Don’t Get Into American Airlines Group Inc. (AAL) Shares For The Wrong Reasons

The stock is lingering around the initial support level of $26.91. After this, the following support is at the zone of $26.53. Up until the time the AAL stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 37.91 on the daily chart, and this may be a cause for comfort. In case the price goes below $26.53 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $27.72 level may cause a pull-back move approaching $28.15 mark.

American Airlines Group Inc. (AAL) is most likely going to rise 34.96 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $55-month high price target. This represents a whopping 101.54 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $36.5, which means a return possibility of 33.75 percent in comparison with the closing price of the stock of $27.29 on December 03. The lowest price set for the stock is $27 — just above -1.06 percent from AAL share price now.

Let’s take a glimpse at some insider activity at American Airlines Group Inc. (NASDAQ:AAL) and observe the pattern. The earliest insider trade happened on 10/28/2019. ALBAUGH JAMES F gathered a total of 10 thousand shares of the firm at average share price of $31.41. The total amount for the purchase was set at $314.1 thousand. On completing this exchange, the Director account balance was 36.09 thousand shares. The stock lost -10.6 percent from that insider purchase. On 08/29/2019, Isom Robert D Jr, President, did a purchase of 2.5 thousand shares at a price of $26.34 per share. This increased 65.85 thousand shares to the insider’s fortune and the stock experienced a 6.61 percent rally in price since the news became public. This exchange saw 771.27 thousand shares get into the President account. On 08/05/2019, Director EMBLER MICHAEL J recorded a purchase transaction valued at $112.72 thousand. The purchase at $28.18 a share has added 4 thousand shares into the insider’s portfolio position. Meanwhile, shares price witnessed -0.35 percent decrease since the transaction reporting date. The company insider is left with 30.97 thousand shares remaining in the account. ROBINSON RAY M, who works as Director at the company, performed a sale of 6.93 thousand shares in a transaction worth $201.73 thousand. The disposal recorded on 08/02/2019 was priced at $29.11 per share. The stock price plunged -3.54 percent since the transaction. ROBINSON RAY M currently holds a stake of 29.75 thousand in AAL stock which is worth $811.99 thousand after the insider selling.

On December 03, 2019, American Airlines Group Inc. (NASDAQ:AAL) shares lost -2.81% or -0.79 points to close at $27.29 with a heavy trading volume of 7.737 million shares. It opened the trading session at $27.73, the shares rose to $27.77 and dropped to $26.96, the range by which the price of stock traded the whole day. The company now has a market cap of $12 billion and currently has 441.26 million outstanding shares. American Airlines Group Inc. (AAL) stock has plunged -10.7 percent of market value in 21 trading days.

Stock analysts at UBS, assumed coverage of shares of American Airlines Group Inc. (NASDAQ:AAL) with Sell recommendation, according to their opinion released on November 13.

AAL stock’s trailing 3-year beta is 1.62, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $3.54 share in the trailing 52 weeks. The stock’s value fallen -15.01 percent year to date (YTD) compared to a decline of -32.05 percent in 52 week’s period. The firm’s shares are still trading -32.75 percent below its 1-year high of $40.58 and 12.63 percent up from 52-week low of $24.23. The average consensus ranking on the company is 2.5, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

American Airlines Group Inc. (AAL) shares are trading at a P/E ratio of 7.7 times earnings posted in the trailing 12 months. The industry AAL deals with has an average P/E of 10.7. Its P/B ratio is standing at 74.7X compared to the 2.2 industry average. It is additionally sporting a 0.3 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.7. American Airlines Group Inc. has a 61.1% gross profit margin, with its operating margin around 6.4%. Alongside this, the company’s net profit margin currently stands at 3.5%.

Past records have indicated that shares in American Airlines Group Inc. declined on 13 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of AAL’s Q4 earnings on January 24. Analysts are predicting revenue to climb 3.8 percent to $11.4B in the financial fourth quarter, while EPS will soar by about 21.15 percent to $1.26 per share. In the last quarter, it earnings of $0.52 per share came worse than the $1.78833, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $11.91B, missing the $11.93B analysts had expected. Earnings are seen to rise by -29.2 percent this year, 7.54 percent in the coming year and the trend continues by 9.61 percent every year in the next 5 years.