American Airlines Group (NASDAQ:AAL) Stock Rating Upgraded by Zacks Research

Key Points

• Zacks Research upgraded American Airlines Group from “hold” to “strong-buy”, adding to a mixed but generally cautious analyst backdrop. MarketBeat says the stock’s overall consensus rating remains “Hold” with an average target price of $19.18.
• American Airlines recently beat quarterly EPS estimates and posted revenue of $16.73 billion, up 16.3% from a year earlier. However, profitability remained weak, and the company issued a softer forward guidance for Q3 and FY 2026.
• Despite some bullish analyst moves, the stock is still facing pressure from rising jet fuel costs and investor concern over earnings durability. The shares opened at $14.48, below the recent average analyst target levels.

American Airlines Group (NASDAQ:AAL - Get Free Report) was upgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a note issued to investors on Thursday,Zacks.com reports.

AAL has been the subject of a number of other research reports. Barclays boosted their target price on shares of American Airlines Group from $16.00 to $19.00 and gave the stock an "equal weight" rating in a research note on Thursday, June 25th. The Goldman Sachs Group decreased their price target on shares of American Airlines Group from $15.00 to $13.00 and set a "sell" rating on the stock in a research note on Friday. Wells Fargo & Company reiterated a "market perform" rating on shares of American Airlines Group in a report on Tuesday, June 30th. Melius Research lowered American Airlines Group from a "buy" rating to a "hold" rating and boosted their price objective for the stock from $15.00 to $19.00 in a research note on Tuesday, July 7th. Finally, Sanford C. Bernstein increased their target price on American Airlines Group from $20.00 to $23.00 and gave the company a "market outperform" rating in a report on Wednesday, July 1st. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average target price of $19.18.

American Airlines Group Stock Performance

American Airlines Group stock opened at $14.48 on Thursday. The company's fifty day moving average price is $15.35 and its 200 day moving average price is $13.71. American Airlines Group has a 1 year low of $10.09 and a 1 year high of $18.79. The stock has a market capitalization of $9.58 billion, a P/E ratio of -29.55 and a beta of 1.32.

American Airlines Group (NASDAQ:AAL - Get Free Report) last issued its quarterly earnings results on Thursday, July 23rd. The airline reported $0.15 EPS for the quarter, topping the consensus estimate of $0.03 by $0.12. The company had revenue of $16.73 billion during the quarter, compared to analyst estimates of $16.70 billion. American Airlines Group had a negative net margin of 0.56% and a negative return on equity of 9.11%. The firm's revenue was up 16.3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.95 EPS. American Airlines Group has set its Q3 2026 guidance at -0.700--0.100 EPS and its FY 2026 guidance at -0.650-0.650 EPS. Sell-side analysts predict that American Airlines Group will post 0.2 EPS for the current year.

Insider Buying and Selling at American Airlines Group

In related news, COO David Seymour sold 69,343 shares of the business's stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of $17.00, for a total transaction of $1,178,831.00. Following the transaction, the chief operating officer directly owned 1,025,489 shares in the company, valued at approximately $17,433,313. The trade was a 6.33% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Corporate insiders own 0.70% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Gradient Investments LLC purchased a new stake in shares of American Airlines Group in the second quarter valued at approximately $2,844,000. Kwmg LLC lifted its position in American Airlines Group by 3.3% during the second quarter. Kwmg LLC now owns 502,506 shares of the airline's stock worth $9,080,000 after buying an additional 16,070 shares in the last quarter. Assenagon Asset Management S.A. boosted its stake in American Airlines Group by 1,025.5% during the second quarter. Assenagon Asset Management S.A. now owns 1,191,912 shares of the airline's stock worth $21,538,000 after buying an additional 1,086,013 shares during the last quarter. Evanson Financial LLC purchased a new stake in American Airlines Group in the 2nd quarter valued at $201,000. Finally, Gainplan LLC purchased a new stake in American Airlines Group in the 2nd quarter valued at $453,000. 52.44% of the stock is currently owned by institutional investors and hedge funds.

Key American Airlines Group News

Here are the key news stories impacting American Airlines Group this week:

• Positive Sentiment: JPMorgan raised its price target on AAL to $24 from $22 and kept an overweight rating, signaling greater confidence in the stock’s upside after the post-earnings pullback. Benzinga
• Positive Sentiment: Zacks added American Airlines to its Rank #1 (Strong Buy) list, while other commentary said the stock looks technically oversold and could be due for a turnaround. Zacks
• Positive Sentiment: Analysts and market commentary pointed to improving sentiment around revenue strategy, premium demand, loyalty growth, and network gains, which supports the case for a recovery after the stock’s recent drop. Yahoo Finance
• Neutral Sentiment: American Airlines reported record quarterly revenue of $16.74 billion and beat EPS expectations, but investors are balancing that strength against a sharp profit decline year over year and a weaker full-year outlook. GlobeNewswire
• Negative Sentiment: The main pressure point remains surging jet fuel costs, which led American Airlines to cut its earnings guidance and cloud the profit outlook despite strong demand trends. CNBC

American Airlines Group Company Profile

American Airlines Group Inc is a leading global airline holding company headquartered in Fort Worth, Texas. Formed in December 2013 through the merger of AMR Corporation (parent of American Airlines) and US Airways Group, the company operates one of the world's largest passenger and cargo networks. Its subsidiaries include American Airlines, which provides mainline service, and American Eagle, a network of regional carriers operating short- and medium-haul routes on behalf of the mainline carrier.

The company offers scheduled air transportation for passengers and cargo to more than 350 destinations in over 50 countries.

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