why American Airlines Group Inc. [AAL] is a Good Choice for Investors After New Price Target of $11.56

American Airlines Group Inc. [NASDAQ: AAL] slipped around -0.54 points on Monday, while shares priced at $13.05 at the close of the session, down -3.97%. The company report on August 13, 2020 that Neste to supply sustainable aviation fuel to three major U.S. airlines.

With Neste’s sustainable aviation fuel, Alaska Airlines, American Airlines and JetBlue Airways are creating a more sustainable future for the aviation industry.

Neste, the world’s largest producer of renewable diesel and sustainable aviation fuel (SAF) made from waste and residue raw materials, is supplying Alaska Airlines, American Airlines and JetBlue Airways with sustainable aviation fuel for flights from San Francisco International Airport (SFO). The low-carbon and high-quality fuel will contribute to each airline’s efforts to reach their climate goals.

American Airlines Group Inc. stock is now -54.50% down from its year-to-date (YTD) trading value. AAL Stock saw the intraday high of $13.74 and lowest of $13.05 per share. The company’s 52-week high price is 31.67, which means current price is +58.18% above from all time high which was touched on 02/12/20.

Compared to the average trading volume of 96.09M shares, AAL reached a trading volume of 45498445 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about American Airlines Group Inc. [AAL]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for AAL shares is $11.56 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on AAL stock is a recommendation set at 3.30. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Raymond James have made an estimate for American Airlines Group Inc. shares, keeping their opinion on the stock as Mkt Perform, with their previous recommendation back on July 27, 2020. While these analysts kept the previous recommendation, Cowen raised their target price from $15 to $20. The new note on the price target was released on June 17, 2020, representing the official price target for American Airlines Group Inc. stock. Previously, the target price had yet another raise to $27, while Seaport Global Securities analysts kept a Buy rating on AAL stock.

The Average True Range (ATR) for American Airlines Group Inc. is set at 0.80, with the Price to Sales ratio for AAL stock in the period of the last 12 months amounting to 0.19.

How has AAL stock performed recently?

American Airlines Group Inc. [AAL] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -2.90. With this latest performance, AAL shares gained by 17.36% in over the last four-week period, additionally sinking by -26.89% over the last 6 months – not to mention a drop of -50.40% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for AAL stock in for the last two-week period is set at 52.44, with the RSI for the last a single of trading hit 52.03, and the three-weeks RSI is set at 51.65 for American Airlines Group Inc. [AAL]. The present Moving Average for the last 50 days of trading for this stock 12.51, while it was recorded at 13.17 for the last single week of trading, and 18.07 for the last 200 days.

American Airlines Group Inc. [AAL]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and American Airlines Group Inc. [AAL] shares currently have an operating margin of +8.10 and a Gross Margin at +24.96. American Airlines Group Inc.’s Net Margin is presently recorded at +3.68.

Return on Total Capital for AAL is now 11.03, given the latest momentum, and Return on Invested Capital for the company is 5.85. Additionally, AAL Total Debt to Total Capital is recorded at 100.35, with Total Debt to Total Assets ending up at 55.74.

Reflecting on the efficiency of the workforce at the company, American Airlines Group Inc. [AAL] managed to generate an average of $12,610 per employee. Receivables Turnover for the company is 26.49 with a Total Asset Turnover recorded at a value of 0.76.American Airlines Group Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.70 and a Current Ratio set at 0.80.

Earnings analysis for American Airlines Group Inc. [AAL]

With the latest financial reports released by the company, American Airlines Group Inc. posted 1.42/share EPS, while the average EPS was predicted by analysts to be reported at 1.39/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 2.20%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for AAL.

Insider trade positions for American Airlines Group Inc. [AAL]

There are presently around $3,741 million, or 57.00% of AAL stock, in the hands of institutional investors. The top three institutional holders of AAL stocks are: VANGUARD GROUP INC with ownership of 53,257,207, which is approximately 22.361% of the company’s market cap and around 1.10% of the total institutional ownership; PRIMECAP MANAGEMENT CO/CA/, holding 51,872,366 shares of the stock with an approximate value of $676.93 million in AAL stocks shares; and BLACKROCK INC., currently with $330.76 million in AAL stock with ownership of nearly 11.045% of the company’s market capitalization.

Positions in American Airlines Group Inc. stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 297 institutional holders increased their position in American Airlines Group Inc. [NASDAQ:AAL] by around 71,273,661 shares. Additionally, 273 investors decreased positions by around 82,460,935 shares, while 76 investors held positions by with 132,946,972 shares. The mentioned changes placed institutional holdings at 286,681,568 shares, according to the latest SEC report filing. AAL stock had 110 new institutional investments in for a total of 21,408,164 shares, while 126 institutional investors sold positions of 52,890,226 shares during the same period.

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