American Airlines Group, Inc. (AAL) Downgraded by Zacks Investment Research to Strong Sell
Zacks Investment Research cut shares of American Airlines Group, Inc. (NASDAQ:AAL) from a hold rating to a strong sell rating in a research report sent to investors on Monday morning.
According to Zacks, “Shares of American Airlines have struggled so far this year due to multiple headwinds. The stock has been up a mere 1.7% year to date, as against the industry’s rally of 8.9% in the same period. The recent weather-related disruptions have also hurt American Airlines like most other carriers. High fuel and labor costs are likely to hurt its third-quarter results as well. Consequently, the company trimmed its third-quarter unit revenue view. The company's high debt levels too raises concerns. In fact, the negative sentiment surrounding the stock can be gauged from the fact that the Zacks Consensus Estimate for third-quarter earnings has been revised 17.9% downward over the last 30 days. Nevertheless, we are pleased with the company's efforts to reward shareholders. Efforts to modernize its fleet also raise optimism.”
AAL has been the topic of a number of other research reports. Sanford C. Bernstein reissued a hold rating on shares of American Airlines Group in a report on Monday, August 7th. Cowen and Company reaffirmed an outperform rating and set a $55.00 target price on shares of American Airlines Group in a report on Tuesday, September 26th. BidaskClub lowered American Airlines Group from a buy rating to a hold rating in a report on Sunday, July 30th. Bank of America Corporation increased their price target on American Airlines Group to $61.00 and gave the stock a neutral rating in a research report on Tuesday, August 1st. Finally, Stifel Nicolaus reiterated a buy rating and set a $95.00 price target on shares of American Airlines Group in a research report on Tuesday, August 22nd. Two research analysts have rated the stock with a sell rating, eight have given a hold rating, nine have issued a buy rating and two have assigned a strong buy rating to the stock. American Airlines Group currently has a consensus rating of Buy and a consensus target price of $56.86.
Shares of American Airlines Group (AAL) opened at 47.73 on Monday. The firm has a market capitalization of $23.24 billion, a PE ratio of 11.85 and a beta of 0.99. The company has a 50 day moving average price of $45.85 and a 200-day moving average price of $46.97. American Airlines Group has a 12 month low of $36.80 and a 12 month high of $54.48. American Airlines Group also saw unusually large options trading activity on Monday. Traders purchased 1,841 put options on the company. This represents an increase of 221% compared to the typical daily volume of 574 put options.
American Airlines Group (NASDAQ:AAL) last posted its quarterly earnings results on Friday, July 28th. The airline reported $1.92 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $1.87 by $0.05. American Airlines Group had a net margin of 5.02% and a return on equity of 83.58%. The company had revenue of $11.11 billion for the quarter, compared to the consensus estimate of $11.08 billion. During the same period last year, the firm posted $1.77 EPS. The company’s revenue for the quarter was up 7.2% on a year-over-year basis. Equities research analysts expect that American Airlines Group will post $4.69 EPS for the current fiscal year.
In other news, EVP Maya Leibman sold 10,000 shares of the company’s stock in a transaction on Friday, August 11th. The stock was sold at an average price of $47.97, for a total value of $479,700.00. Following the completion of the sale, the executive vice president now owns 161,476 shares in the company, valued at $7,746,003.72. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Elise R. Eberwein sold 50,000 shares of the company’s stock in a transaction on Wednesday, August 2nd. The shares were sold at an average price of $50.35, for a total value of $2,517,500.00. Following the completion of the sale, the executive vice president now owns 312,368 shares of the company’s stock, valued at approximately $15,727,728.80. The disclosure for this sale can be found here. Insiders sold 63,476 shares of company stock valued at $3,159,738 over the last quarter. Insiders own 0.69% of the company’s stock.
A number of large investors have recently added to or reduced their stakes in AAL. BlackRock Inc. raised its position in American Airlines Group by 4,435.0% in the first quarter. BlackRock Inc. now owns 28,607,876 shares of the airline’s stock worth $1,210,114,000 after acquiring an additional 27,977,045 shares in the last quarter. FMR LLC lifted its holdings in American Airlines Group by 56.3% in the 1st quarter. FMR LLC now owns 26,825,165 shares of the airline’s stock valued at $1,134,705,000 after acquiring an additional 9,667,389 shares during the last quarter. Primecap Management Co. CA lifted its holdings in American Airlines Group by 3.4% in the 1st quarter. Primecap Management Co. CA now owns 46,745,831 shares of the airline’s stock valued at $1,977,349,000 after acquiring an additional 1,524,040 shares during the last quarter. Cyrus Capital Partners L.P. acquired a new stake in American Airlines Group in the 2nd quarter valued at about $75,480,000. Finally, Skandinaviska Enskilda Banken AB publ lifted its holdings in American Airlines Group by 4,841.9% in the 1st quarter. Skandinaviska Enskilda Banken AB publ now owns 943,900 shares of the airline’s stock valued at $39,927,000 after acquiring an additional 924,800 shares during the last quarter. 81.56% 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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