American Airlines Group (AAL) Stock Rating Lowered by Zacks Investment Research
Zacks Investment Research lowered shares of American Airlines Group (NASDAQ:AAL) from a buy rating to a hold rating in a research report sent to investors on Monday morning.
According to Zacks, “American Airlines 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. However, high costs have the potential to limit bottom-line growth going forward. Consolidated cost per available seat miles (excluding special items and fuel) is expected to increase 4% in the first quarter of 2018. Further, adding to its woes are its high debt levels. In fact, shares of the company have underperformed its industry in the last three months.”
Several other equities research analysts also recently weighed in on the stock. JPMorgan Chase & Co. raised shares of American Airlines Group from a neutral rating to an overweight rating and set a $65.00 price target for the company in a research report on Wednesday, November 1st. Stephens reissued a hold rating and set a $61.00 price target on shares of American Airlines Group in a research report on Friday, January 26th. BidaskClub raised shares of American Airlines Group from a hold rating to a buy rating in a research report on Wednesday, December 27th. Buckingham Research reaffirmed a buy rating on shares of American Airlines Group in a research report on Friday, October 27th. Finally, Bank of America raised shares of American Airlines Group from an underperform rating to a buy rating and set a $64.00 target price for the company in a research report on Tuesday, January 9th. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating, ten have assigned a buy rating and two have assigned a strong buy rating to the stock. American Airlines Group presently has a consensus rating of Buy and a consensus target price of $61.56.
American Airlines Group (NASDAQ:AAL) last announced its earnings results on Thursday, January 25th. The airline reported $0.95 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.92 by $0.03. American Airlines Group had a net margin of 4.55% and a return on equity of 63.78%. The business had revenue of $10.60 billion during the quarter, compared to the consensus estimate of $10.59 billion. During the same quarter last year, the firm earned $0.92 earnings per share. The business’s revenue for the quarter was up 8.3% on a year-over-year basis. equities research analysts expect that American Airlines Group will post 5.8 EPS for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Tuesday, February 20th. Stockholders of record on Tuesday, February 6th will be paid a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a dividend yield of 0.80%. The ex-dividend date of this dividend is Monday, February 5th. American Airlines Group’s dividend payout ratio is presently 10.23%.
In other news, Director Alberto Ibarguen sold 4,229 shares of American Airlines Group stock in a transaction on Friday, November 17th. The shares were sold at an average price of $47.60, for a total transaction of $201,300.40. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Richard C. Kraemer sold 3,000 shares of American Airlines Group stock in a transaction on Monday, January 29th. The shares were sold at an average price of $52.71, for a total transaction of $158,130.00. Following the transaction, the director now owns 53,229 shares in the company, valued at approximately $2,805,700.59. The disclosure for this sale can be found here. Insiders have sold a total of 306,645 shares of company stock worth $16,027,947 in the last quarter. Corporate insiders own 0.69% of the company’s stock.
Several institutional investors and hedge funds have recently added to or reduced their stakes in AAL. Virtu KCG Holdings LLC purchased a new position in shares of American Airlines Group during the 2nd quarter valued at $322,000. Macquarie Group Ltd. lifted its stake in shares of American Airlines Group by 38.1% during the 2nd quarter. Macquarie Group Ltd. now owns 205,156 shares of the airline’s stock valued at $10,323,000 after buying an additional 56,594 shares in the last quarter. Janus Henderson Group PLC lifted its stake in shares of American Airlines Group by 145.6% during the 2nd quarter. Janus Henderson Group PLC now owns 45,427 shares of the airline’s stock valued at $2,286,000 after buying an additional 26,929 shares in the last quarter. Koch Industries Inc. purchased a new position in shares of American Airlines Group during the 2nd quarter valued at $265,000. Finally, WINTON GROUP Ltd lifted its stake in shares of American Airlines Group by 93.4% during the 2nd quarter. WINTON GROUP Ltd now owns 13,721 shares of the airline’s stock valued at $690,000 after buying an additional 6,628 shares in the last quarter. Institutional investors own 80.93% of the company’s stock.
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About American Airlines Group
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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