American Airlines stock: buy or sell

AAL stock price: $21.01 3.14% At close on Apr 21st, 2021

Updated on:
Apr 22nd, 2021

1

American Airlines stock brief

  • American Airlines closed on Wednesday at $21.01 (3.14%) prior to reporting financial results next July at 08:00
  • American Airlines made public its earnings report on Thursday
  • From the chart point view, price is drawing a scaled uptrend since October 2020 with higher tops and higher bottoms. This uptrend marked a 97.65% gain
  • American Airlines Group Inc., through its subsidiaries, operates as a network air carrier.

Should I buy American Airlines stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is $AAL stock a buy?

Currently, American Airlines stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean we expect a selloff for $AAL in coming sessions, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell American Airlines stock?

Do you know when is it time to sell American Airlines?. Trading strategies prevent us from making impetuous decisions based on our personal moods or the noise surrounding the market. We like very simple strategies to guide us on when is the best time to sell our shares. Be aware that these strategies are not intended for selling short $AAL stock

As a rule of thumb, you should never keep a trade that leads to greater losses than those expected at the time of the buy. When to sell your stock should always be ruled by the stop-loss (automatic or manual)

Is it time to sell American Airlines stock?

In the current situation of American Airlines there is not any eligible sell setup, so American Airlines stock holders with operations in profit can keep their positions

Price lost SMA50 level

Since American Airlines moved up above the 50-d SMA in November 2020 price gained 74.56%. But that uptrend may be over, or be showing signs of running out, since the price fell below that moving average threshold last Monday. For medium-term investors who have benefited from the stock while the price was over the average, this signal should be a heads up and a reason to sell the stock and take their returns

American Airlines ratings

In the last month, 4 ratings were published for American Airlines

American Airlines analysts' ratings - Last 30 days
Brokerage firmRating
Mar 30th, 2021
Jefferies Financial Group SellNeutral
Apr 6th, 2021
Morgan Stanley Sell
Apr 13th, 2021
Morgan Stanley Sell
Apr 15th, 2021
Barclays Neutral

American Airlines stock analysis

Since in October 2020, American Airlines has been printing an uptrend that so far marked an amazing 97.65%. The price line shows higher peaks and higher troughs, and along the way gave some buying opportunities for those who wanted to invest. Latest pullback was last February, when price bounced at $16.33. Currently, the price swings in a consolidation between its last top ($26.09) and its last bottom ($16.33)

SMAs overview

AAL stock SMAs chart

Supports and resistances

The current resistances are:

  • R1: $21.77 (3.62% above)
  • R2: $22.80 (8.52% above)
  • R3: $23.22 (10.52% above)
  • The current support levels are:

  • S1: $20.22 (-3.76% below)
  • S2: $18.63 (-11.33% below)
  • S3: $18.47 (-12.09% below)
  • Bollinger bands

    Since the price broke down the lower band on Tuesday, the price bounced off by 5.26%. The price is moving very close to the lower Bollinger band, poiting some level of oversold in recent sessions. This is not a buy point, as price can move in these levels for many days and weeks

    AAL stock Bollinger Bands chart

    Relative strength index

    The RSI dropped below the overbought level of 70 in mid-March after just crossing to the overbough zone for just one day (weak signal). The RSI reading on Wednesday was 39.48. American Airlines shares sank a 15.86% since that level was lost

    AAL stock RSI chart

    American Airlines stock price history

    American Airlines IPO was on Sep 27th, 2005 priced at $19.84 per share1. Since then, AAL stock has risen by 5.90%, with an average of 0.39% per year. An investment of $1,000USD at that time would have a value of $1,058.97 today.

    1: Adjusted price after possible price splits or reverse-splits

    AAL stock price history chart

    Price target for American Airlines stock

    How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price forecasts are issued every day by banks, financial institutions and independent analysts.

    The following table shows the price forecasts posted by analysts in the last month. If you are a small investor you should not invest based on these predictions.

    Averaging all price targets exposed below, the forecasted price for American Airlines stock is $20.75. That is a 1.24% than the current price ($21.01).

    American Airlines stock price predictions
    Brokerage firmPrice target
    Mar 30th, 2021
    Jefferies Financial Group $15.00$25.00
    Apr 6th, 2021
    Morgan Stanley $20.00
    Apr 13th, 2021
    Morgan Stanley $20.00
    Apr 15th, 2021
    Barclays $18.00

    Earnings and financials

    American Airlines ($AAL) hosted the financial event and posted the report on Thursday.

    Same quarter one year ago, reported EPS was $-2.65, so recently posted EPS is 100.00%. Looking at turnover, figures dropped a -64.39% compared to $113.1B same quarter last year.

    American Airlines ($AAL) is hosting the quarterly earnings call next July.

    American Airlines competitors

    American Airlines is classified inside the Capital Goods sector and the Airlines industry, where it has industry peers.

    The following are some of American Airlines main competitors:

    American Airlines competitors
    CompanyMarket capRatingBullish ratings1
    American Airlines ($AAL) $14.7B Neutral 0
    Southwest Airlines ($LUV) $35.8B Buy 7
    Delta Air Lines ($DAL) $30.5B Buy 4
    United Airlines ($UAL) $18.1B Buy 3
    Alaska Air (ALK) $8.9B Buy 3
    JetBlue Airways ($JBLU) $6.2B Buy 7
    Allegiant Travel (ALGT) $4.2B Buy 4
    Spirit Airlines ($SAVE) $3.6B Buy 5
    SkyWest (SKYW) $2.9B Neutral 0
    Hawaiian (HA) $1.4B Neutral 0

    1 In the last 30 days.

    American Airlines performance

    To better understand American Airlines performance you must compare its gains with other related stocks in same sector or industry.. For American Airlines, the benchmark is made against Southwest Airlines, Delta Air Lines, United Airlines, Alaska Air, JetBlue Airways, Allegiant Travel, Spirit Airlines, SkyWest and Hawaiian.

    AAL performance compared
    Company1m3m6m
    American Airlines ($AAL) -10.00% 31.40% 64.80%
    Southwest Airlines ($LUV) -1.10% 27.10% 49.60%
    Delta Air Lines ($DAL) -8.40% 9.20% 40.20%
    United Airlines ($UAL) -15.80% 11.70% 46.00%
    Alaska Air (ALK) -5.00% 21.70% 68.90%
    JetBlue Airways ($JBLU) -4.10% 27.00% 55.90%
    Allegiant Travel (ALGT) -2.30% 25.40% 77.70%
    Spirit Airlines ($SAVE) -11.50% 28.90% 111.40%
    SkyWest (SKYW) -5.30% 19.00% 62.10%
    Hawaiian (HA) -4.70% 19.00% 76.20%

    Important note:
    The opinions published in this article are personal and not recommendations for you to buy or sell shares. The author of this article does not have an understanding of the specific conditions of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are provided for educative motives only

    American Airlines summary

    Wednesday, April 21st, 2021
    Open$20.01
    Close$21.01
    Day range$19.64 - $21.03
    Previous close$20.37
    Session gain3.14%
    Average true range$1.02
    50d mov avg$21.82
    100d mov avg$18.96
    200d mov avg$15.70
    Earnings dateJuly 22nd, 2021

    Frequently asked questions

    What is American Airlines stock symbol?

    American Airlines Group Inc. is a public company trading in the US stock market with the AAL symbol

    Is American Airlines stock a buy or sell?

    American Airlines received 4 ratings in the last 30 days: 0 bullish, 2 bearish and 2 neutral.

    Will AAL go up?

    American Airlines had different price predictions published by market analysts in the last 30 days setting the target price to $20.75. That is a 1.24% than the last price ($21.01).