American Airlines Buy Hold or Sell Recommendation

AAL -- USA Stock  

USD 30.57  0.88  2.80%

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 (0.06), jensen alpha of (0.26), total risk alpha of (0.42), sortino ratio of 0.0 and treynor ratio of (0.46)
Macroaxis buy, hold, or sell suggestion module can be used to complement American Airlines buy, hold, or sell recommendation provided by average analyst sentiment. It analyzes the organization potential to grow using fundamental, technical, 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 Number of Shares Shorted of 20.81M, 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 Thematic Classifications

Transportation IdeaTransportation
USA Equities from Transportation industry as classified by Fama & French

American Airlines Returns Distribution Density

Mean Return0.22Value At Risk3.33
Potential Upside3.92Standard Deviation2.16
 Return Density 
      Distribution 

Institutional Investors

Security TypeSharesValue
Primecap Management CoCommon Shares68.9 M2.2 B
Berkshire Hathaway IncCommon Shares43.7 M1.4 B
Vanguard Group IncCommon Shares29.1 M933.2 M
Blackrock IncCommon Shares23.6 M756.4 M
Harris Associates L PCommon Shares19 M608.5 M
Fmr LlcCommon Shares14.2 M456.8 M
State Street CorpCommon Shares14.1 M453.6 M
Susquehanna International Group LlpCall Options8.5 M271.7 M
Susquehanna International Group LlpPut Options6.3 M203.5 M

American Airlines Greeks

α
Alpha over DOW
=0.26
β
Beta against DOW=0.50
σ
Overall volatility
=2.06
Ir
Information ratio =0.13

American Airlines Volatility Alert

American Airlines Group exhibits very low volatility with skewness of 0.78 and kurtosis of 0.96. 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 Equity75.17% (15.17)%
Return On Asset4.14% (15.64)%
Profit Margin3.17% (5.50)%
Operating Margin13.27% (10.91)%
Current Valuation43B152.14B
Shares Outstanding449.06M1.43B
Shares Owned by Insiders39.76% 6.91%
Shares Owned by Institutions12.65% 18.37%
Number of Shares Shorted20.81M3.24M
Price to Earning10.09X40.69X
Price to Book5.20X14.44X
Price to Sales0.31X17.81X
Revenue44.54B9.85B
Gross Profit12.2B21.75B
EBITDA5.91B1.41B
Net Income1.41B517.71M
Cash and Equivalents4.76B3.89B
Cash per Share10.60X5.17X
Total Debt34.03B7.36B
Debt to Equity638.40% 0.72%
Current Ratio0.48X3.30X
Book Value Per Share(0.37)X13.64X
Cash Flow from Operations733.37M1.25B
Short Ratio2.86X2.09X
Earnings Per Share3.03X2.30X
Price to Earnings To Growth0.29X1.22X
Number of Employees128.9K10.67K
Beta1.690.34
Market Capitalization13.73B29.78B
Total Asset48.41B126.86B
Retained Earnings1.64B38.24B
Working Capital(3.62B)3.58B
Current Asset9.98B36.8B
   American Airlines exotic insider transaction detected [view details]

American Airlines Alerts

Trading Alerts and Improvement Suggestions

American Airlines generates negative expected return over the last 30 days
American Airlines has high likelihood to experience some financial distress in the next 2 years
American Airlines has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial commitments
The company has 34.03B in debt with debt to equity (D/E) ratio of 638.4 . This implies that the company may be unable to create cash to meet all of its financial commitments. American Airlines has Current Ratio of 0.47 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 Analysts View

American Airlines Current Analysts Recommendations

Target Median Price43.00
Target Mean Price45.00
Recommendation Mean2.10
Target High Price60.00
Number Of Analyst Opinions18
Target Low Price34.00
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. Please also try Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Search macroaxis.com