AAL stock: buy or sell?

AAL stock price: $27.82 -2.42% At close on February 21st, 2020

Updated on:
February 21st, 2020

1

Shares of American Airlines eased an awful -2.42% and closed at $27.82.

Should I buy AAL stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. That's why is so important to choose your own trading plan that fits your character as inversor. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, American Airlines stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean AAL will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is American Airlines stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. Unfortunately, we couldn't find any rating for AAL stock for the last month.

AAL stock analysis

Daily outlook

American Airlines shares eased -2.42% to $27.82 on Feb/21.

American Airlines shares eased -2.42% to $27.82 on February 21st. Since price and SMA200d lines crossed down on Tuesday, AAL fell $-1.38 per share (-4.73%).

AAL stock chart (daily)

Weekly outlook

Shares of American Airlines collapsed a terrible -4.73% this week. Early February AAL rocketed an extraordinary 5.78% in just one week.

This week, American Airlines stock lost the significant level of the 40-weeks moving average. Trading stocks that are below the 40-weeks (that is, 200-days) moving average mark is not recommended by many experts, as it indicates that the stock has not enough institutional support.

AAL stock chart (weekly)

AAL stock price history

AAL IPO was on September 27th, 2005 at $19.84 per share1. Since then, AAL stock surged a 40.20%, with an average of 2.90% per year. If you had invested $1,000 in AAL stock in 2005, it would worth $402.00 today.

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

AAL stock historical price chart

AAL stock reached 52-week highs at $36.24, and all-time highs 2006-11-24 with a price of 59.65.

AAL stock price target

Nobody can reliably foresee how stock prices may evolve in the future. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. 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 have not detected any price prediction for American Airlines stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since last April, when American Airlines published its last earnings report, it . As soon as we get its posted EPS from the earnings report, we will extend this review.
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 inched a fine 4.51% to $44,530.00 M USD from $42,610.00 marked in 2017. Slightly worse, its profit margin (compared to sales) stayed constant 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 million USD. When comparing this TTM figures with the last reported annuality, we can esteem American Airlines business evolution since December 2018: Annual sales up to March, compared to lastest yearly report, remained constant 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 reported $10,584.00 million in revenues for 2019-Q1, a -3.14% less compared to previous quarter. Reported quarter income marked $185.00 million with a profit margin of 1.75%. Profit margin declined 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 gain and stepped up a 1.76%. Looking back to recent quarterly results, American Airlines posted 3 positive 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 shares of a company, it's worth to have a look its ownership structure.

American Airlines shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 40.01% of all shares.

In case of American Airlines stock, 5.17% 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:

AAL
Market cap$11.9 B
Total shares428.2 M
Float shares429.3 M
  - Institutional holdings (%)5.2%
  - Insider holdings (%)40.0%
Shares in short selling0.0%

AAL summary

Friday, February 21st, 2020
Open$28.12
Close$27.82
Day range$27.17 - $28.30
Previous close$28.51
Session gain-2.42%
Average true range$0.97
50d mov avg$28.05
100d mov avg$28.22
200d mov avg$28.97
Daily pattern
Weekly pattern

American Airlines performance

To measure stock performance is always good to compare with competitors or related stocks. For American Airlines, the benchmark is made against .
Stock3m6m12m
AALAmerican Airlines-2.63%10.22%-20.56%

American Airlines competitors

Unfortunately, we could not find any public company that could be defined as American Airlines competitor. This doesn't mean American Airlines does not have any competitor in the market, it's just we could not detected it.

    Latest AAL stock news