American Airlines Buy Hold or Sell Recommendation

AAL -- USA Stock  

Potential Growth

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

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

For the selected time horizon American Airlines Group has a risk adjusted performance of 0.0139, jensen alpha of (0.1), total risk alpha of (0.20), sortino ratio of (0.022564) and treynor ratio of 0.0076
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 generates negative expected return over the last 30 days
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 Taking The Irrefutable Step American Airlines Group Inc., - Money Making News

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 Return0.023118Value At Risk3.5
Potential Upside3.08Standard Deviation2.05
 Return Density 

Institutional Investors

Security TypeSharesValue
Primecap Management CoCommon Shares68.5 M1.8 B
Berkshire Hathaway IncCommon Shares43.7 M1.2 B
Vanguard Group IncCommon Shares42.9 M1.2 B
Blackrock IncCommon Shares22.8 M615.5 M
Harris Associates L PCommon Shares18 M485.4 M
State Street CorpCommon Shares13.5 M362.8 M
Fmr LlcCommon Shares9.8 M264 M
Susquehanna International Group LlpCall Options4.7 M125.6 M
Susquehanna International Group LlpPut OptionsM106.9 M

American Airlines Greeks

Alpha over DOW
Beta against DOW=1.73
Overall volatility
Information ratio =0.02

American Airlines Volatility Alert

American Airlines Group currently demonstrates below average downside deviation of 2.21. It has Information Ratio of -0.02 and Jensen Alpha of -0.1. However, we do advice investors to further question American Airlines Group expected returns to make sure all indicators are consistent with the current outlook about its relatively low value at risk.
 Better Than Average     
 Worse Than Average Compare American Airlines to competition

American Airlines Fundamental Vs Peers

FundamentalsAmerican AirlinesPeer Average
Return On Equity0.95 (0.31) 
Return On Asset0.0004 (0.14) 
Profit Margin0.0004 (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 Growth0.58 4.89 
Number of Employees131.9 K18.84 K
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
   Acquisition by Boren David L of tradable shares of American Airlines subject to Rule 16b-3 [view details]