American Airlines Group (NASDAQ:AAL) Cut to “Sell” at BidaskClub

BidaskClub lowered shares of American Airlines Group (NASDAQ:AAL) from a hold rating to a sell rating in a research note published on Friday, BidAskClub reports.

Several other equities analysts have also recently weighed in on AAL. Morgan Stanley cut shares of American Airlines Group from an equal weight rating to an underweight rating and lowered their price objective for the stock from $40.00 to $26.00 in a research note on Monday, May 20th. ValuEngine lowered shares of American Airlines Group from a sell rating to a strong sell rating in a report on Saturday, July 27th. Barclays cut their price objective on shares of American Airlines Group from $60.00 to $48.00 and set an overweight rating for the company in a report on Monday, May 20th. Cowen reaffirmed an outperform rating and set a $41.00 price objective (down from $42.00) on shares of American Airlines Group in a report on Monday, April 29th. Finally, Imperial Capital reaffirmed an in-line rating and set a $41.00 price objective (down from $43.00) on shares of American Airlines Group in a report on Tuesday, April 30th. Four research analysts have rated the stock with a sell rating, six have issued a hold rating and eleven have issued a buy rating to the stock. The company presently has an average rating of Hold and a consensus price target of $41.19.

AAL stock traded up $0.38 during trading on Friday, hitting $25.79. 8,826,800 shares of the stock traded hands, compared to its average volume of 6,954,493. American Airlines Group has a 1 year low of $25.14 and a 1 year high of $43.89. The firm’s 50 day moving average is $31.27 and its two-hundred day moving average is $32.48. The stock has a market cap of $11.62 billion, a price-to-earnings ratio of 5.67, a price-to-earnings-growth ratio of 0.31 and a beta of 1.66.

American Airlines Group (NASDAQ:AAL) last announced its quarterly earnings results on Thursday, July 25th. The airline reported $1.82 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.77 by $0.05. The firm had revenue of $11.96 billion for the quarter, compared to the consensus estimate of $11.98 billion. American Airlines Group had a net margin of 3.35% and a negative return on equity of 588.10%. The business’s quarterly revenue was up 2.7% compared to the same quarter last year. During the same quarter last year, the firm posted $1.63 EPS. As a group, equities research analysts anticipate that American Airlines Group will post 4.91 EPS for the current fiscal year.

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, August 21st. Investors of record on Wednesday, August 7th will be issued a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a dividend yield of 1.55%. The ex-dividend date of this dividend is Tuesday, August 6th. American Airlines Group’s dividend payout ratio (DPR) is presently 8.79%.

In other news, CEO W Douglas Parker acquired 50,000 shares of the company’s stock in a transaction on Tuesday, June 4th. The stock was bought at an average cost of $28.09 per share, with a total value of $1,404,500.00. Following the completion of the purchase, the chief executive officer now directly owns 2,201,636 shares of the company’s stock, valued at $61,843,955.24. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Ray M. Robinson sold 6,930 shares of American Airlines Group stock in a transaction on Friday, August 2nd. The stock was sold at an average price of $29.11, for a total transaction of $201,732.30. Following the transaction, the director now directly owns 29,754 shares of the company’s stock, valued at $866,138.94. The disclosure for this sale can be found here. Over the last three months, insiders purchased 99,000 shares of company stock valued at $2,787,070. 0.86% of the stock is currently owned by insiders.

Hedge funds and other institutional investors have recently bought and sold shares of the business. Steward Partners Investment Advisory LLC purchased a new position in American Airlines Group during the second quarter worth $25,000. NEXT Financial Group Inc boosted its stake in American Airlines Group by 4,545.5% during the second quarter. NEXT Financial Group Inc now owns 1,022 shares of the airline’s stock worth $33,000 after buying an additional 1,000 shares during the period. Global Wealth Management Investment Advisory Inc. boosted its stake in American Airlines Group by 69.4% during the first quarter. Global Wealth Management Investment Advisory Inc. now owns 1,067 shares of the airline’s stock worth $34,000 after buying an additional 437 shares during the period. Howe & Rusling Inc. purchased a new position in American Airlines Group during the first quarter worth $39,000. Finally, CWM LLC purchased a new position in American Airlines Group during the first quarter worth $43,000. 78.83% of the stock is owned by institutional investors.

American Airlines Group Company Profile

American Airlines Group Inc, through its subsidiaries, operates as a network air carrier. It provides scheduled air transportation services for passengers and cargo. As of December 31, 2018, the company operated a mainline fleet of 956 aircraft. It serves 350 destinations in approximately 50 countries, principally from its hubs in Charlotte, Chicago, Dallas/Fort Worth, London Heathrow, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, DC The company was formerly known as AMR Corporation and changed its name to American Airlines Group Inc in December 2013.

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Analyst Recommendations for American Airlines Group (NASDAQ:AAL)

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