Grupo Aeromexico (NYSE:AERO) Stock Price Down 8.2% on Disappointing Earnings

Grupo Aeromexico (NYSE:AERO)’s stock price dropped 8.2% during mid-day trading on Tuesday following a dissappointing earnings announcement. The stock traded as low as $14.25 and last traded at $14.5850. 61,758 shares traded hands during mid-day trading, a decline of 83% from the average daily volume of 366,689 shares. The stock had previously closed at $15.89.

The company reported $0.28 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.29 by ($0.01). The company had revenue of $1.62 billion during the quarter. Grupo Aeromexico had a net margin of 3.78% and a negative return on equity of 25.10%.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the stock. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Grupo Aeromexico in a research note on Thursday. Zacks Research cut Grupo Aeromexico from a “strong-buy” rating to a “hold” rating in a research note on Thursday, August 27th. Finally, Wall Street Zen cut Grupo Aeromexico from a “buy” rating to a “hold” rating in a research note on Tuesday, July 28th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $28.06.

Insiders Place Their Bets

In related news, insider Aaron Murray sold 355,600 shares of the company’s stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of $1.58, for a total value of $561,848.00. Following the completion of the sale, the insider directly owned 1,262,530 shares of the company’s stock, valued at $1,994,797.40. This represents a 21.98% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in AERO. Oaktree Capital Management LP lifted its stake in shares of Grupo Aeromexico by 5.1% during the 1st quarter. Oaktree Capital Management LP now owns 3,968,686 shares of the company’s stock worth $55,601,000 after purchasing an additional 191,700 shares during the last quarter. Bank of America Corp DE lifted its position in shares of Grupo Aeromexico by 25.8% during the first quarter. Bank of America Corp DE now owns 1,439,555 shares of the company’s stock valued at $20,168,000 after buying an additional 295,646 shares during the last quarter. Walleye Capital LLC purchased a new stake in shares of Grupo Aeromexico during the first quarter valued at about $2,969,000. Rubric Capital Management LP bought a new stake in shares of Grupo Aeromexico in the 1st quarter valued at about $6,544,000. Finally, The Manufacturers Life Insurance Company bought a new stake in shares of Grupo Aeromexico in the 1st quarter valued at about $3,502,000.

Grupo Aeromexico Stock Performance

The business’s fifty day moving average price is $15.43 and its two-hundred day moving average price is $15.84. The firm has a market capitalization of $1.99 billion and a P/E ratio of 34.69.

About Grupo Aeromexico

Grupo Aeroméxico, SAB. de C.V. is a Mexico-based airline holding company and the parent of Aeroméxico, one of Mexico’s principal air carriers. The company provides scheduled passenger transportation, air cargo services and related aviation offerings, serving destinations within Mexico and international markets.

Aeroméxico operates a network connecting Mexico with the United States, Canada, Central and South America, Europe and other selected international destinations. Its services are supported by regional operations, including Aeroméxico Connect, and the company is a member of the SkyTeam airline alliance, providing customers with access to a broader global network through partner carriers.

Founded in 1934, Aeroméxico is headquartered in Mexico City and operates its principal hub at Mexico City International Airport, with additional focus cities and operating bases across Mexico.