American Airlines Group (NASDAQ:AAL) Posts Earnings Results, Beats Estimates By $0.10 EPS

Key Points

• American Airlines Group reported an earnings per share (EPS) of ($0.17), exceeding analysts' expectations of ($0.24) by $0.07.
• The airline's net margin was 1.05% with a negative return on equity of 24.55%, and the quarterly revenue increased 0.3% year-over-year.
• Institutional investors currently hold 52.44% of the stock, with key hedge funds increasing their holdings significantly during the second quarter.

American Airlines Group (NASDAQ:AAL - Get Free Report) released its earnings results on Thursday. The airline reported ($0.17) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.27) by $0.10, Zacks reports. American Airlines Group had a net margin of 1.05% and a negative return on equity of 24.55%. The company had revenue of $13.69 billion during the quarter, compared to analyst estimates of $13.65 billion. During the same period in the prior year, the firm posted $0.30 EPS. The firm's quarterly revenue was up .3% compared to the same quarter last year. American Airlines Group updated its Q4 2025 guidance to 0.450-0.750 EPS.

American Airlines Group Price Performance

Shares of American Airlines Group stock traded up $0.69 during trading on Thursday, reaching $12.78. 84,400,548 shares of the stock traded hands, compared to its average volume of 61,428,410. American Airlines Group has a 52-week low of $8.50 and a 52-week high of $19.10. The business has a fifty day simple moving average of $12.43 and a two-hundred day simple moving average of $11.57. The company has a market capitalization of $8.43 billion, a price-to-earnings ratio of 15.97, a P/E/G ratio of 3.99 and a beta of 1.36.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. Diversify Advisory Services LLC bought a new position in American Airlines Group during the second quarter valued at $118,000. NewEdge Advisors LLC increased its stake in American Airlines Group by 6.6% during the second quarter. NewEdge Advisors LLC now owns 13,251 shares of the airline's stock worth $149,000 after acquiring an additional 823 shares during the last quarter. Boothbay Fund Management LLC purchased a new stake in American Airlines Group during the second quarter valued at approximately $242,000. Orion Porfolio Solutions LLC bought a new stake in shares of American Airlines Group in the 2nd quarter valued at approximately $440,000. Finally, Brown Advisory Inc. boosted its holdings in shares of American Airlines Group by 42.6% in the 2nd quarter. Brown Advisory Inc. now owns 45,358 shares of the airline's stock worth $509,000 after purchasing an additional 13,539 shares during the period. 52.44% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities analysts have weighed in on AAL shares. Weiss Ratings reiterated a "hold (c-)" rating on shares of American Airlines Group in a research report on Wednesday, October 8th. Bank of America upped their target price on shares of American Airlines Group from $12.00 to $13.00 and gave the stock a "neutral" rating in a report on Monday, August 18th. Jefferies Financial Group increased their price target on American Airlines Group from $12.00 to $13.00 and gave the stock a "hold" rating in a research note on Wednesday, October 1st. Susquehanna boosted their price objective on American Airlines Group from $10.00 to $12.00 and gave the company a "neutral" rating in a research report on Friday, October 3rd. Finally, UBS Group upped their price objective on American Airlines Group from $12.00 to $13.00 and gave the stock a "neutral" rating in a research note on Friday, September 26th. Two investment analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, American Airlines Group has an average rating of "Moderate Buy" and an average price target of $16.59.

About American Airlines Group

American Airlines Group Inc, through its subsidiaries, operates as a network air carrier. The company provides scheduled air transportation services for passengers and cargo through its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, DC, as well as through partner gateways in London, Doha, Madrid, Seattle/Tacoma, Sydney, and Tokyo.