estimates of $1.40 by $0.02. The business had revenue of $10.88 billion for the quarter, compared to analyst estimates of $10.88 billion. American Airlines Group had a return on equity of 64.92% and a net margin of 4.71%. The firm’s revenue was up 2.7% compared to the same quarter last year. During the same period in the previous year, the firm earned $2.80 EPS. analysts forecast that American Airlines Group will post 4.64 earnings per share for the current fiscal year.
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The business also recently declared a quarterly dividend, which will be paid on Monday, November 27th. Stockholders of record on Monday, November 13th will be paid a $0.10 dividend. The ex-dividend date of this dividend is Friday, November 10th. This represents a $0.40 annualized dividend and a dividend yield of 0.87%. American Airlines Group’s payout ratio is 10.18%.
In related news, Director Ray M. Robinson sold 3,476 shares of the firm’s stock in a transaction that occurred on Thursday, September 14th. The stock was sold at an average price of $46.76, for a total transaction of $162,537.76. Following the completion of the sale, the director now owns 29,938 shares of the company’s stock, valued at $1,399,900.88. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 0.69% of the company’s stock.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. MCF Advisors LLC acquired a new stake in American Airlines Group in the second quarter valued at approximately $106,000. Westside Investment Management Inc. grew its stake in American Airlines Group by 3.5% in the second quarter. Westside Investment Management Inc. now owns 2,116 shares of the airline’s stock valued at $111,000 after acquiring an additional 72 shares during the period. First Manhattan Co. grew its stake in American Airlines Group by 3.3% in the second quarter. First Manhattan Co. now owns 2,380 shares of the airline’s stock valued at $119,000 after acquiring an additional 75 shares during the period. WFG Advisors LP grew its stake in American Airlines Group by 28.1% in the second quarter. WFG Advisors LP now owns 2,367 shares of the airline’s stock valued at $119,000 after acquiring an additional 519 shares during the period. Finally, Exane Derivatives grew its stake in American Airlines Group by 416.3% in the third quarter. Exane Derivatives now owns 2,592 shares of the airline’s stock valued at $123,000 after acquiring an additional 2,090 shares during the period. 83.51% of the stock is owned by institutional investors and hedge funds.
About American Airlines Group
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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