American Airlines Group Inc. (AAL) Stock Rating Lowered by Zacks Investment Research
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.”
Other equities research analysts also recently issued research reports about the company. Buckingham Research reaffirmed a buy rating and issued a $49.00 target price (up previously from $44.00) on shares of American Airlines Group in a research report on Tuesday, July 26th. Deutsche Bank AG raised American Airlines Group from a hold rating to a buy rating and set a $40.00 target price for the company in a research report on Tuesday, July 12th. Morgan Stanley set a $41.00 target price on American Airlines Group and gave the stock a buy rating in a research report on Thursday, August 18th. Vetr downgraded American Airlines Group from a strong-buy rating to a buy rating and set a $41.42 target price for the company. in a research report on Tuesday, August 30th. Finally, Stifel Nicolaus decreased their target price on American Airlines Group from $50.00 to $45.00 and set a buy rating for the company in a research report on Wednesday, October 12th. Five analysts have rated the stock with a sell rating, six have given a hold rating and seven have assigned a buy rating to the stock. American Airlines Group currently has an average rating of Hold and a consensus target price of $42.07.
American Airlines Group (NASDAQ:AAL) opened at 38.58 on Wednesday. American Airlines Group has a 1-year low of $24.85 and a 1-year high of $47.09. The company’s 50-day moving average price is $37.00 and its 200-day moving average price is $34.85. The stock has a market cap of $20.44 billion, a P/E ratio of 3.64 and a beta of 0.97.
American Airlines Group (NASDAQ:AAL) last issued its earnings results on Friday, July 22nd. The airline reported $1.77 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.68 by $0.09. American Airlines Group had a return on equity of 107.21% and a net margin of 16.50%. The company earned $10.40 billion during the quarter, compared to the consensus estimate of $10.27 billion. During the same quarter in the prior year, the business earned $2.62 earnings per share. The company’s revenue was down 4.3% compared to the same quarter last year. Analysts predict that American Airlines Group will post $5.44 EPS for the current year.
In related news, EVP Maya Leibman sold 10,000 shares of the stock in a transaction that occurred on Wednesday, September 14th. The stock was sold at an average price of $36.34, for a total value of $363,400.00. Following the completion of the transaction, the executive vice president now directly owns 196,907 shares of the company’s stock, valued at approximately $7,155,600.38. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Beverly K. Goulet sold 20,000 shares of the stock in a transaction that occurred on Wednesday, September 7th. The stock was sold at an average price of $37.50, for a total value of $750,000.00. Following the completion of the transaction, the executive vice president now directly owns 268,604 shares of the company’s stock, valued at $10,072,650. The disclosure for this sale can be found here. 0.64% of the stock is owned by corporate insiders.
A number of institutional investors have recently modified their holdings of the company. NN Investment Partners Holdings N.V. acquired a new position in shares of American Airlines Group during the first quarter worth about $5,698,000. Bessemer Group Inc. purchased a new position in shares of American Airlines Group during the first quarter worth about $398,000. Landscape Capital Management L.L.C. purchased a new position in shares of American Airlines Group during the first quarter worth about $621,000. Credit Agricole S A raised its position in shares of American Airlines Group by 8.1% in the first quarter. Credit Agricole S A now owns 112,926 shares of the airline’s stock worth $4,631,000 after buying an additional 8,493 shares during the last quarter. Finally, BB&T Securities LLC raised its position in shares of American Airlines Group by 1,238.9% in the first quarter. BB&T Securities LLC now owns 114,378 shares of the airline’s stock worth $4,691,000 after buying an additional 105,835 shares during the last quarter. 74.63% of the stock is owned by institutional investors and hedge funds.
About American Airlines Group
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).
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