American Airlines Group (AAL) Raised to “Buy” at Zacks Investment Research

American Airlines Group (NASDAQ:AAL) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Tuesday. The firm currently has a $56.00 price target on the airline’s stock. Zacks Investment Research‘s price objective points to a potential upside of 9.65% from the stock’s previous close.

According to Zacks, “Shares of American Airlines have outperformed its industry in the last three months. The company reported better-than-expected earnings per share and revenues in the fourth quarter of 2017. Additionally, both metrics improved on a year-over-year basis. Strong demand for air travel coupled with improving yields also aided results. The company's performance with respect to unit revenues was also encouraging in the quarter. Efforts to modernize its fleet too raise optimism in the stock. The company efforts to reward shareholders through dividends and share buybacks are also impressive. During 2017, the company returned $1.7 billion to shareholders through dividends and buybacks. However, high costs and debt levels are a cause for worry. “

Several other brokerages also recently weighed in on AAL. Buckingham Research restated a “buy” rating and set a $71.00 price objective (up from $66.00) on shares of American Airlines Group in a research report on Thursday, January 11th. Citigroup upped their price objective on American Airlines Group to $65.00 and gave the stock a “buy” rating in a research report on Thursday, January 11th. Imperial Capital restated an “in-line” rating and set a $53.00 price objective (up from $47.00) on shares of American Airlines Group in a research report on Thursday, January 11th. Morgan Stanley upped their price objective on American Airlines Group from $58.00 to $60.00 and gave the stock an “equal weight” rating in a research report on Friday, January 26th. Finally, Stephens restated a “hold” rating and set a $61.00 price objective on shares of American Airlines Group in a research report on Friday, January 26th. One research analyst has rated the stock with a sell rating, five have issued a hold rating, eleven have assigned a buy rating and two have issued a strong buy rating to the stock. The company presently has an average rating of “Buy” and a consensus target price of $61.38.

Shares of American Airlines Group (NASDAQ AAL) opened at $51.07 on Tuesday. The company has a current ratio of 0.61, a quick ratio of 0.52 and a debt-to-equity ratio of 5.73. American Airlines Group has a 1 year low of $39.21 and a 1 year high of $59.08. The firm has a market capitalization of $24,341.25, a price-to-earnings ratio of 10.38, a P/E/G ratio of 1.10 and a beta of 0.96.

American Airlines Group (NASDAQ:AAL) last announced its quarterly earnings data on Thursday, January 25th. The airline reported $0.95 earnings per share for the quarter, topping the consensus estimate of $0.92 by $0.03. American Airlines Group had a return on equity of 63.78% and a net margin of 4.55%. The business had revenue of $10.60 billion during the quarter, compared to the consensus estimate of $10.59 billion. During the same period in the prior year, the company earned $0.92 EPS. American Airlines Group’s revenue for the quarter was up 8.3% on a year-over-year basis. analysts predict that American Airlines Group will post 5.8 earnings per share for the current year.

In other American Airlines Group news, Director Alberto Ibarguen sold 4,229 shares of the stock in a transaction dated Friday, November 17th. The stock was sold at an average price of $47.60, for a total value of $201,300.40. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, VP Derek J. Kerr sold 39,662 shares of the stock in a transaction dated Monday, January 29th. The shares were sold at an average price of $52.77, for a total value of $2,092,963.74. Following the completion of the transaction, the vice president now owns 429,046 shares of the company’s stock, valued at $22,640,757.42. The disclosure for this sale can be found here. Insiders sold 306,645 shares of company stock valued at $16,027,947 over the last quarter. Corporate insiders own 0.64% of the company’s stock.

Several hedge funds have recently modified their holdings of AAL. WFG Advisors LP increased its stake in shares of American Airlines Group by 28.1% in the second quarter. WFG Advisors LP now owns 2,367 shares of the airline’s stock valued at $119,000 after buying an additional 519 shares during the period. Exane Derivatives increased its stake in shares of American Airlines Group by 416.3% in the third quarter. Exane Derivatives now owns 2,592 shares of the airline’s stock valued at $123,000 after buying an additional 2,090 shares during the period. Johnson Financial Group Inc. acquired a new stake in shares of American Airlines Group in the fourth quarter valued at about $127,000. Blue Granite Capital LLC acquired a new stake in shares of American Airlines Group in the third quarter valued at about $131,000. Finally, NuWave Investment Management LLC acquired a new stake in shares of American Airlines Group in the fourth quarter valued at about $145,000. 80.93% of the stock is owned by institutional investors.

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American Airlines Group Company Profile

American Airlines Group Inc is a holding company. The Company’s primary business activity is the operation of a network air carrier, providing scheduled air transportation for passengers and cargo. The Company operates through American segment, which provides air transportation for passengers and cargo.

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