Now Is A Suitable Moment For A Long-Term Purchase Of American Airlines Group Inc. (NASDAQ: AAL)


The Vanguard Group, Inc. recently announced the acquisition of new stake in American Airlines Group Inc. (NASDAQ:AAL). The institutional investor has increased its shareholding in the Industrials company by 22.60% to 51.63 million shares with purchase of 9.52 million shares. This fresh investment now brings its stake to 10.15% valued currently at $574.16 million. In addition, BlackRock Fund Advisors raised its holdings by 3.28 million to 21.37 million shares. And SSgA Funds Management, Inc. has lifted its position by 0.56% or 73061.0 shares – to 13.02 million shares.

With over 54.18 million American Airlines Group Inc. (AAL) shares trading Friday and a closing price of $13.59 on the day, the dollar volume was approximately $736.32 million. The shares have shown a positive weekly performance of 11.76% and its price on 08/28/20 gained nearly 2.33%. Currently, there are 508.11M common shares owned by the public and among those 502.33M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 20 analysts who have offered their price forecasts for AAL have a consensus price objective of $11.56. The analysts have set the share’s price value over the next 12 months at a high of $27.00 and a low of $1.00 should the stock experience a downside. Incidentally, analysts’ outlook for the American Airlines Group Inc. stock is 3.30 for the next 12 months. The average price target is -17.56% below its last price level and a downside to the estimated low will see the stock lose -1259.0% over that period. But an upside of 49.67% will see the stock hit the forecast high price target while mean target price for the stock is $10.50.

Insiders at the company have transacted a total of 38 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 19 of these insider trades were purchases, accounting for 1,106,639 shares. Insider sales of the common stock occurred on 19 occasions, with total insider shares sold totaling 173,810 shares.

The top 3 mutual fund holders in American Airlines Group Inc. are Vanguard PRIMECAP Fund, Vanguard Total Stock Market Index, and Vanguard Mid Cap Index Fund. Vanguard PRIMECAP Fund owns 25.1 million shares of the company’s stock, all valued at over $279.16 million. The company sold -4.89 million shares recently to bring their total holdings to about 4.94% of the shares outstanding. Vanguard Total Stock Market Index sold 5407.0 shares to see its total holdings shrink to 14.19 million shares valued at over $157.83 million and representing 2.79% of the shares outstanding. Vanguard Mid Cap Index Fund sold 69139.0 shares to bring its total holdings to over 12.21 million shares at a value of $135.83 million. Vanguard Mid Cap Index Fund now owns shares totaling to 2.40% of the shares outstanding.

Shares of American Airlines Group Inc. (NASDAQ: AAL) opened at $13.59, up $0.31 from a prior closing price of $13.28. However, the script later closed the day at $13.59, up 2.33%. The company’s stock has a 5-day price change of 11.76% and 22.32% over the past three months. AAL shares are trading -52.62% year to date (YTD), with the 12-month market performance down to -48.37% lower. It has a 12-month low price of $8.25 and touched a high of $31.67 over the same period. Currently, 54.18 million shares have been traded, compared to an average intraday trading volume of 96.34 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 6.42%, 7.66%, and -25.45% respectively.

Institutional ownership of American Airlines Group Inc. (NASDAQ: AAL) shares accounts for 57.00% of the company’s 508.11M shares outstanding. Mutual fund holders own 25.20%, while other institutional holders and individual stakeholders account for 31.40% and 1.65% respectively.

It has a market capitalization of $6.75B and a beta (3y monthly) value of 1.76. The earnings-per-share (ttm) stands at -$8.17. Price movements for the stock have been influenced by the stock’s volatility, which stands at 6.98% over the week and 6.38% over the month.

Analysts forecast that American Airlines Group Inc. (AAL) will achieve an EPS of -$5.85 for the current quarter, -$3.38 for the next quarter and -$2.74 for 2021. The lowest estimate earnings-per-share for the quarter is -$7.09 while analysts give the company a high EPS estimate of -$4.73. Comparatively, EPS for the current quarter was $1.42 a year ago. Earnings per share for the fiscal year are expected to increase by 25.20%, and 85.70% over the next financial year.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 20 brokerage firm advisors rate American Airlines Group Inc. (AAL) as a “Hold” at a consensus score of 3.30. Specifically, 3 Wall Street analysts polled rate the stock as a buy, while 8 of the 20 advise that investors “hold,” and 7 rated it as a “Sell.”

Looking at the support for the AAL, a number of firms have released research notes about the stock. Raymond James stated their Mkt Perform rating for the stock in a research note on July 27, 2020, with the firm’s price target at. Cowen coverage for the American Airlines Group Inc. (AAL) stock in a research note released on June 17, 2020 offered a Outperform rating with a price target of $20. Seaport Global Securities was of a view on June 17, 2020 that the stock is Buy, while Raymond James gave the stock Underperform rating on June 05, 2020, issuing a price target of. Barclays on their part issued Underweight rating on May 04, 2020.


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