AAL stock: buy or sell?
August 19th, 2019
Should I buy AAL stock?Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. That's why is so important to define your own trading strategy that fits your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.
None of our preferred buy setups matches with American Airlines stock situation right now, therefore this is not a suitable entry point.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is American Airlines stock a buy?
Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness.At Stocks2.com, we collected 15 ratings published for AAL stock in the last month. The general sentiment of these ratings is bullish for AAL stock, with 9 positive ratings.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-7-8||Credit Suisse Group||Neutral||Underperform|
|2019-5-20||Morgan Stanley||Equal Weight||Underweight|
|2019-4-4||Bank of America||Buy||Buy|
AAL stock analysis
Shares of American Airlines grew a good 1.20% and closed at $26.10.
American Airlines shares grew 1.20% to $26.10 today. AAL marked a lower low and a lower high in the short term, defining a downward trend. Climbing above $29.39 would break this short term down trend and open possibilities for reversing this situation.
After sliding a chilling -11.59% in a week last week, American Airlines closed this week at $26.10 and grew a tiny 1.20%.
AAL stock price history
AAL stock went public on September 27th, 2005 with a price of $19.981. Since then, AAL stock grew a 30.60%, with a yearly average of 2.40%. If you had invested right after AAL's IPO a $1,000 in AAL stock in 2005, it would worth $306.00 today.
1: Adjusted price after possible price splits or reverse-splits.
AAL stock historical price chart
AAL stock reached 52-week highs on September at $43.37, and all-time highs 2006-11-24 with a price of 60.06.
AAL stock price target is $42.50Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. You should not follow the analysts' AAL stock price predictions in the hope that they will be met as they may be wrong and not met. For the last month we found 11 price predictions for AAL stock:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-7-11||Buckingham Research||Lowers Target||$45.00||$43.00||-4.4%|
|2019-4-4||Bank of America||Reiterates||$42.00||$39.00||-7.1%|
|2019-1-9||Imperial Capital||Lowers Target||$55.00||$45.00||-18.2%|
Financials and fundamental analysis
Earnings date and Earnings per ShareSince April, when American Airlines posted its last earnings report, it plummed a hair-raising -22.67%. As soon as we get its actual EPS from the earnings report, we will extend this report.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 2018, American Airlines annual revenues raised a fine 4.51% to $44,530.00 million dollars from $42,610.00 marked in 2017. Instead, its income margin (compared to sales) stayed stable to 3.72%, that is $1,658.00 million. American Airlines fiscal year ends in December, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, American Airlines TTM sales up to March 2019 were $44,713.00 and earnings $1,656.00 M USD. If we compare this TTM figures with the last reported annuality, we can review American Airlines business evolution since December 2018: Annual turnover up to March, compared to lastest yearly report, stayed stable a neutral 0.41%. Regarding profit margin, American Airlines remained steady -0.02% to 3.72%
|2013||$26,740 M||-||$-1,830.00 M-6.8%||-|
|2014||$42,650 M||59.50%||$2,882 M6.8%||-257.49%|
|2015||$40,990 M||-3.89%||$7,610 M18.6%||164.05%|
|2016||$40,180 M||-1.98%||$2,676 M6.7%||-64.84%|
|2017||$42,610 M||6.05%||$1,285 M3.0%||-51.98%|
|2018||$44,530 M||4.51%||$1,658 M3.7%||29.03%|
|TTM||$44,713 M||0.41%||$1,656 M3.7%||-0.12%|
Quarterly financial resultsAmerican Airlines reported $10,584.00 M in sales for 2019-Q1, a -3.14% decline compared to previous quarter. Reported quarter earnings marked $185.00 M with a profit margin of 1.75%. Profit margin decreased a -3.41% compared to previous quarter when profit margin was 5.16%. When comparing revenues to same quarter last year, American Airlines sales marked a tiny increase and appreciated a 1.76%. Looking back to recent quarterly results, American Airlines posted 3 negative quarters in a row.
|2017-Q2||$11,110 M||-||$803 M7.2%||-|
|2017-Q3||$10,880 M||-2.07%||$624 M5.7%||-22.29%|
|2017-Q4||$10,196 M||-6.29%||$54 M0.5%||-91.35%|
|2018-Q1||$10,401 M||2.01%||$186 M1.8%||244.44%|
|2018-Q2||$11,643 M||11.94%||$566 M4.9%||204.30%|
|2018-Q3||$11,559 M||-0.72%||$341 M3.0%||-39.75%|
|2018-Q4||$10,927 M||-5.47%||$564 M5.2%||65.40%|
|2019-Q1||$10,584 M||-3.14%||$185 M1.7%||-67.20%|
American Airlines ownershipWhen you are planning to invest in a company, it's always worth to check its ownership structure.
Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For American Airlines, 39.76% of all outstanding shares are owned by its staff.
In case of American Airlines stock, 7.82% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for AAL stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to American Airlines:
|Market cap||$12.0 B||$2.3 B||$0.0 M||$38.1 B||$1.2 B|
|Total shares||460.6 M||16.3 M||0.0 M||654.7 M||48.3 M|
|Float shares||396.1 M||11.4 M||122.8 M||574.5 M||46.1 M|
|- Institutional holdings (%)||7.8%||81.5%||89.7%||0.0%||91.7%|
|- Insider holdings (%)||39.8%||20.8%||0.4%||49.6%||2.5%|
|Shares in short selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Monday, August 19th, 2019|
|Day range||$26.08 - $26.69|
|Average true range||$1.00|
|50d mov avg||$31.11|
|100d mov avg||$31.65|
|200d mov avg||$32.86|
American Airlines performanceTo better understand American Airlines performance you must compare its gains with other related stocks in same sector or industry. In the following table, we compare American Airlines to Allegiant Travel, Alaska Air, Delta Air Lines, Hawaiian, JetBlue Airways, LATAM Airlines, Southwest Airlines, Spirit Airlines, SkyWest and United Continental:
|DALDelta Air Lines||8.20%||15.14%||4.40%|
American Airlines competitorsOne check before trading any stock is to have a look a list of its competitors, in this case for American Airlines. We picked 10 companies as American Airlines competitors as they are in the same industry or have similar market objectives.
- Allegiant Travel (ALGT)
- Alaska Air (ALK)
- Delta Air Lines (DAL)
- Hawaiian (HA)
- JetBlue Airways (JBLU)
- LATAM Airlines (LTM)
- Southwest Airlines (LUV)
- Spirit Airlines (SAVE)
- SkyWest (SKYW)
- United Continental (UAL)
Latest AAL stock news
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