Zacks Investment Research Downgrades American Airlines Group (AAL) to Hold

American Airlines Group (NASDAQ:AAL) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Monday.

According to Zacks, “American Airlines 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. However, high costs have the potential to limit bottom-line growth going forward. Consolidated cost per available seat miles (excluding special items and fuel) is expected to increase 4% in the first quarter of 2018. Further, adding to its woes are its high debt levels. In fact, shares of the company have underperformed its industry in the last three months.”

AAL has been the topic of a number of other research reports. JPMorgan Chase & Co. upgraded shares of American Airlines Group from a “neutral” rating to an “overweight” rating and set a $65.00 price target on the stock in a report on Wednesday, November 1st. Morgan Stanley restated an “equal weight” rating on shares of American Airlines Group in a research report on Monday, November 13th. Bank of America upgraded shares of American Airlines Group from an “underperform” rating to a “buy” rating and set a $64.00 price objective on the stock in a research report on Tuesday, January 9th. Buckingham Research restated a “buy” rating on shares of American Airlines Group in a research report on Friday, October 27th. Finally, Stephens restated a “hold” rating and set a $62.00 price objective on shares of American Airlines Group in a research report on Wednesday, January 10th. One analyst has rated the stock with a sell rating, six have given a hold rating, ten have given a buy rating and two have given a strong buy rating to the stock. American Airlines Group currently has a consensus rating of “Buy” and an average price target of $61.56.

Shares of American Airlines Group (NASDAQ:AAL) traded up $1.10 on Monday, reaching $49.46. 1,310,068 shares of the company’s stock were exchanged, compared to its average volume of 5,594,687. The stock has a market capitalization of $23,140.00, a PE ratio of 12.65, a PEG ratio of 1.04 and a beta of 0.96. The company has a current ratio of 0.61, a quick ratio of 0.52 and a debt-to-equity ratio of 5.73. American Airlines Group has a twelve month low of $39.21 and a twelve month high of $59.08.

American Airlines Group (NASDAQ:AAL) last announced its quarterly earnings data on Thursday, January 25th. The airline reported $0.95 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.92 by $0.03. The business had revenue of $10.60 billion for the quarter, compared to analysts’ expectations of $10.59 billion. American Airlines Group had a net margin of 4.55% and a return on equity of 63.78%. The business’s revenue was up 8.3% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.92 earnings per share. sell-side analysts forecast that American Airlines Group will post 5.8 EPS for the current fiscal year.

In other American Airlines Group news, CEO W Douglas Parker sold 224,572 shares of the stock in a transaction that occurred on Tuesday, January 2nd. The shares were sold at an average price of $52.32, for a total value of $11,749,607.04. Following the transaction, the chief executive officer now directly owns 1,925,242 shares in the company, valued at $100,728,661.44. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Matthew J. Hart sold 35,182 shares of the stock in a transaction that occurred on 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 owns 33,258 shares in the company, valued at $1,726,090.20. The disclosure for this sale can be found here. Insiders sold 306,645 shares of company stock worth $16,027,947 over the last quarter. Insiders own 0.69% of the company’s stock.

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. WFG Advisors LP raised its position in shares of American Airlines Group by 28.1% during the 2nd quarter. WFG Advisors LP now owns 2,367 shares of the airline’s stock valued at $119,000 after purchasing an additional 519 shares during the period. Exane Derivatives raised its position in shares of American Airlines Group by 416.3% during the 3rd quarter. Exane Derivatives now owns 2,592 shares of the airline’s stock valued at $123,000 after purchasing an additional 2,090 shares during the period. Blue Granite Capital LLC bought a new stake in shares of American Airlines Group during the 3rd quarter valued at $131,000. NuWave Investment Management LLC bought a new stake in shares of American Airlines Group during the 4th quarter valued at $145,000. Finally, MPS Loria Financial Planners LLC bought a new stake in shares of American Airlines Group during the 2nd quarter valued at $167,000. Institutional investors and hedge funds own 80.93% of the company’s stock.

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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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