American Airlines Group (AAL) Upgraded to Buy at Zacks Investment Research
American Airlines Group (NASDAQ:AAL) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Tuesday. The firm currently has a $56.00 price target on the airline’s stock. Zacks Investment Research‘s price objective would suggest a potential upside of 11.81% from the stock’s current price.
According to Zacks, “Shares of American Airlines have outperformed its industry in the last three months. The company reported better-than-expected earnings per share and revenues in the fourth quarter of 2017. Additionally, both metrics improved on a year-over-year basis. Strong demand for air travel coupled with improving yields also aided results. The company's performance with respect to unit revenues was also encouraging in the quarter. Efforts to modernize its fleet too raise optimism in the stock. The company efforts to reward shareholders through dividends and share buybacks are also impressive. During 2017, the company returned $1.7 billion to shareholders through dividends and buybacks. However, high costs and debt levels are a cause for worry. “
Several other analysts have also issued reports on the company. Sanford C. Bernstein raised American Airlines Group from a “market perform” rating to an “outperform” rating and boosted their price target for the company from $52.59 to $62.00 in a report on Wednesday, January 31st. Morgan Stanley boosted their price target on American Airlines Group from $58.00 to $60.00 and gave the company an “equal weight” rating in a report on Friday, January 26th. Buckingham Research upped their price objective on American Airlines Group from $71.00 to $75.00 and gave the stock a “buy” rating in a research note on Friday, January 26th. Stephens reaffirmed a “hold” rating and issued a $61.00 price objective on shares of American Airlines Group in a research note on Friday, January 26th. Finally, Imperial Capital reaffirmed an “in-line” rating and issued a $53.00 price objective (up previously from $47.00) on shares of American Airlines Group in a research note on Thursday, January 11th. One research analyst has rated the stock with a sell rating, five have given a hold rating, eleven have given a buy rating and two have assigned a strong buy rating to the stock. The company currently has a consensus rating of “Buy” and an average price target of $61.38.
American Airlines Group (NASDAQ:AAL) last released its quarterly earnings results on Thursday, January 25th. The airline reported $0.95 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.92 by $0.03. American Airlines Group had a return on equity of 63.78% and a net margin of 4.55%. The business had revenue of $10.60 billion during the quarter, compared to analyst estimates of $10.59 billion. During the same quarter in the previous year, the company posted $0.92 earnings per share. American Airlines Group’s revenue for the quarter was up 8.3% on a year-over-year basis. equities analysts anticipate that American Airlines Group will post 5.8 earnings per share for the current year.
In related news, Director Matthew J. Hart sold 35,182 shares of the business’s stock in a transaction dated Monday, February 5th. The stock was sold at an average price of $51.90, for a total value of $1,825,945.80. Following the sale, the director now directly owns 33,258 shares in the company, valued at $1,726,090.20. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Richard C. Kraemer sold 3,000 shares of the business’s stock in a transaction dated Monday, January 29th. The stock was sold at an average price of $52.71, for a total value of $158,130.00. Following the completion of the sale, the director now owns 53,229 shares in the company, valued at $2,805,700.59. The disclosure for this sale can be found here. Insiders sold 306,645 shares of company stock worth $16,027,947 over the last quarter. 0.69% of the stock is owned by company insiders.
Large investors have recently bought and sold shares of the stock. Koch Industries Inc. purchased a new stake in shares of American Airlines Group in the second quarter worth about $265,000. Daiwa Securities Group Inc. lifted its position in shares of American Airlines Group by 215.9% in the third quarter. Daiwa Securities Group Inc. now owns 31,428 shares of the airline’s stock worth $1,493,000 after buying an additional 21,478 shares in the last quarter. Virtu KCG Holdings LLC purchased a new stake in American Airlines Group during the second quarter valued at approximately $322,000. Alyeska Investment Group L.P. purchased a new stake in American Airlines Group during the third quarter valued at approximately $2,409,000. Finally, U S Global Investors Inc. raised its position in American Airlines Group by 1.7% during the third quarter. U S Global Investors Inc. now owns 302,245 shares of the airline’s stock valued at $14,354,000 after purchasing an additional 5,014 shares during the period. Institutional investors own 80.93% of the company’s stock.
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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