American Airlines Group (NASDAQ:AAL) Shares Gap Up – Should You Buy?

American Airlines Group Inc. (NASDAQ:AAL) gapped up prior to trading on Tuesday . The stock had previously closed at $11.87, but opened at $12.12. American Airlines Group shares last traded at $12.28, with a volume of 8,202,545 shares changing hands.

Analysts Set New Price Targets

AAL has been the subject of several research analyst reports. TD Cowen raised their price target on American Airlines Group from $7.00 to $9.00 and gave the stock a “hold” rating in a research report on Thursday, October 3rd. BNP Paribas raised American Airlines Group to a “hold” rating in a research report on Thursday, September 19th. JPMorgan Chase & Co. reduced their price target on shares of American Airlines Group from $21.00 to $15.00 in a research report on Friday, July 26th. Susquehanna lifted their price objective on shares of American Airlines Group from $11.00 to $12.00 and gave the company a “neutral” rating in a report on Wednesday, October 9th. Finally, Barclays reduced their target price on shares of American Airlines Group from $14.00 to $10.00 and set an “underweight” rating on the stock in a report on Wednesday, July 10th. Two equities research analysts have rated the stock with a sell rating, eight have issued a hold rating and six have issued a buy rating to the stock. According to data from MarketBeat, American Airlines Group has a consensus rating of “Hold” and a consensus price target of $13.09.

American Airlines Group Price Performance

The company’s 50 day simple moving average is $10.72 and its 200 day simple moving average is $11.84. The company has a market capitalization of $7.93 billion, a PE ratio of 19.78, a price-to-earnings-growth ratio of 0.26 and a beta of 1.43.

American Airlines Group (NASDAQ:AAL) last posted its earnings results on Thursday, July 25th. The airline reported $1.09 EPS for the quarter, beating analysts’ consensus estimates of $1.04 by $0.05. American Airlines Group had a negative net margin of 0.23% and a negative return on equity of 19.49%. The firm had revenue of $14.33 billion for the quarter, compared to the consensus estimate of $14.38 billion. During the same period last year, the firm posted $1.92 EPS. The company’s revenue was up 2.0% on a year-over-year basis. On average, equities analysts forecast that American Airlines Group Inc. will post 1.22 EPS for the current year.

Institutional Investors Weigh In On American Airlines Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Beaird Harris Wealth Management LLC boosted its stake in shares of American Airlines Group by 51.3% during the first quarter. Beaird Harris Wealth Management LLC now owns 2,345 shares of the airline’s stock worth $36,000 after buying an additional 795 shares during the period. GoalVest Advisory LLC purchased a new position in shares of American Airlines Group in the 1st quarter valued at approximately $38,000. Quarry LP purchased a new position in shares of American Airlines Group in the 4th quarter valued at approximately $34,000. UMB Bank n.a. increased its holdings in shares of American Airlines Group by 404.3% in the second quarter. UMB Bank n.a. now owns 2,824 shares of the airline’s stock valued at $32,000 after purchasing an additional 2,264 shares during the period. Finally, Sentry Investment Management LLC purchased a new stake in shares of American Airlines Group during the second quarter worth approximately $36,000. Hedge funds and other institutional investors own 52.44% of the company’s stock.

About American Airlines Group

American Airlines Group Inc, through its subsidiaries, operates as a network air carrier. The company provides scheduled air transportation services for passengers and cargo through its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, DC, as well as through partner gateways in London, Doha, Madrid, Seattle/Tacoma, Sydney, and Tokyo.