American Airlines Group, Inc. (NASDAQ:AAL) was upgraded by Zacks Investment Research from a “strong sell” rating to a “hold” rating in a research note issued to investors on Monday.
According to Zacks, “American Airlines' revenues in the third quarter rose 2.7% year over year. Strong demand for air travel coupled with improving yields drove the top line in the quarter. We are impressed by American Airlines' efforts to modernize its fleet. During the third quarter, the carrier invested more than $900 million on 13 new planes and three regional ones. The carrier's efforts to reward shareholders through share buybacks and dividend payments are also impressive. However, the carrier's earnings declined significantly in the third quarter due to higher costs and the recent hurricanes. American Airlines had to cancel approximately 8000 flights in the third quarter due to the hurricanes. With the company inking multiple labor deals, labor costs have spiked. American Airlines is also a highly leveraged company. Shares of the company have struggled so far this year.”
Other equities analysts also recently issued reports about the company. BidaskClub upgraded American Airlines Group from a “strong sell” rating to a “sell” rating in a research report on Thursday, September 14th. Morgan Stanley restated an “equal weight” rating and set a $52.00 price objective (down from $54.00) on shares of American Airlines Group in a research report on Thursday, August 17th. Stifel Nicolaus restated a “buy” rating and set a $95.00 price objective on shares of American Airlines Group in a research report on Tuesday, August 22nd. Sanford C. Bernstein restated a “hold” rating on shares of American Airlines Group in a research report on Monday, August 7th. Finally, Buckingham Research restated a “buy” rating and set a $70.00 price objective (up from $68.00) on shares of American Airlines Group in a research report on Monday, July 31st. Two research analysts have rated the stock with a sell rating, seven have assigned a hold rating, eight have given a buy rating and two have given a strong buy rating to the company. American Airlines Group has an average rating of “Buy” and an average target price of $58.47.
Shares of American Airlines Group (AAL) opened at $45.81 on Monday. American Airlines Group has a 12 month low of $39.21 and a 12 month high of $54.48. The company has a debt-to-equity ratio of 5.63, a quick ratio of 0.57 and a current ratio of 0.65. The company has a market capitalization of $21,886.55, a PE ratio of 9.39 and a beta of 0.97.
American Airlines Group (NASDAQ:AAL) last issued its quarterly earnings data on Thursday, October 26th. The airline reported $1.42 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $1.40 by $0.02. American Airlines Group had a return on equity of 64.92% and a net margin of 4.71%. The company had revenue of $10.88 billion during the quarter, compared to the consensus estimate of $10.88 billion. During the same period last year, the company earned $2.80 earnings per share. The firm’s revenue was up 2.7% compared to the same quarter last year. sell-side analysts anticipate that American Airlines Group will post 4.64 EPS for the current fiscal year.
In related news, Director Ray M. Robinson sold 3,476 shares of American Airlines Group stock in a transaction that occurred on Thursday, September 14th. The stock was sold at an average price of $46.76, for a total transaction of $162,537.76. Following the transaction, the director now owns 29,938 shares of the company’s stock, valued at $1,399,900.88. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.69% of the stock is owned by insiders.
A number of hedge funds have recently bought and sold shares of AAL. MCF Advisors LLC purchased a new position in American Airlines Group in the second quarter worth $106,000. Westside Investment Management Inc. boosted its position in American Airlines Group by 3.5% in the second quarter. Westside Investment Management Inc. now owns 2,116 shares of the airline’s stock worth $111,000 after purchasing an additional 72 shares during the last quarter. First Manhattan Co. boosted its position in American Airlines Group by 3.3% in the second quarter. First Manhattan Co. now owns 2,380 shares of the airline’s stock worth $119,000 after purchasing an additional 75 shares during the last quarter. WFG Advisors LP boosted its position in American Airlines Group by 28.1% in the second quarter. WFG Advisors LP now owns 2,367 shares of the airline’s stock worth $119,000 after purchasing an additional 519 shares during the last quarter. Finally, Exane Derivatives boosted its position in American Airlines Group by 416.3% in the third quarter. Exane Derivatives now owns 2,592 shares of the airline’s stock worth $123,000 after purchasing an additional 2,090 shares during the last quarter. 83.51% of the stock is currently owned by institutional investors and hedge funds.
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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