American Airlines Group Inc. [NASDAQ: AAL] stock went on an upward path that rose over 0.30% on Friday, amounting to a one-week price decrease of less than -3.17%. The company report on June 11, 2021 that American Airlines Invests in the Future of Urban Air Mobility.
As part of its ongoing commitment to environmental sustainability, American Airlines announced it will invest in Vertical Aerospace, a leading UK-headquartered engineering and aeronautical business developing electric vertical takeoff and landing (eVTOL) aircraft. With the investment, American is demonstrating its focus on emerging technologies to reduce carbon emissions and investing in innovative ways that could improve the customer journey.
As part of its investment in Vertical, American has agreed to pre-order, subject to certain future agreed upon milestones and other terms, up to 250 aircraft, representing a potential pre-order commitment of $1 billion, and an option to order an additional 100 aircraft. The airline also expects to make a $25 million investment in Vertical through a private investment in public equity (PIPE) transaction. Vertical is developing the VA-X4, a zero-carbon aircraft that can carry four passengers and a pilot, and fly at speeds up to 200 mph over a range of over 100 miles.
Over the last 12 months, AAL stock rose by 63.63%. The one-year American Airlines Group Inc. stock forecast points to a potential downside of -24.63. The average equity rating for AAL stock is currently 3.40, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $15.05 billion, with 641.38 million shares outstanding and 636.38 million shares in the current float. Compared to the average trading volume of 37.22M shares, AAL stock reached a trading volume of 24019180 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on 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 $18.88 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 3.40. 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.
MKM Partners have made an estimate for American Airlines Group Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on June 10, 2021. The new note on the price target was released on April 23, 2021, representing the official price target for American Airlines Group Inc. stock. Previously, the target price had yet another raise to $20, while Morgan Stanley analysts kept a Underweight rating on AAL stock. On March 30, 2021, analysts increased their price target for AAL shares from 15 to 25.
The Average True Range (ATR) for American Airlines Group Inc. is set at 0.82, with the Price to Sales ratio for AAL stock in the period of the last 12 months amounting to 1.17.
AAL Stock Performance Analysis:
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 -3.17. With this latest performance, AAL shares gained by 13.34% in over the last four-week period, additionally plugging by 37.12% over the last 6 months – not to mention a rise of 63.63% 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 50.93, with the RSI for the last a single of trading hit 46.64, and the three-weeks RSI is set at 52.55 for American Airlines Group Inc. [AAL]. The present Moving Average for the last 50 days of trading for this stock 22.74, while it was recorded at 23.86 for the last single week of trading, and 17.62 for the last 200 days.
Insight into American Airlines Group Inc. 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 0.90 and a Current Ratio set at 1.00.
AAL Stock EPS
With the latest financial reports released by the company, American Airlines Group Inc. posted -7.82/share EPS, while the average EPS was predicted by analysts to be reported at -7.7/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -1.60%. 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 Position Details
There are presently around $7,788 million, or 52.40% of AAL stock, in the hands of institutional investors. The top three institutional holders of AAL stocks are: VANGUARD GROUP INC with ownership of 65,972,326, which is approximately 13.357% of the company’s market cap and around 1.00% of the total institutional ownership; PRIMECAP MANAGEMENT CO/CA/, holding 44,141,626 shares of the stock with an approximate value of $1.04 billion in AAL stocks shares; and BLACKROCK INC., currently with $821.36 million in AAL stock with ownership of nearly 10.883% of the company’s market capitalization.
Positions in American Airlines Group Inc. stocks held by institutional investors increased at the end of April and at the time of the April reporting period, where 337 institutional holders increased their position in American Airlines Group Inc. [NASDAQ:AAL] by around 42,112,752 shares. Additionally, 232 investors decreased positions by around 39,994,067 shares, while 100 investors held positions by with 248,885,479 shares. The mentioned changes placed institutional holdings at 330,992,298 shares, according to the latest SEC report filing. AAL stock had 122 new institutional investments in for a total of 7,668,548 shares, while 89 institutional investors sold positions of 8,462,969 shares during the same period.