American Airlines Group (AAL) Shares Gap Down Following Analyst Downgrade

American Airlines Group Inc (NASDAQ:AAL)’s share price gapped down before the market opened on Thursday after ValuEngine downgraded the stock from a sell rating to a strong sell rating. The stock had previously closed at $36.22, but opened at $33.42. American Airlines Group shares last traded at $32.04, with a volume of 19716235 shares changing hands.

Several other equities analysts have also commented on the stock. Cowen reaffirmed an “outperform” rating and set a $42.00 target price (down previously from $43.00) on shares of American Airlines Group in a report on Thursday. Imperial Capital cut their price target on shares of American Airlines Group from $55.00 to $45.00 and set an “outperform” rating on the stock in a report on Wednesday. They noted that the move was a valuation call. Zacks Investment Research raised shares of American Airlines Group from a “hold” rating to a “buy” rating and set a $38.00 price target on the stock in a report on Thursday, December 13th. Wolfe Research lowered shares of American Airlines Group from an “outperform” rating to a “market perform” rating in a report on Friday, December 7th. Finally, Citigroup raised their price target on shares of American Airlines Group from $53.00 to $56.00 and gave the stock a “buy” rating in a report on Thursday, November 29th. One research analyst has rated the stock with a sell rating, five have assigned a hold rating and fourteen have issued a buy rating to the stock. The company currently has a consensus rating of “Buy” and an average target price of $48.24.

In related news, Director John T. Cahill bought 25,000 shares of the company’s stock in a transaction dated Monday, October 29th. The stock was purchased at an average cost of $33.47 per share, with a total value of $836,750.00. Following the transaction, the director now owns 6,531 shares in the company, valued at approximately $218,592.57. The purchase was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Jeffrey D. Benjamin bought 15,000 shares of the company’s stock in a transaction dated Monday, November 19th. The stock was bought at an average cost of $35.69 per share, with a total value of $535,350.00. Following the completion of the transaction, the director now owns 22,146 shares in the company, valued at approximately $790,390.74. The disclosure for this purchase can be found here. Company insiders own 0.70% of the company’s stock.

Large investors have recently bought and sold shares of the company. Primecap Management Co. CA lifted its position in American Airlines Group by 16.3% during the 3rd quarter. Primecap Management Co. CA now owns 68,944,981 shares of the airline’s stock valued at $2,849,496,000 after acquiring an additional 9,665,167 shares during the period. Lansdowne Partners UK LLP lifted its position in American Airlines Group by 23.5% during the 3rd quarter. Lansdowne Partners UK LLP now owns 7,391,768 shares of the airline’s stock valued at $305,501,000 after acquiring an additional 1,407,699 shares during the period. Capital World Investors lifted its position in American Airlines Group by 653.7% during the 3rd quarter. Capital World Investors now owns 6,572,000 shares of the airline’s stock valued at $271,621,000 after acquiring an additional 5,700,000 shares during the period. Bank of New York Mellon Corp lifted its position in American Airlines Group by 19.3% during the 3rd quarter. Bank of New York Mellon Corp now owns 3,270,123 shares of the airline’s stock valued at $135,155,000 after acquiring an additional 528,532 shares during the period. Finally, RWC Asset Management LLP lifted its position in American Airlines Group by 40.1% during the 3rd quarter. RWC Asset Management LLP now owns 2,341,296 shares of the airline’s stock valued at $96,766,000 after acquiring an additional 669,842 shares during the period. 81.14% of the stock is owned by hedge funds and other institutional investors.

The stock has a market cap of $15.39 billion, a PE ratio of 6.52, a PEG ratio of 0.79 and a beta of 1.32.

American Airlines Group (NASDAQ:AAL) last released its quarterly earnings data on Thursday, October 25th. The airline reported $1.13 earnings per share for the quarter, beating analysts’ consensus estimates of $1.12 by $0.01. The business had revenue of $11.56 billion during the quarter, compared to analyst estimates of $11.55 billion. American Airlines Group had a net margin of 3.06% and a return on equity of 568.86%. Equities analysts anticipate that American Airlines Group Inc will post 4.57 EPS for the current fiscal year.

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American Airlines Group Company Profile (NASDAQ:AAL)

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, 2017, the company operated a mainline fleet of 948 aircraft. It serves 350 destinations in approximately 50 countries, principally from its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, and Phoenix, as well as in 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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