AAL stock: buy or sell?

AAL stock price: $28.22 1.04% At close on October 18th, 2019

Updated on:
October 18th, 2019

2

American Airlines ended on October/18 at $28.22 and inched a good 1.04%.

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. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best time to buy them. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with American Airlines stock situation right now, hence this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is American Airlines stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we gathered 15 ratings published for AAL stock in the last 30 days.

Is AAL a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-6Berenberg Bankn/aBuy
2019-9-4Deutsche Bankn/aBuy
2019-9-30National Bank Financialn/aOutperform
2019-9-26UBS Groupn/aSell
2019-9-20Liberum Capitaln/aSell
2019-9-11UBS Groupn/aSell
2019-9-10Morgan Stanleyn/aUnderweight
2019-8-29Deutsche Bankn/aBuy
2019-8-22Liberum Capitaln/aSell
2019-7-8Credit Suisse GroupNeutralUnderperform
2019-7-29MacquarieOutperformNeutral
2019-7-11Buckingham Researchn/aBuy
2019-5-20Morgan StanleyEqual WeightUnderweight
2019-5-20Barclaysn/aOverweight
2019-4-9Cowenn/aOutperform

AAL stock analysis

Daily outlook

American Airlines closed on Oct/18 at $28.22 and inched a good 1.04%.

American Airlines shares inched 1.04% to $28.22 on Oct 18th.

AAL stock chart (daily)

Weekly outlook

After boosting an impressive 5.59% in a week last week, American Airlines closed this week at $28.22 and jumped a shining 3.14%. By mid September AAL collapsed a hair-raising -7.00% in just one week.

The downtrend marked by AAL has left consecutive falling peaks and bottoms. There is a chance to rebound and reverse this situation if price can hold above the level.

AAL stock chart (weekly)

AAL stock price history

AAL stock went public on September 27th, 2005 with a price of $19.981. Since then, AAL stock surged a 41.20%, with an average of 2.90% per year. If you had invested right after AAL's IPO a $1,000 in AAL stock in 2005, it would worth $412.00 today.

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

AAL stock historical price chart

AAL stock reached 52-week highs on December at $40.21, and all-time highs 2006-11-24 with a price of 60.06.

AAL stock price target is $36.50

Nobody can reliably foresee how stock prices may evolve in the future. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last 30 days we found 6 price targets for American Airlines stock:
AAL stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-6Berenberg BankInitiatesn/a$35.00-
2019-9-10Morgan StanleyLowers Target$26.00$25.00-3.8%
2019-7-11Buckingham ResearchLowers Target$45.00$43.00-4.4%
2019-5-20Morgan StanleyDowngrades$40.00$26.00-35%
2019-5-20BarclaysLowers Target$60.00$48.00-20%
2019-4-9CowenLowers Target$43.00$42.00-2.3%
(in average)$42.80$36.50-15.0%
Moving in a range from $48.00 and $25.00, the price target for American Airlines stock is $36.50. In average, analysts' outlook on AAL price forecast is negative, reducing the prediction by a -15.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

After publishing its last earnings report on April, American Airlines . As soon as we get its posted EPS from the earnings report, we will update this report.
AAL earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/an/an/a
2017-Q32017-10-261.41.421.4%
2017-Q42018-01-250.920.953.3%
2018-Q12018-04-260.740.751.4%
2018-Q22018-07-261.591.632.5%
2018-Q32018-10-251.121.130.9%
2018-Q42019-01-241.021.042.0%
2019-Q12019-04-240.62n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, American Airlines annual turnover grew a fine 4.51% to $44,530.00 M USD from $42,610.00 marked in 2017. When comparing 2018 vs 2017, slightly worse, profit margin (that is, the net income divided by revenues) remained steady a 0.71% to 3.72%.

To have an up to date view of the financial situation of American Airlines, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual American Airlines TTM sales up to March 2019 were $44,713.00 and earnings were $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 sales up to March, compared to lastest yearly report, stayed steady a tight 0.41%. Regarding profit margin, American Airlines remained constant -0.02% to 3.72%

AAL annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$26,740 M-$-1,830.00 M-6.8%-
2014$42,650 M59.50%$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 M6.05%$1,285 M3.0%-51.98%
2018$44,530 M4.51%$1,658 M3.7%29.03%
TTM $44,713 M0.41%$1,656 M3.7%-0.12%

Quarterly financial results

American Airlines posted $10,584.00 M in sales for 2019-Q1, a -3.14% decline compared to previous quarter. Reported quarter income marked $185.00 M with a profit margin of 1.75%. Profit margin slightly fell 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 slightly fine increase and raised a 1.76%. Looking back to recent quarterly results, American Airlines posted 3 negative quarters in a row.
AAL quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
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 M2.01%$186 M1.8%244.44%
2018-Q2$11,643 M11.94%$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 ownership

When you are planning to invest in a company, it's worth to overview 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:

AALALGTALKDALHA
Market cap$12.6 B$2.5 B$8.2 B$35.0 B$1.3 B
Total shares445.3 M16.3 M123.3 M650.2 M47.3 M
Float shares396.1 M11.4 M122.8 M574.5 M46.1 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 selling0.0%0.0%0.0%0.0%0.0%

AAL summary

Friday, October 18th, 2019
Open$27.80
Close$28.22
Day range$27.71 - $28.32
Previous close$27.93
Session gain1.04%
Average true range$0.91
50d mov avg$27.14
100d mov avg$29.28
200d mov avg$31.22
Daily pattern
Weekly pattern lt02a

American Airlines performance

To better understand American Airlines performance you must becnhmark its gains with other related stocks in same sector or industry. We picked Allegiant Travel, Alaska Air, Delta Air Lines, Hawaiian, JetBlue Airways, LATAM Airlines, Southwest Airlines, Spirit Airlines, SkyWest and United Continental as the bechmarking frame for American Airlines stock.
Stock3m6m12m
AALAmerican Airlines-14.38%-17.36%-10.87%
ALGTAllegiant Travel6.12%17.00%29.36%
ALKAlaska Air5.89%9.63%9.13%
DALDelta Air Lines-11.05%-6.30%3.44%
HAHawaiian4.49%-5.83%-15.59%
JBLUJetBlue Airways-10.31%0.00%2.66%
LTMLATAM Airlines23.27%11.04%35.71%
LUVSouthwest Airline...3.16%3.24%-6.76%
SAVESpirit Airlines-27.73%-34.54%-27.57%
SKYWSkyWest-4.54%-3.81%12.29%
UALUnited Continenta...-3.99%2.05%3.04%

American Airlines competitors

One check before investing in any stock is to have a look a list of its competitors, in this case for American Airlines. We selected 10 companies as American Airlines competitors as they are in the same industry or have similar market objectives.

Latest AAL stock news