American Airlines Group (AAL) Stock Rating Upgraded by Zacks Investment Research
Zacks Investment Research upgraded shares of American Airlines Group (NASDAQ:AAL) from a hold rating to a buy rating in a research report report published on Tuesday morning. They currently have $63.00 target price on the airline’s stock.
According to Zacks, “Shares of American Airlines have outperformed its industry over the last six months. The company's performance with respect to unit revenues is encouraging. Its 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. The company's employee-friendly attiude also encourages us. Employees at American Airlines earned more than $240 million in 2017, as part of the company's profit sharing scheme. Its efforts to modernize fleet too raise optimism in the stock. The company's expansion initiatives are a further positive. To this end, American Airlines purchased a minority stake in China Southern Airlines, last year. However, high costs and debt levels remain a cause of concern. In fact, high costs are likely to hurt the company's bottom line in the first quarter.”
Other equities analysts have also issued research reports about the stock. Buckingham Research boosted their price target on shares of American Airlines Group from $71.00 to $75.00 and gave the company a buy rating in a report on Friday, January 26th. Citigroup boosted their price target on shares of American Airlines Group to $65.00 and gave the company a buy rating in a report on Thursday, January 11th. Bank of America raised shares of American Airlines Group from an underperform rating to a buy rating and set a $64.00 price target for the company in a report on Tuesday, January 9th. BidaskClub raised shares of American Airlines Group from a hold rating to a buy rating in a report on Wednesday, December 27th. Finally, Morgan Stanley reissued an equal weight rating on shares of American Airlines Group in a report on Monday, November 13th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating, eleven have assigned a buy rating and two have given a strong buy rating to the stock. The stock presently has a consensus rating of Buy and a consensus target price of $61.74.
American Airlines Group (NASDAQ:AAL) last announced its quarterly earnings results on Thursday, January 25th. The airline reported $0.95 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.92 by $0.03. American Airlines Group had a net margin of 4.55% and a return on equity of 63.78%. The company 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 business earned $0.92 EPS. The firm’s revenue was up 8.3% on a year-over-year basis. equities analysts forecast that American Airlines Group will post 5.89 earnings per share for the current fiscal year.
The business also recently announced a quarterly dividend, which was paid on Tuesday, February 20th. Investors of record on Tuesday, February 6th were paid a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a yield of 0.71%. The ex-dividend date was Monday, February 5th. American Airlines Group’s payout ratio is presently 10.23%.
In related news, Director Matthew J. Hart sold 35,182 shares of the company’s stock in a transaction on Monday, February 5th. The shares were sold at an average price of $51.90, for a total value of $1,825,945.80. Following the completion of the transaction, the director now directly owns 33,258 shares of the company’s stock, valued at approximately $1,726,090.20. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, VP Derek J. Kerr sold 39,662 shares of the company’s stock in a transaction on Monday, January 29th. The stock was sold at an average price of $52.77, for a total transaction of $2,092,963.74. Following the completion of the transaction, the vice president now directly owns 429,046 shares of the company’s stock, valued at $22,640,757.42. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 302,416 shares of company stock valued at $15,826,647. Company insiders own 0.69% of the company’s stock.
A number of large investors have recently modified their holdings of AAL. Johnson Financial Group Inc. bought a new stake in American Airlines Group during the 4th quarter worth about $127,000. NuWave Investment Management LLC bought a new stake in American Airlines Group during the 4th quarter worth about $145,000. Focused Wealth Management Inc bought a new stake in American Airlines Group during the 4th quarter worth about $151,000. Kings Point Capital Management bought a new stake in American Airlines Group during the 4th quarter worth about $190,000. Finally, Delpha Capital Management LLC bought a new stake in American Airlines Group during the 4th quarter worth about $191,000. 80.54% of the stock is currently owned by hedge funds and other institutional investors.
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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