BidaskClub Lowers American Airlines Group (NASDAQ:AAL) to Sell

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BidaskClub cut shares of American Airlines Group (NASDAQ:AAL) from a hold rating to a sell rating in a report released on Friday, BidAskClub reports.

Other analysts also recently issued reports about the stock. Buckingham Research cut their price objective on shares of American Airlines Group from $45.00 to $43.00 and set a buy rating on the stock in a research report on Thursday, July 11th. Macquarie downgraded shares of American Airlines Group from an outperform rating to a neutral rating and cut their price objective for the company from $43.00 to $34.00 in a research report on Monday, July 29th. Imperial Capital reiterated an in-line rating and issued a $41.00 price objective (down from $43.00) on shares of American Airlines Group in a research report on Tuesday, April 30th. Morgan Stanley downgraded shares of American Airlines Group from an equal weight rating to an underweight rating and cut their price objective for the company from $40.00 to $26.00 in a research report on Monday, May 20th. Finally, Citigroup set a $54.00 price objective on shares of American Airlines Group and gave the company a buy rating in a research report on Friday, July 26th. Four equities research analysts have rated the stock with a sell rating, six have given a hold rating and eleven have given a buy rating to the company’s stock. The company presently has an average rating of Hold and a consensus target price of $41.19.

Shares of NASDAQ:AAL opened at $25.79 on Friday. The company has a market cap of $11.31 billion, a PE ratio of 5.67, a P/E/G ratio of 0.31 and a beta of 1.66. The company’s 50-day moving average price is $31.27 and its 200 day moving average price is $32.48. American Airlines Group has a fifty-two week low of $25.14 and a fifty-two week high of $43.89.

American Airlines Group (NASDAQ:AAL) last issued its quarterly earnings data on Thursday, July 25th. The airline reported $1.82 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate 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%. American Airlines Group’s quarterly revenue was up 2.7% compared to the same quarter last year. During the same period last year, the firm posted $1.63 EPS. As a group, sell-side analysts anticipate that American Airlines Group will post 4.91 EPS for the current fiscal year.

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

In other American Airlines Group news, Director Ray M. Robinson sold 6,930 shares of the business’s stock in a transaction dated Friday, August 2nd. The shares were sold at an average price of $29.11, for a total transaction of $201,732.30. Following the sale, the director now directly owns 29,754 shares in the company, valued at approximately $866,138.94. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO W Douglas Parker acquired 50,000 shares of the stock in a transaction dated Tuesday, June 4th. The stock was acquired at an average cost of $28.09 per share, for a total transaction of $1,404,500.00. Following the purchase, the chief executive officer now directly owns 2,201,636 shares in the company, valued at $61,843,955.24. The disclosure for this purchase can be found here. Insiders have acquired a total of 99,000 shares of company stock worth $2,787,070 over the last 90 days. 0.86% of the stock is owned by insiders.

Several institutional investors and hedge funds have recently made changes to their positions in the company. First Dallas Securities Inc. grew its stake in shares of American Airlines Group by 0.6% in the 1st quarter. First Dallas Securities Inc. now owns 63,330 shares of the airline’s stock worth $2,011,000 after purchasing an additional 367 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. increased its position in shares of American Airlines Group by 1.7% in the second quarter. Connor Clark & Lunn Investment Management Ltd. now owns 22,875 shares of the airline’s stock worth $746,000 after acquiring an additional 375 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank increased its position in shares of American Airlines Group by 1.4% in the first quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 28,804 shares of the airline’s stock worth $915,000 after acquiring an additional 405 shares in the last quarter. NJ State Employees Deferred Compensation Plan increased its position in shares of American Airlines Group by 5.8% in the second quarter. NJ State Employees Deferred Compensation Plan now owns 7,872 shares of the airline’s stock worth $257,000 after acquiring an additional 433 shares in the last quarter. Finally, Global Wealth Management Investment Advisory Inc. increased its position in shares of American Airlines Group by 69.4% in the first quarter. Global Wealth Management Investment Advisory Inc. now owns 1,067 shares of the airline’s stock worth $34,000 after acquiring an additional 437 shares in the last quarter. 78.83% of the stock is currently 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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