AAL stock: buy or sell?

AAL stock price: $26.10 1.20% At close on August 19th, 2019

Updated on:
August 19th, 2019

1

Shares of American Airlines ended today at $26.10 and grew a good 1.20%. On Wednesday AAL collapsed a bloodcurdling -5.40%.

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.

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 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.
Is AAL a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
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
2019-4-4Bank of AmericaBuyBuy
2019-4-29Deutsche BankHoldBuy
2019-3-8CitigroupBuyBuy
2019-3-15Imperial CapitalOutperformOutperform
2019-3-1Deutsche BankBuyHold
2019-2-8Argusn/aHold
2019-2-4Vertical Researchn/aHold
2019-1-9Imperial CapitalOutperformOutperform
2019-1-25Imperial CapitalOutperformOutperform

AAL stock analysis

Daily outlook

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.

AAL stock chart (daily)

Weekly outlook

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 chart (weekly)

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 $42.50

Predicting 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:
AAL stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
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%
2019-4-4Bank of AmericaReiterates$42.00$39.00-7.1%
2019-4-29Deutsche BankUpgradesn/a$40.00-
2019-3-8CitigroupLowers Target$59.00$56.00-5.1%
2019-3-15Imperial CapitalReiterates$46.00$43.00-6.5%
2019-3-1Deutsche BankDowngrades$47.00$40.00-14.9%
2019-1-9Imperial CapitalLowers Target$55.00$45.00-18.2%
2019-1-25Imperial CapitalReiterates$42.00$46.009.5%
(in average)$47.90$42.50-11.0%
The price forecast for American Airlines stock is $42.50, moving in a range between $56.00 and $26.00. In average, analysts' outlook on AAL price forecast is negative, downsizing the target by a -11.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since 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.
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 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%

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 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.
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 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:

AALALGTALKDALHA
Market cap$12.0 B$2.3 B$0.0 M$38.1 B$1.2 B
Total shares460.6 M16.3 M0.0 M654.7 M48.3 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

Monday, August 19th, 2019
Open$25.62
Close$26.10
Day range$26.08 - $26.69
Previous close$25.79
Session gain1.20%
Average true range$1.00
50d mov avg$31.11
100d mov avg$31.65
200d mov avg$32.86
Daily patternlb06a
Weekly pattern

American Airlines performance

To 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:
Stock3m6m12m
AALAmerican Airlines-10.22%-25.98%-31.96%
ALGTAllegiant Travel-0.03%3.64%6.95%
ALKAlaska Air0.58%-1.78%-4.52%
DALDelta Air Lines8.20%15.14%4.40%
HAHawaiian-0.32%-19.35%-38.29%
JBLUJetBlue Airways4.98%6.50%-1.56%
LTMLATAM Airlines5.24%-22.66%-7.05%
LUVSouthwest Airline...-0.63%-4.92%-16.16%
SAVESpirit Airlines-18.24%-35.81%-15.47%
SKYWSkyWest-6.41%0.34%-8.19%
UALUnited Continenta...3.84%-6.19%-1.47%

American Airlines competitors

One 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.

Latest AAL stock news