American Airlines Buy Hold or Sell Recommendation

AAL -- USA Stock  

Fiscal Quarter End: December 31, 2019  

Considering 30-days investment horizon, and your above average risk tolerance our recommendation regarding American Airlines Group is 'Strong Hold'. Macroaxis provides American Airlines buy hold or sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding AAL positions. The advice algorithm takes into account all of American Airlines available fundamental, technical, and predictive indicators you will find on this site. The advice is provided from AAL buy-and-hold prospective. Check also American Airlines Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for muliple equity instruments please use Instant Ratings tool.

Time Horizon

Risk Tolerance

Symbol
Execute Advice
Sell American AirlinesBuy American Airlines
Strong Hold

Hype Condition

Current Valuation

Odds of Distress

Economic Sensitivity

Analyst Consensus

Piotroski F Score

Financial Leverage

Inapplicable
For the selected time horizon American Airlines Group has a risk adjusted performance of (0.025213), jensen alpha of (0.20), total risk alpha of (0.27), sortino ratio of 0.0 and treynor ratio of (0.07)
Macroaxis buy, hold, or sell recommendation module can be used to complement current analysts and expert consensus on American Airlines. Our buy, hold, or sell suggestion engine makes use of analyzes the corporation potential to grow using all fundamental data market data available at the time. To make sure American Airlines is not overpriced, please confirm all American Airlines fundamentals including its Current Valuation, Price to Book, Cash and Equivalents, as well as the relationship between Shares Owned by Institutions and Gross Profit . Given that American Airlines has Price to Earning of 7.91 , we suggest you validate American Airlines Group market performance and probability of bankruptcy to make sure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

American Airlines Trading Alerts and Improvement Suggestions

American Airlines has high likelihood to experience some financial distress in the next 2 years
The company has 34.44 B in debt with debt to equity (D/E) ratio of 7.53 . This implies that the company may be unable to create cash to meet all of its financial commitments. American Airlines has Current Ratio of 0.48 suggesting that it has not enough short term capital to pay financial commitments when the payables are due.
About 40.0% of American Airlines shares are held by company insiders
Latest headline from www.nasdaq.com: American Airlines Stock Sinks As Market Gains What You Should Know - Nasdaq

American Airlines current analysts recommendations

Target Median Price36.50
Target Mean Price36.83
Recommendation Mean2.50
Target High Price55.00
Number Of Analyst Opinions18
Target Low Price27.00

American Airlines Returns Distribution Density

Mean Return0.11Value At Risk3.5
Potential Upside3.13Standard Deviation2.04
 Return Density 
      Distribution 

American Airlines Greeks

α
Alpha over DOW
=0.2
β
Beta against DOW=1.74
σ
Overall volatility
=1.85
Ir
Information ratio =0.08

American Airlines Volatility Alert

American Airlines Group exhibits very low volatility with skewness of -0.51 and kurtosis of 2.02. However, we advise investors to further study American Airlines Group technical indicators to make sure all market info is available and is reliable.
    
 Better Than Average     
    
 Worse Than Average Compare American Airlines to competition

American Airlines Fundamental Vs Peers

FundamentalsAmerican AirlinesPeer Average
Return On Equity0.0095 (0.31) 
Return On Asset(0.049) (0.14) 
Profit Margin(0.06) (1.27) 
Operating Margin13.35 (5.51) 
Current Valuation41.64 B16.62 B
Shares Outstanding438.06 M571.82 M
Shares Owned by Insiders39.76 10.09 
Shares Owned by Institutions7.82 39.21 
Number of Shares Shorted38.27 M4.71 M
Price to Earning7.91 28.72 
Price to Book76.52 9.51 
Price to Sales0.27 11.42 
Revenue45.39 B9.43 B
Gross Profit12.2 B27.38 B
EBITDA6.06 B3.9 B
Net Income1.6 B570.98 M
Cash and Equivalents5.17 B2.7 B
Cash per Share11.80 5.01 
Total Debt34.44 B5.32 B
Debt to Equity7.53 48.70 
Current Ratio0.49 2.16 
Book Value Per Share(10.00) 1.93 K
Cash Flow from Operations564.12 M971.22 M
Short Ratio5.03 4.00 
Earnings Per Share3.53 3.12 
Price to Earnings To Growth0.57 4.89 
Number of Employees131.9 K18.84 K
Beta1.64-0.15
Market Capitalization12.23 B19.03 B
Total Asset48.41 B29.47 B
Retained Earnings(4.93 B)9.33 B
Working Capital(3.62 B)1.48 B
Current Asset9.98 B9.34 B
   Exercise or conversion by Beer James A of 948 shares of American Airlines subject to Rule 16b-3 [view details]
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