American Airlines Group Inc. [NASDAQ: AAL] closed the trading session at $25.17 on 03/15/21. The day’s price range saw the stock hit a low of $24.21, while the highest price level was $25.94. The company report on March 11, 2021 that American Airlines Announces Upsize of AAdvantage Financing to $10.0 Billion and Pricing of Senior Secured Notes.
American Airlines Group Inc. (NASDAQ: AAL) announced the upsize and pricing of the previously announced private offering by the Company’s subsidiary, American Airlines, Inc. (“American”), and AAdvantage Loyalty IP Ltd., a newly formed Cayman Islands exempted company incorporated with limited liability and an indirect wholly owned subsidiary of the Company and American. An aggregate of $3.5 billion in principal amount of 5.50% senior secured notes due 2026 and an aggregate of $3.0 billion in principal amount of 5.75% senior secured notes due 2029 (collectively, the “Notes”) are expected to be issued on March 24, 2021, subject to customary closing conditions. The Notes will be issued at a price to investors of 100% of their principal amount. Concurrent with the issuance of the Notes, American and AAdvantage Loyalty IP Ltd. expect to enter into a credit agreement providing for a $3.5 billion term loan facility (the “New AAdvantage Term Loan Facility”), also subject to customary closing conditions. In total, the Notes and New AAdvantage Term Loan Facility will provide gross proceeds of $10.0 billion, an increase of $2.5 billion from the anticipated original $7.5 billion transaction size, at a blended average annual coupon rate of 5.575%.
AAdvantage Loyalty IP Ltd. intends to lend the net proceeds from the offering of the Notes and the New AAdvantage Term Loan Facility to American, after depositing a portion of the proceeds in certain reserve accounts. American intends to use the proceeds from this intercompany loan from AAdvantage Loyalty IP Ltd. to repay all amounts outstanding under the term loan facility with the U.S. Department of the Treasury that is currently secured by collateral that will secure, in part, the Notes and the New AAdvantage Term Loan Facility, and to use the remainder for general corporate purposes, which may include the repayment of other indebtedness.
The stocks have a year to date performance of 59.61 percent and weekly performance of 17.23 percent. The stock has been moved at 94.36 percent over the last six months. The stock has performed 48.15 percent around the most recent 30 days and changed 39.91 percent over the most recent 3-months.
If compared to the average trading volume of 59.66M shares, AAL reached to a volume of 93429032 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to 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 $14.19 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 3.50. 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.
Deutsche Bank have made an estimate for American Airlines Group Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on February 22, 2021. The new note on the price target was released on February 01, 2021, representing the official price target for American Airlines Group Inc. stock. On December 11, 2020, analysts increased their price target for AAL shares from 18 to 20.
The Average True Range (ATR) for American Airlines Group Inc. is set at 1.28, with the Price to Sales ratio for AAL stock in the period of the last 12 months amounting to 0.88.
AAL stock trade performance evaluation
American Airlines Group Inc. [AAL] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 17.23. With this latest performance, AAL shares gained by 48.15% in over the last four-week period, additionally plugging by 94.36% over the last 6 months – not to mention a rise of 75.89% 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 77.22, with the RSI for the last a single of trading hit 81.60, and the three-weeks RSI is set at 73.97 for American Airlines Group Inc. [AAL]. The present Moving Average for the last 50 days of trading for this stock 18.17, while it was recorded at 22.81 for the last single week of trading, and 14.63 for the last 200 days.
American Airlines Group Inc. [AAL]: An insightful look at the core 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 -65.68 and a Gross Margin at -42.21. American Airlines Group Inc.’s Net Margin is presently recorded at -51.25.
Return on Total Capital for AAL is now -33.75, given the latest momentum, and Return on Invested Capital for the company is -30.40. Additionally, AAL Total Debt to Total Capital is recorded at 120.11, with Total Debt to Total Assets ending up at 66.15.
Reflecting on the efficiency of the workforce at the company, American Airlines Group Inc. [AAL] managed to generate an average of -$86,514 per employee. Receivables Turnover for the company is 11.21 with a Total Asset Turnover recorded at a value of 0.28.American Airlines Group Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.60 and a Current Ratio set at 0.70.
Earnings per share (EPS) analysis for American Airlines Group Inc. [AAL] stock
With the latest financial reports released by the company, American Airlines Group Inc. posted -2.65/share EPS, while the average EPS was predicted by analysts to be reported at -2.33/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -13.70%. 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.
American Airlines Group Inc. [AAL]: Insider Ownership positions
There are presently around $7,620 million, or 51.60% of AAL stock, in the hands of institutional investors. The top three institutional holders of AAL stocks are: VANGUARD GROUP INC with ownership of 58,198,918, which is approximately 9.98% of the company’s market cap and around 1.00% of the total institutional ownership; PRIMECAP MANAGEMENT CO/CA/, holding 47,666,106 shares of the stock with an approximate value of $1.2 billion in AAL stocks shares; and BLACKROCK INC., currently with $792.37 million in AAL stock with ownership of nearly 8.33% of the company’s market capitalization.
Positions in American Airlines Group Inc. stocks held by institutional investors increased at the end of January and at the time of the January reporting period, where 327 institutional holders increased their position in American Airlines Group Inc. [NASDAQ:AAL] by around 71,917,789 shares. Additionally, 181 investors decreased positions by around 16,512,227 shares, while 106 investors held positions by with 237,633,402 shares. The mentioned changes placed institutional holdings at 326,063,418 shares, according to the latest SEC report filing. AAL stock had 130 new institutional investments in for a total of 14,016,057 shares, while 64 institutional investors sold positions of 3,033,932 shares during the same period.