Take off with American Airlines Group Inc. (AAL): Get ready for trading

American Airlines Group Inc. (NASDAQ: AAL) stock jumped 3.15% on Wednesday to $14.42 against a previous-day closing price of $13.98. With 23.63 million shares changed hands, the volume of the stock remained lighter than its average volume of 32.12 million shares. During the session, the Airlines company that operates in wider Industrials sector, reached to the highest price of $14.43 whereas the lowest price it dropped to was $13.89. The 52-week range on AAL shows that it touched its highest point at $21.42 and its lowest point at $11.65 during that stretch. It currently has a 1-year price target of $16.32. Beta for the stock currently stands at 1.48.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of AAL was up-trending over the past week, with a rise of 2.34%, but this was up by 0.91% over a month. The stock lost -25.94% in the past year, while it has lost -19.71% so far this year. A look at the trailing 12-month EPS for AAL yields -2.52 with Next year EPS estimates of 1.50. For the next quarter, that number is 0.57. This implies an EPS growth rate of 83.10% for this year and 725.00% for next year. EPS is expected to grow by 16.09% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -21.70%.

Float and Shares Shorts:

At present, 650.59 million AAL shares are outstanding with a float of 642.18 million shares on hand for trading. On Oct 13, 2022, short shares totaled 86.29 million, which was 13.28% higher than short shares on Sep 14, 2022. In addition to Mr. Robert D. Isom Jr. as the firm’s CEO & Director, Mr. Derek J. Kerr serves as its CFO, Vice Chair & Pres of American Eagle.

Institutional Ownership:

Through their ownership of 54.91% of AAL’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 30.72% of AAL, in contrast to 24.69% held by mutual funds. Shares owned by individuals account for 1.61%. As the largest shareholder in AAL with 10.76% of the stake, The Vanguard Group, Inc. holds 69,956,412 shares worth 69,956,412. A second-largest stockholder of AAL, PRIMECAP Management Co., holds 38,955,176 shares, controlling over 5.99% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in AAL, holding 29,802,992 shares or 4.59% stake. With a 3.05% stake in AAL, the Vanguard PRIMECAP Fund is the largest stakeholder. A total of 19,835,313 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 3.00% of AAL stock, is the second-largest Mutual Fund holder. It holds 19,520,943 shares valued at 276.81 million. US Global Jets ETF holds 2.48% of the stake in AAL, owning 16,133,578 shares worth 228.77 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AAL since 21 analysts follow the stock currently. There are 1 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 15 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With AAL analysts setting a high price target of $26.00 and a low target of $7.00, the average target price over the next 12 months is $16.30. Based on these targets, AAL could surge 80.31% to reach the target high and fall by -51.46% to reach the target low. Reaching the average price target will result in a growth of 13.04% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. AAL will report FY 2022 earnings on 01/19/2023. Analysts have provided yearly estimates in a range of -$0.03 being high and -$1.40 being low. For AAL, this leads to a yearly average estimate of -$0.24. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. American Airlines Group Inc. surprised analysts by $0.13 when it reported $0.69 EPS against a consensus estimate of $0.56. The surprise factor in the prior quarter was -$0.01. Based on analyst estimates, the high estimate for the next quarter is $0.66 and the low estimate is $0.14. The average estimate for the next quarter is thus $0.54.

Dividends & Yield:

In terms of dividends, AAL has a dividend of $0.36 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and AAL currently yields $0.40. In the past year, AAL’s dividend yield has been $0.40, but when looking at the stock over the past five years, its yield has been $1.32. Accordingly, AAL has a current buyback yield of $0.20. This was $0.20 for the TTM, and it was $11.93 for the past five years.

Summary of Insider Activity:

Insiders traded AAL stock several times over the past three months with 1 Buys and 3 Sells. In these transactions, 8,548 shares were bought while 8,327 shares were sold. The number of buy transactions has increased to 25 while that of sell transactions has risen to 18 over the past year. The total number of shares bought during that period was 1,208,393 while 253,553 shares were sold.

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