Grupo Aeromexico (NYSE:AERO) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Analyst consensus is “Moderate Buy”: Seven of 11 brokerages rate Grupo Aeromexico a buy, with one strong buy, two holds, and one sell. The average 12-month price target is $28.06, well above the reported $14.85 share price.
• Recent financial performance fell short of expectations: The airline reported quarterly EPS of negative $0.40, missing the consensus estimate of negative $0.37, on revenue of $1.48 billion. Analysts expect full-year EPS of approximately $0.50.
• Trading and ownership developments were mixed: The stock has traded between $12.26 and $23.05 over the past year, while an insider sold 355,600 shares and several hedge funds established or increased positions in the company.

Grupo Aeromexico (NYSE:AERO - Get Free Report) has been assigned a consensus recommendation of "Moderate Buy" from the eleven brokerages that are presently covering the firm, MarketBeat Ratings reports. One research analyst has rated the stock with a sell rating, two have given a hold rating, seven have issued a buy rating and one has issued a strong buy rating on the company. The average 1-year price target among brokerages that have issued a report on the stock in the last year is $28.0625.

Several research analysts have weighed in on AERO shares. Zacks Research downgraded Grupo Aeromexico from a "strong-buy" rating to a "hold" rating in a research note on Thursday, August 27th. Jefferies Financial Group began coverage on Grupo Aeromexico in a research report on Thursday, June 18th. They set a "hold" rating and a $20.00 price objective for the company. Weiss Ratings cut Grupo Aeromexico from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, July 17th. Wall Street Zen cut shares of Grupo Aeromexico from a "buy" rating to a "hold" rating in a research report on Tuesday, July 28th. Finally, JPMorgan Chase & Co. lowered their price target on shares of Grupo Aeromexico from $28.00 to $26.50 and set an "overweight" rating for the company in a report on Friday, June 12th.

Grupo Aeromexico Trading Up 0.5%

Grupo Aeromexico stock opened at $14.85 on Friday. Grupo Aeromexico has a 12-month low of $12.26 and a 12-month high of $23.05. The firm has a market capitalization of $2.03 billion and a price-to-earnings ratio of 35.35. The firm has a 50 day moving average of $15.30 and a 200 day moving average of $15.66.

Grupo Aeromexico (NYSE:AERO - Get Free Report) last announced its quarterly earnings data on Tuesday, July 14th. The company reported ($0.40) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.37) by ($0.03). Grupo Aeromexico had a negative return on equity of 25.10% and a net margin of 3.78%.The firm had revenue of $1.48 billion during the quarter. On average, analysts predict that Grupo Aeromexico will post 0.5 EPS for the current year.

Insider Activity at Grupo Aeromexico

In other news, insider Aaron Murray sold 355,600 shares of the stock in a transaction that occurred on Wednesday, August 12th. The stock was sold at an average price of $1.58, for a total value of $561,848.00. Following the sale, the insider directly owned 1,262,530 shares in the company, valued at approximately $1,994,797.40. This represents a 21.98% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Corporate insiders own 12.82% of the company's stock.

Hedge Funds Weigh In On Grupo Aeromexico

Several hedge funds have recently bought and sold shares of the business. Strategic Value Partners LLC purchased a new stake in Grupo Aeromexico in the fourth quarter worth $208,318,000. Baupost Group LLC MA purchased a new position in Grupo Aeromexico in the 4th quarter worth about $106,620,000. Oaktree Capital Management LP lifted its holdings in Grupo Aeromexico by 5.1% during the 1st quarter. Oaktree Capital Management LP now owns 3,968,686 shares of the company's stock valued at $55,601,000 after buying an additional 191,700 shares in the last quarter. 140 Summer Partners LP purchased a new stake in Grupo Aeromexico in the 4th quarter valued at about $28,513,000. Finally, Fourth Sail Capital LP bought a new position in Grupo Aeromexico in the 4th quarter worth about $24,156,000.

Grupo Aeromexico Company Profile

Grupo Aeroméxico, SAB. de C.V. is a Mexican airline holding company whose principal business is the operation of scheduled passenger and cargo air transportation services. Through its airline operations, the company serves domestic routes within Mexico as well as international destinations in North, Central and South America, Europe and Asia.

The company's primary carrier, Aeroméxico, offers commercial air travel under the Aeroméxico brand, while Aeroméxico Connect provides regional and short- to medium-haul service.

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