American Airlines Buy Hold or Sell Recommendation

AAL -- USA Stock  

USD 43.60  1.62  3.86%

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 Group 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 0.0819, jensen alpha of 0.05, total risk alpha of 0.35, sortino ratio of 0.0554 and treynor ratio of 0.1287
American Airlines buy, hold, or sell suggestion module can be used to check and cross-verify current buy, hold, or sell recommendation provided by analysts analyzing the organization potential to grow using all of fundamental, technical, data market data available at the time. 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 26.09 M, 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

Shipping Containers IdeaShipping Containers
USA Equities from Shipping Containers industry as classified by Fama & French

American Airlines Returns Distribution Density

Mean Return0.34Value At Risk3.72
Potential Upside3.17Standard Deviation2.17
 Return Density 
      Distribution 

Institutional Investors

Security TypeSharesValue
Primecap Management CoCommon Shares59.3 M2.3 B
Price T Rowe Associates IncCommon Shares49.6 M1.9 B
Berkshire Hathaway IncCommon Shares44.7 M1.7 B
Vanguard Group IncCommon Shares28.7 M1.1 B
Blackrock IncCommon Shares23.7 M898.5 M
Harris Associates L PCommon Shares17.3 M655.3 M
State Street CorpCommon Shares14.7 M556.8 M
Susquehanna International Group LlpPut Options3.5 M132.6 M
Susquehanna International Group LlpCall Options3.4 M127.7 M

American Airlines Greeks

α
Alpha over DOW
=0.05
β
Beta against DOW=2.53
σ
Overall volatility
=2.23
Ir
Information ratio =0.08

American Airlines Volatility Alert

American Airlines Group shows above average downside volatility of 3.2 for selected time horizon. We advise investors to further inspect American Airlines Group to make sure all market timing and asset allocation strategies are consistent with estimation about American Airlines future alpha.
    
 Better Than Average     
    
 Worse Than Average Compare American Airlines to competition

American Airlines Fundamental Vs Peers

FundamentalsAmerican AirlinesPeer Average
Return On Equity103.16 % (15.17) %
Return On Asset4.62 % (15.64) %
Profit Margin3.40 % (5.50) %
Operating Margin13.93 % (10.91) %
Current Valuation37.7 B152.14 B
Shares Outstanding460.51 M1.43 B
Shares Owned by Insiders41.50 % 6.91 %
Shares Owned by Institutions6.13 % 18.37 %
Number of Shares Shorted26.09 M3.24 M
Price to Earning14.19 times40.69 times
Price to Book5.20 times14.44 times
Price to Sales0.46 times17.81 times
Revenue43.2 B9.85 B
Gross Profit12.76 B21.75 B
EBITDA6.02 B1.41 B
Net Income1.47 B517.71 M
Cash and Equivalents4.67 B3.89 B
Cash per Share10.15 times5.17 times
Total Debt24.08 B7.36 B
Debt to Equity638.40 % 0.72 %
Current Ratio0.55 times3.30 times
Book Value Per Share1.89 times13.64 times
Cash Flow from Operations(225.88 M)1.25 B
Short Ratio4.69 times2.09 times
Earnings Per Share3.07 times2.30 times
Price to Earnings To Growth0.71 times1.22 times
Number of Employees131.6 K10.67 K
Beta1.480.34
Market Capitalization20.08 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
   Payment of 7463 shares by Derek Kerr of American Airlines subject to Rule 16b-3 [view details]

American Airlines Alerts

Trading Alerts and Improvement Suggestions

American Airlines has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial commitments
The company has 24.08 B 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 Group has Current Ratio of 0.54 suggesting that it has not enough short term capital to pay financial commitments when the payables are due.
AAL has about 4.67 B in cash with (225.88 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 10.15.
Roughly 42.0% of American Airlines Group shares are held by company insiders
On August 6, 2018 American Airlines paid $ 0.1 per share dividend to its current shareholders
Latest headline from MacroaxisInsider: Acquisition by Horton Thomas W of 170722 shares of American Airlines subject to Rule 16b-3

Latest Analysts View

American Airlines Current Analysts Recommendations

Target Median Price51.00
Target Mean Price51.53
Recommendation Mean1.90
Target High Price70.00
Number Of Analyst Opinions15
Target Low Price40.00
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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