Companies

American Airlines Group CEO Robert D. Isom, Jr. Sells Shares

Published December 31, 2024

CEO Robert D. Isom, Jr. of American Airlines Group Inc. (NASDAQ:AAL) recently sold 102,441 shares of the company on December 27th. He executed this transaction at an average price of $17.21 per share, resulting in a total value of $1,763,009.61. After this sale, Isom owns 2,967,984 shares of American Airlines, which are valued at about $51,079,004.64. This transaction reflects a 3.34% decrease in his ownership stake in the company. The details of the sale were disclosed in a filing made with the Securities and Exchange Commission (SEC).

American Airlines Group Stock Performance

On the following Monday, the stock price of American Airlines Group increased by $0.27 to reach $17.62. A total of 20,423,189 shares changed hands, which is less than the average trading volume of 33,212,105 shares. The company's market capitalization stands at $11.58 billion. Currently, American Airlines Group has a price-to-earnings (P/E) ratio of 53.40 and a P/E-to-growth (P/E/G) ratio of 0.29. The stock has experienced a 52-week low of $9.07 and a high of $18.20, with its 50-day and 200-day moving averages at $15.12 and $12.37, respectively.

Quarterly Earnings Report

The company released its quarterly earnings report on October 24th, showing earnings per share (EPS) of $0.30, surpassing analysts' expectations of $0.16 by $0.14. The revenue for the quarter was reported at $13.65 billion, which also exceeded forecasts of $13.50 billion. The net margin for American Airlines was recorded at 0.51%, while the return on equity stood at -18.62%. Year-over-year, revenue increased by 1.2%, although EPS fell from $0.38 during the same period last year. Analysts predict an EPS of 1.62 for the current year.

Analysts’ Ratings and Forecasts

Several analysts have offered their insights into American Airlines Group's stock. On November 15th, Goldman Sachs reaffirmed a "neutral" rating with a target price of $15.00. In contrast, Sanford C. Bernstein upgraded the company's rating from "market perform" to "outperform" with a price target increase from $14.00 to $24.00 on December 10th. Other firms like Susquehanna and BNP Paribas adjusted their targets and ratings, placing emphasis on a more cautious stance. Currently, the consensus rating for the stock stands at "Moderate Buy" with a price target averaging $16.44.

Hedge Fund Investments

In recent months, various hedge funds have adjusted their positions in American Airlines Group shares. For instance, Primecap Management Co. increased its stake by 0.8%, owning 57,339,666 shares valued at $644,498,000. Similarly, U S Global Investors Inc. grew its stake by 5.9%, obtaining 9,088,188 shares worth $102,151,000. Other notable investors include Dimensional Fund Advisors LP and Toronto Dominion Bank, which saw significant increases in their holdings. Overall, institutional investors and hedge funds collectively own approximately 52.44% of the stock.

Company Overview

American Airlines Group Inc. operates as a major airline carrier, providing scheduled air transportation services for passengers and cargo from its hubs located across key cities. Their routes span not just the United States but also include international destinations through partnerships.

Investment Considerations

For those contemplating investment in American Airlines Group, they should note that while the stock holds a "Moderate Buy" rating, some analysts are suggesting alternative stocks that may present better growth opportunities.

CEO, shares, SEC