American Airlines Group Inc. (NASDAQ:AAL) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Wednesday.
According to Zacks, “American Airlines posted disappointing traffic numbers for the month of September. Load factor declined in the month as the reduction in traffic was greater than the capacity contraction. Moreover, multiple labor deals inked by the company in recent times are expected to hurt its near-term earnings as costs escalate. The carrier expects unit costs for 2016 to increase in the band of 5–7%, on a year-over-year basis. We expect the company’s third-quarter results, which are scheduled to be released on Oct 20, to be hampered by higher costs. Moreover, headwinds like the surge in terror attacks, a weak balance sheet and the uncertainty following Brexit are other challenges faced by the carrier. We are, however, positive on the U.S. DOT's decision to grant American Airlines the permission to initiate commercial flights to Havana.”
A number of other analysts have also commented on the stock. Bank of America Corp. lowered shares of American Airlines Group from a “neutral” rating to an “underperform” rating in a research report on Thursday, June 16th. Credit Suisse Group AG lowered shares of American Airlines Group from an “outperform” rating to an “underperform” rating and cut their price objective for the stock from $47.00 to $28.00 in a research report on Wednesday, July 6th. Cowen and Company reissued an “outperform” rating and issued a $43.00 price objective on shares of American Airlines Group in a research report on Wednesday, August 31st. Vetr upgraded shares of American Airlines Group from a “buy” rating to a “strong-buy” rating and set a $39.50 target price on the stock in a report on Tuesday, September 27th. Finally, Buckingham Research restated a “buy” rating and set a $49.00 target price (up from $44.00) on shares of American Airlines Group in a report on Tuesday, July 26th. Five equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and seven have assigned a buy rating to the stock. The company presently has a consensus rating of “Hold” and a consensus price target of $42.00.
American Airlines Group (NASDAQ:AAL) opened at 38.20 on Wednesday. The firm has a 50-day moving average of $36.78 and a 200 day moving average of $34.93. American Airlines Group has a 1-year low of $24.85 and a 1-year high of $47.09. The firm has a market cap of $20.24 billion, a price-to-earnings ratio of 3.61 and a beta of 0.97.
American Airlines Group (NASDAQ:AAL) last announced its quarterly earnings data on Friday, July 22nd. The airline reported $1.77 EPS for the quarter, topping the Zacks’ consensus estimate of $1.68 by $0.09. The business had revenue of $10.40 billion for the quarter, compared to analyst estimates of $10.27 billion. American Airlines Group had a net margin of 16.50% and a return on equity of 107.21%. The firm’s revenue for the quarter was down 4.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.62 earnings per share. Analysts expect that American Airlines Group will post $5.44 earnings per share for the current fiscal year.
In related news, EVP Maya Leibman sold 10,000 shares of the company’s stock in a transaction dated Wednesday, September 14th. The shares were sold at an average price of $36.34, for a total transaction of $363,400.00. Following the completion of the sale, the executive vice president now owns 196,907 shares of the company’s stock, valued at $7,155,600.38. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Beverly K. Goulet sold 20,000 shares of the company’s stock in a transaction dated Wednesday, September 7th. The stock was sold at an average price of $37.50, for a total transaction of $750,000.00. Following the sale, the executive vice president now directly owns 268,604 shares of the company’s stock, valued at approximately $10,072,650. The disclosure for this sale can be found here. Corporate insiders own 0.64% of the company’s stock.
A number of large investors have recently bought and sold shares of the company. Cribstone Capital Management LLC purchased a new stake in American Airlines Group during the second quarter valued at $108,000. Zions Bancorporation boosted its stake in American Airlines Group by 4,368.9% in the first quarter. Zions Bancorporation now owns 4,022 shares of the airline’s stock valued at $165,000 after buying an additional 3,932 shares in the last quarter. Westbourne Investment Advisors Inc. purchased a new stake in American Airlines Group during the second quarter valued at $115,000. Checchi Capital Advisers LLC boosted its stake in American Airlines Group by 0.9% in the second quarter. Checchi Capital Advisers LLC now owns 4,145 shares of the airline’s stock valued at $117,000 after buying an additional 37 shares in the last quarter. Finally, Evercore Wealth Management LLC boosted its stake in American Airlines Group by 60.1% in the second quarter. Evercore Wealth Management LLC now owns 4,601 shares of the airline’s stock valued at $130,000 after buying an additional 1,727 shares in the last quarter. 74.62% of the stock is owned by institutional investors and hedge funds.
American Airlines Group Company Profile
American Airlines Group Inc (AAG) is a holding company whose primary business activity is the operation of a network air carrier through its subsidiaries, American Airlines, Inc (American) and its regional subsidiaries, Envoy Aviation Group Inc (Envoy), Piedmont Airlines, Inc (Piedmont) and PSA Airlines, Inc (PSA).