Grupo Aeromexico (NYSE:AERO) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded Grupo Aeromexico from “strong buy” to “hold,” although the broader analyst consensus remains “Moderate Buy” with a $28.06 target price.
• Shares opened at $14.64, down 3.3%, trading below their 50-day and 200-day moving averages. The company recently reported a quarterly EPS loss of $0.40, missing estimates by $0.03, on $1.48 billion in revenue.
• Insider Aaron James Murray sold 355,600 shares for approximately $561,848, reducing his position by nearly 22%; corporate insiders own 12.82% of the stock.

Grupo Aeromexico (NYSE:AERO - Get Free Report) was downgraded by equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued on Thursday,Zacks.com reports.

AERO has been the topic of a number of other reports. Jefferies Financial Group started coverage on shares of Grupo Aeromexico in a research report on Thursday, June 18th. They set a "hold" rating and a $20.00 price target on the stock. Weiss Ratings cut shares of Grupo Aeromexico from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, July 17th. JPMorgan Chase & Co. dropped their price objective on Grupo Aeromexico from $28.00 to $26.50 and set an "overweight" rating on the stock in a research note on Friday, June 12th. Finally, Wall Street Zen lowered Grupo Aeromexico from a "buy" rating to a "hold" rating in a report on Tuesday, July 28th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $28.06.

Grupo Aeromexico Trading Down 3.3%

Shares of NYSE:AERO opened at $14.64 on Thursday. Grupo Aeromexico has a 1-year low of $12.26 and a 1-year high of $23.05. The stock has a market capitalization of $2.00 billion and a P/E ratio of 34.86. The business has a 50-day moving average price of $15.96 and a two-hundred day moving average price of $16.09.

Grupo Aeromexico (NYSE:AERO - Get Free Report) last issued its earnings results on Tuesday, July 14th. The company reported ($0.40) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.37) by ($0.03). Grupo Aeromexico had a net margin of 3.78% and a negative return on equity of 25.10%. The business had revenue of $1.48 billion during the quarter. As a group, equities analysts predict that Grupo Aeromexico will post 0.7 EPS for the current year.

Insider Buying and Selling at Grupo Aeromexico

In other news, insider Aaron James Murray sold 355,600 shares of the firm's stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of $1.58, for a total transaction of $561,848.00. Following the completion of the transaction, the insider directly owned 1,262,530 shares of the company's stock, valued at $1,994,797.40. This trade represents a 21.98% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 12.82% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Public Employees Retirement System of Ohio bought a new stake in Grupo Aeromexico during the 1st quarter worth about $56,000. R Squared Ltd bought a new position in shares of Grupo Aeromexico in the 1st quarter valued at about $163,000. Federated Hermes Inc. bought a new position in shares of Grupo Aeromexico in the 4th quarter valued at about $220,000. Sandia Investment Management LP acquired a new stake in shares of Grupo Aeromexico in the fourth quarter valued at about $220,000. Finally, Quarry LP acquired a new stake in shares of Grupo Aeromexico in the fourth quarter valued at about $232,000.

Grupo Aeromexico Company Profile

Grupo Aeroméxico is the parent company of Aeroméxico, Mexico’s long-established flag carrier and commercial airline group. The company operates scheduled passenger and cargo services, with a network that connects domestic destinations across Mexico and international markets in the Americas, Europe and Asia. Grupo Aeroméxico’s operations include mainline services as well as regional flying through its regional affiliates, airport ground-handling and cargo divisions that support its commercial network.

The carrier deploys a mix of narrow-body and wide-body aircraft to serve short-, medium- and long-haul routes, using single-aisle jets for domestic and regional markets and wide-body equipment for transcontinental services.

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