American Airlines Buy or Sell Recommendation

Macroaxis provides American Airlines Group Inc buy hold or sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding American Airlines positions. The advice algorithm takes into account all of American Airlines Group Inc available fundamental, technical, and predictive indicators you will find on this site. The advice is provided from American Airlines buy-and-hold prospective. Check also American Airlines Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with current analyst consensus

Investment Horizon

  

Risk Tolerance

  
Symbol
Execute Advice
American Airlines Group Inc -- USA Stock  

USD 47.70  0.64  1.36%

Considering 30-days investment horizon, and your above average risk tolerance our recommendation regarding American Airlines Group Inc is 'Strong Buy'.
For the selected time horizon American Airlines Group Inc has a risk adjusted performance of 0.0994, jensen alpha of 0.2284, total risk alpha of (0.039182), sortino ratio of 0.2523 and treynor ratio of 0.1801
Macroaxis buy, hold, or sell recommendation tool can be used to complement American Airlines buy or sell advice provided by experts. It analyzes the organization potential to grow against your specific risk preferences and investment horizon. To make sure American Airlines is not overpriced, please confirm all American Airlines Group 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 Group has Number of Shares Shorted of 36.45 M, we suggest you validate American Airlines Group Inc 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.

Returns Distribution Density

Mean Return0.5Value At Risk-2.0525
Potential Upside5.1835Standard Deviation2.108
 Return Density 
      Distribution 

Institutional Investors

Security TypeSharesValue
Price T Rowe Associates IncCommon Shares63.5 M3.2 B
Primecap Management CoCommon Shares51.5 M2.6 B
Berkshire Hathaway IncCommon Shares47 M2.4 B
Vanguard Group IncCommon Shares30.3 M1.5 B
Blackrock IncCommon Shares25.6 M1.3 B
Fmr LlcCommon Shares18.5 M932.7 M
State Street CorpCommon Shares17.6 M886.6 M
Susquehanna International Group LlpCall Options4.1 M205.2 M
Pomelo Capital LlcPut Options3.8 M193.4 M

American Airlines Greeks

α
Alpha over DOW
= 0.23 
βBeta against DOW= 2.73 
σ
Overall volatility
= 1.88 
 IrInformation ratio = 0.19 

American Airlines Volatility Alert

American Airlines Group Inc has relatively low volatility with skewness of 0.79 and kurtosis of 0.87. However, we advise all investors to independently investigate American Airlines Group Inc to ensure market all accessible information is consistent with the expectations about its upside potential and future risk-adjusted return.
    
 Better Than Average     
    
 Worse Than Average Compare American Airlines to competition
FundamentalsAmerican AirlinesPeer Average
Return On Equity51.40 % (15.17) %
Return On Asset6.24 % (15.64) %
Profit Margin5.02 % (5.50) %
Operating Margin12.68 % (10.91) %
Current Valuation40.38 B152.14 B
Shares Outstanding487.01 M1.43 B
Shares Owned by Insiders45.75 % 6.91 %
Shares Owned by Institutions6.15 % 18.37 %
Number of Shares Shorted36.45 M3.24 M
Price to Earning11.84 times40.69 times
Price to Book6.26 times14.44 times
Price to Sales0.57 times17.81 times
Revenue41.11 B9.85 B
Gross Profit30.3 B21.75 B
EBITDA7.12 B1.41 B
Net Income2.06 B517.71 M
Cash and Equivalents6.89 B3.89 B
Cash per Share14.14 times5.17 times
Total Debt24.86 B7.36 B
Debt to Equity669.10 times0.72 times
Current Ratio0.68 times3.30 times
Book Value Per Share7.62 times13.64 times
Cash Flow from Operations5.63 B1.25 B
Short Ratio6.47 times2.09 times
Earnings Per Share4.03 times2.30 times
Price to Earnings To Growth6.04 times1.22 times
Number of Employees121.8 K10.67 K
Beta1.340.34
Market Capitalization23.23 B29.78 B
Total Asset48.41 B126.86 B
Retained Earnings1.64 B38.24 B
Working Capital(3.62 B)3.58 B
Current Asset9.98 B36.8 B
SellBuy
Strong Buy

Volatility

Hype Condition

Current Valuation

Odds of Distress

Economic Sensitivity

Analyst Consensus

Piotroski F Score

Financial Leverage

Inapplicable
   American Airlines exotic insider transaction detected [view details]
Risk Adjusted Performance0.0994
Market Risk Adjusted Performance0.1901
Mean Deviation1.64
Semi Deviation1.29
Downside Deviation1.57
Coefficient Of Variation419.89
Standard Deviation2.11
Variance4.44
Information Ratio0.1876
Jensen Alpha0.2284
Total Risk Alpha(0.039182)
Sortino Ratio0.2523
Treynor Ratio0.1801
Maximum Drawdown8.53
Value At Risk(2.05)
Potential Upside5.18
Downside Variance2.46
Semi Variance1.66
Expected Short fall(2.14)
Skewness0.7924
Kurtosis0.8692

Current Valuation

American Airlines Current Valuation Analysis
American Airlines Group Inc is rated third in current valuation category among related companies. After adjusting for long-term liabilities, total market size of Airlines industry is presently estimated at about 172.73 Billion. American Airlines totals roughly 40.38 Billion in current valuation claiming about 23% of stocks in Airlines industry.