American Airlines Group (AAL) Upgraded by Zacks Investment Research to “Buy”
Zacks Investment Research upgraded shares of American Airlines Group (NASDAQ:AAL) from a hold rating to a buy rating in a research note issued to investors on Tuesday morning. Zacks Investment Research currently has $56.00 target price on the airline’s stock.
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 research firms have also recently commented on AAL. JPMorgan Chase & Co. raised shares of American Airlines Group from a neutral rating to an overweight rating and set a $65.00 target price for the company in a research report on Wednesday, November 1st. Stephens reaffirmed a hold rating and issued a $61.00 target price on shares of American Airlines Group in a research report on Friday, January 26th. BidaskClub raised shares of American Airlines Group from a hold rating to a buy rating in a research report on Wednesday, December 27th. Morgan Stanley raised their target price on shares of American Airlines Group from $58.00 to $60.00 and gave the stock an equal weight rating in a research report on Friday, January 26th. Finally, Buckingham Research reaffirmed a buy rating and issued a $71.00 target price (up from $66.00) on shares of American Airlines Group in a research report on Thursday, January 11th. One investment 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’s stock. The company has a consensus rating of Buy and a consensus target price 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 net margin of 4.55% and a return on equity of 63.78%. The firm had revenue of $10.60 billion during the quarter, compared to analysts’ expectations of $10.59 billion. During the same period last year, the company posted $0.92 EPS. The company’s quarterly revenue was up 8.3% compared to the same quarter last year. research analysts predict that American Airlines Group will post 5.8 earnings per share for the current year.
The firm also recently declared a quarterly dividend, which will be paid on Tuesday, February 20th. Investors of record on Tuesday, February 6th will be given a dividend of $0.10 per share. The ex-dividend date of this dividend is Monday, February 5th. This represents a $0.40 dividend on an annualized basis and a yield of 0.79%. American Airlines Group’s dividend payout ratio (DPR) is currently 10.23%.
In other American Airlines Group news, Director Alberto Ibarguen sold 4,229 shares of American Airlines Group 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Matthew J. Hart sold 35,182 shares of American Airlines Group stock in a transaction dated Monday, February 5th. The stock was sold at an average price of $51.90, for a total transaction 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 $1,726,090.20. The disclosure for this sale can be found here. Over the last three months, insiders have sold 306,645 shares of company stock valued at $16,027,947. 0.69% of the stock is currently owned by corporate insiders.
A number of institutional investors have recently modified their holdings of the business. LSV Asset Management raised its holdings in American Airlines Group by 1.1% in the fourth quarter. LSV Asset Management now owns 3,758,992 shares of the airline’s stock worth $195,580,000 after buying an additional 42,460 shares during the last quarter. Boston Partners raised its holdings in American Airlines Group by 3.8% in the fourth quarter. Boston Partners now owns 2,484,614 shares of the airline’s stock worth $129,274,000 after buying an additional 91,833 shares during the last quarter. Hosking Partners LLP raised its holdings in American Airlines Group by 0.4% in the third quarter. Hosking Partners LLP now owns 2,344,886 shares of the airline’s stock worth $111,359,000 after buying an additional 9,522 shares during the last quarter. Gendell Jeffrey L raised its holdings in American Airlines Group by 18.7% in the fourth quarter. Gendell Jeffrey L now owns 1,772,696 shares of the airline’s stock worth $92,233,000 after buying an additional 278,943 shares during the last quarter. Finally, Schwab Charles Investment Management Inc. raised its holdings in American Airlines Group by 2.7% in the fourth quarter. Schwab Charles Investment Management Inc. now owns 1,591,044 shares of the airline’s stock worth $82,783,000 after buying an additional 42,130 shares during the last quarter. 80.93% of the stock is owned by institutional investors and hedge funds.
COPYRIGHT VIOLATION WARNING: “American Airlines Group (AAL) Upgraded by Zacks Investment Research to “Buy”” was posted by Watch List News and is owned by of Watch List News. If you are viewing this report on another site, it was illegally copied and republished in violation of United States and international copyright & trademark legislation. The correct version of this report can be read at https://www.watchlistnews.com/american-airlines-group-aal-upgraded-by-zacks-investment-research-to-buy/1864956.html.
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.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for American Airlines Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for American Airlines Group and related companies with MarketBeat.com's FREE daily email newsletter.