American Airlines Buy Hold or Sell Recommendation

AAL -- USA Stock  

USD 32.68  0.12  0.37%

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 (0.012893), jensen alpha of (0.01747), total risk alpha of 0.0233, sortino ratio of 0.0 and treynor ratio of (0.041502)
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 22.15M, 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
American Airlines has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial commitments
The company has 33.44B 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 0.43 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

American Airlines current analysts recommendations

Target Median Price41.00
Target Mean Price42.22
Recommendation Mean2.10
Target High Price60.00
Number Of Analyst Opinions18
Target Low Price32.00

American Airlines Returns Distribution Density

Mean Return0.06Value At Risk3.34
Potential Upside4.26Standard Deviation2.23
 Return Density 

Institutional Investors

Security TypeSharesValue
Primecap Management CoCommon Shares68.8 M2.2 B
Berkshire Hathaway IncCommon Shares43.7 M1.4 B
Vanguard Group IncCommon Shares36 M1.1 B
Blackrock IncCommon Shares23.1 M732.4 M
Harris Associates L PCommon Shares18.9 M600.7 M
State Street CorpCommon Shares14.2 M450.9 M
Fmr LlcCommon Shares12 M381.2 M
Susquehanna International Group LlpPut Options4.7 M150.2 M
Susquehanna International Group LlpCall Options3.6 M114.7 M

American Airlines Greeks

Alpha over DOW
Beta against DOW=1.63
Overall volatility
Information ratio =0.02

American Airlines Volatility Alert

American Airlines Group exhibits very low volatility with skewness of 1.18 and kurtosis of 2.69. 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% (0.31)%
Return On Asset3.97% (0.14)%
Profit Margin3.22% (1.27)%
Operating Margin13.01% (5.51)%
Current Valuation43.47B16.62B
Shares Outstanding444.84M571.82M
Shares Owned by Insiders39.76% 10.09%
Shares Owned by Institutions7.82% 39.21%
Number of Shares Shorted22.15M4.71M
Price to Earning10.18X28.72X
Price to Book5.20X9.51X
Price to Sales0.32X11.42X
Gross Profit12.2B27.38B
Net Income1.44B570.98M
Cash and Equivalents4.35B2.7B
Cash per Share9.78X5.01X
Total Debt33.44B5.32B
Debt to Equity638.40% 48.70%
Current Ratio0.44X2.16X
Book Value Per Share(1.43)X1.93K
Cash Flow from Operations324.88M971.22M
Short Ratio3.61X4.00X
Earnings Per Share3.12X3.12X
Price to Earnings To Growth0.41X4.89X
Number of Employees129.8K18.84K
Market Capitalization14.12B19.03B
Total Asset48.41B29.47B
Retained Earnings1.64B9.33B
Working Capital(3.62B)1.48B
Current Asset9.98B9.34B
   Acquisition by Arpey Gerard J of 44000 shares of American Airlines subject to Rule 16b-3 [view details]