American Airlines Group, Inc. (NASDAQ:AAL) Downgraded to “Hold” at Zacks Investment Research
American Airlines Group, Inc. (NASDAQ:AAL) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Monday.
According to Zacks, “American Airlines performed well in the second-quarter of 2017 reporting better-than-expected earnings per share and revenues. Both metrics also improved on a year-over-year basis. Results were aided by strong passenger demand. Total revenue per available seat miles (TRASM: a key measure of unit revenue) improved 5.7% in the reported quarter. The company’s efforts to reward shareholders also raise optimism in the stock. During the second quarter, the company returned $500 million to its shareholders through dividends and buyback. Shares of the company have outperformed its industry in the last three months. However, high costs are likely to continue hurting bottom-line growth. Moreover, operating expenses in the second quarter climbed 11.1% due to the rise in fuel costs. American Airlines is also a highly leveraged company. “
Several other brokerages have also recently weighed in on AAL. BidaskClub cut American Airlines Group from a “buy” rating to a “hold” rating in a research note on Sunday, July 30th. Sanford C. Bernstein reaffirmed a “hold” rating on shares of American Airlines Group in a research note on Monday. Bank of America Corporation upped their price target on American Airlines Group to $61.00 and gave the stock a “neutral” rating in a research note on Tuesday, August 1st. J P Morgan Chase & Co raised American Airlines Group from a “neutral” rating to an “overweight” rating and upped their price target for the stock from $52.00 to $61.00 in a research note on Tuesday, August 1st. Finally, Buckingham Research reaffirmed a “buy” rating and issued a $70.00 price target (up from $68.00) on shares of American Airlines Group in a research note on Monday, July 31st. Two research analysts have rated the stock with a sell rating, nine have assigned a hold rating, nine have given a buy rating and one has given a strong buy rating to the company. The company currently has an average rating of “Hold” and a consensus price target of $53.57.
Shares of American Airlines Group (AAL) traded down 0.43% during mid-day trading on Monday, hitting $50.58. 3,016,726 shares of the stock traded hands. American Airlines Group has a 52 week low of $33.68 and a 52 week high of $54.48. The stock has a market cap of $24.63 billion, a price-to-earnings ratio of 12.56 and a beta of 0.96. The firm’s 50-day moving average is $50.82 and its 200-day moving average is $46.72.
American Airlines Group (NASDAQ:AAL) last posted its earnings results on Friday, July 28th. The airline reported $1.92 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.87 by $0.05. American Airlines Group had a return on equity of 83.58% and a net margin of 5.02%. The firm had revenue of $11.11 billion for the quarter, compared to analysts’ expectations of $11.08 billion. During the same period in the previous year, the firm earned $1.77 earnings per share. The business’s revenue was up 7.2% compared to the same quarter last year. On average, analysts forecast that American Airlines Group will post $5.13 earnings per share for the current year.
In other American Airlines Group news, EVP Elise R. Eberwein sold 50,000 shares of the company’s stock in a transaction dated Wednesday, August 2nd. The stock was 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 in the company, valued at $15,727,728.80. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, VP Derek J. Kerr sold 104,223 shares of the company’s stock in a transaction dated Friday, June 2nd. The stock was sold at an average price of $50.00, for a total value of $5,211,150.00. Following the completion of the sale, the vice president now owns 591,195 shares of the company’s stock, valued at approximately $29,559,750. The disclosure for this sale can be found here. In the last three months, insiders sold 211,480 shares of company stock worth $10,516,971. 0.69% of the stock is owned by corporate insiders.
Hedge funds have recently modified their holdings of the company. BlackRock Inc. boosted its stake in shares of 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 buying an additional 27,977,045 shares during the last quarter. FMR LLC boosted its stake in shares of American Airlines Group by 56.3% in the first quarter. FMR LLC now owns 26,825,165 shares of the airline’s stock worth $1,134,705,000 after buying an additional 9,667,389 shares during the last quarter. Primecap Management Co. CA boosted its stake in shares of American Airlines Group by 3.4% in the first quarter. Primecap Management Co. CA now owns 46,745,831 shares of the airline’s stock worth $1,977,349,000 after buying an additional 1,524,040 shares during the last quarter. Skandinaviska Enskilda Banken AB publ boosted its stake in shares of American Airlines Group by 4,841.9% in the first quarter. Skandinaviska Enskilda Banken AB publ now owns 943,900 shares of the airline’s stock worth $39,927,000 after buying an additional 924,800 shares during the last quarter. Finally, LSV Asset Management boosted its stake in shares of American Airlines Group by 34.3% in the first quarter. LSV Asset Management now owns 3,150,482 shares of the airline’s stock worth $133,265,000 after buying an additional 804,745 shares during the last quarter. Institutional investors and hedge funds own 81.51% of the company’s stock.
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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