American Airlines Group (AAL) Lowered to “Hold” at Zacks Investment Research
Zacks Investment Research downgraded shares of American Airlines Group (NASDAQ:AAL) from a buy rating to a hold rating in a research report sent to investors on Monday.
According to Zacks, “American Airlines 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. However, high costs have the potential to limit bottom-line growth going forward. Consolidated cost per available seat miles (excluding special items and fuel) is expected to increase 4% in the first quarter of 2018. Further, adding to its woes are its high debt levels. In fact, shares of the company have underperformed its industry in the last three months.”
Several other equities analysts have also recently commented on AAL. Buckingham Research boosted their target price on American Airlines Group from $71.00 to $75.00 and gave the stock a buy rating in a research report on Friday, January 26th. BidaskClub cut American Airlines Group from a buy rating to a hold rating in a research report on Friday, January 5th. Sanford C. Bernstein upgraded American Airlines Group from a market perform rating to an outperform rating and boosted their target price for the stock from $52.59 to $62.00 in a research report on Wednesday, January 31st. Morgan Stanley reaffirmed an equal weight rating on shares of American Airlines Group in a research note on Monday, November 13th. Finally, Citigroup lifted their price target on American Airlines Group to $65.00 and gave the stock a buy rating in a research note on Thursday, January 11th. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating, eleven have issued a buy rating and two have issued a strong buy rating to the company. The stock currently has an average rating of Buy and an average price target of $61.38.
American Airlines Group (NASDAQ:AAL) last posted its earnings results on Thursday, January 25th. The airline reported $0.95 EPS for the quarter, topping 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 analysts’ expectations of $10.59 billion. During the same period in the previous year, the business earned $0.92 earnings per share. The firm’s revenue was up 8.3% on a year-over-year basis. equities research analysts predict that American Airlines Group will post 5.8 EPS for the current year.
The company also recently declared a quarterly dividend, which will be paid on Tuesday, February 20th. Shareholders of record on Tuesday, February 6th will be paid a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a yield of 0.78%. The ex-dividend date of this dividend is Monday, February 5th. American Airlines Group’s dividend payout ratio (DPR) is currently 10.23%.
In other news, CEO W Douglas Parker sold 224,572 shares of the business’s stock in a transaction dated Tuesday, January 2nd. The stock was sold at an average price of $52.32, for a total value of $11,749,607.04. Following the completion of the sale, the chief executive officer now owns 1,925,242 shares of the company’s stock, valued at approximately $100,728,661.44. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Alberto Ibarguen sold 4,229 shares of the business’s stock in a transaction dated Friday, November 17th. The shares were sold at an average price of $47.60, for a total value of $201,300.40. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 306,645 shares of company stock valued at $16,027,947. Corporate insiders own 0.64% of the company’s stock.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in AAL. WFG Advisors LP lifted its stake in shares of American Airlines Group by 28.1% in the 2nd 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 last quarter. Exane Derivatives lifted its stake in shares of American Airlines Group by 416.3% in the 3rd 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 last quarter. Johnson Financial Group Inc. bought a new stake in shares of American Airlines Group in the 4th quarter valued at about $127,000. Blue Granite Capital LLC bought a new stake in shares of American Airlines Group in the 3rd quarter valued at about $131,000. Finally, NuWave Investment Management LLC bought a new stake in shares of American Airlines Group in the 4th quarter valued at about $145,000. 80.93% of the stock is owned by institutional investors.
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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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