American Airlines Buy Hold or Sell Recommendation

AAL -- USA Stock  

USD 34.35  1.94  5.99%

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 0.0684, jensen alpha of 0.3275, total risk alpha of 0.4494, sortino ratio of 0.0686 and treynor ratio of 0.0987
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 26.81M, 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 Return0.16Value At Risk6.3
Potential Upside5.12Standard Deviation3.32
 Return Density 
      Distribution 

Institutional Investors

Security TypeSharesValue
Primecap Management CoCommon Shares68.9 M2.8 B
Berkshire Hathaway IncCommon Shares43.7 M1.8 B
Vanguard Group IncCommon Shares28.2 M1.2 B
Price T Rowe Associates IncCommon Shares24.4 M1 B
Blackrock IncCommon Shares23.1 M955.3 M
Harris Associates L PCommon Shares16.6 M687 M
State Street CorpCommon Shares14.3 M592.6 M
Susquehanna International Group LlpCall Options3.9 M162.5 M
Susquehanna International Group LlpPut Options3.5 M146.3 M

American Airlines Greeks

α
Alpha over DOW
=0.33
β
Beta against DOW=1.53
σ
Overall volatility
=3.29
Ir
Information ratio =0.08

American Airlines Volatility Alert

American Airlines Group shows above average downside volatility of 3.88 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 Equity67.93% (15.17)%
Return On Asset4.21% (15.64)%
Profit Margin2.62% (5.50)%
Operating Margin12.99% (10.91)%
Current Valuation35.37B152.14B
Shares Outstanding460.58M1.43B
Shares Owned by Insiders41.51% 6.91%
Shares Owned by Institutions12.08% 18.37%
Number of Shares Shorted26.81M3.24M
Price to Earning13.31X40.69X
Price to Book5.20X14.44X
Price to Sales0.34X17.81X
Revenue43.8B9.85B
Gross Profit12.76B21.75B
EBITDA5.69B1.41B
Net Income1.15B517.71M
Cash and Equivalents4.86B3.89B
Cash per Share10.54X5.17X
Total Debt24.77B7.36B
Debt to Equity638.40% 0.72%
Current Ratio0.58X3.30X
Book Value Per Share(1.23)X13.64X
Cash Flow from Operations252M1.25B
Short Ratio2.46X2.09X
Earnings Per Share2.44X2.30X
Price to Earnings To Growth0.86X1.22X
Number of Employees130.5K10.67K
Beta1.450.34
Market Capitalization14.95B29.78B
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 historical volatility and very poor performance
American Airlines has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial commitments
The company has 24.77B 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 0.57 suggesting that it has not enough short term capital to pay financial commitments when the payables are due.
About 42.0% of American Airlines Group shares are held by company insiders

Latest Analysts View

American Airlines Current Analysts Recommendations

Target Median Price47.00
Target Mean Price48.39
Recommendation Mean1.90
Target High Price70.00
Number Of Analyst Opinions18
Target Low Price37.00
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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