Grupo Aeromexico (NYSE:AERO) Stock Has Average Price Target of $28.06

Key Points

• Analyst consensus is “Moderate Buy”: Seven analysts rate Grupo Aeromexico a buy, one a strong buy, two a hold and one a sell. The average 12-month price target is $28.06, above the reported share price of $16.11.
• Recent results fell short of expectations: Grupo Aeromexico reported quarterly EPS of negative $0.40 versus the consensus estimate of negative $0.37, on revenue of $1.48 billion. Analysts expect full-year EPS of $0.50.
• Shares remain below their annual high: AERO has traded between $12.26 and $23.05 over the past year, with a market capitalization of approximately $2.20 billion and a P/E ratio of 38.35.

Shares of Grupo Aeromexico (NYSE:AERO - Get Free Report) have received an average recommendation of "Moderate Buy" from the eleven research firms that are covering the stock, MarketBeat reports. One analyst has rated the stock with a sell recommendation, two have issued a hold recommendation, seven have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month price target among brokers that have issued ratings on the stock in the last year is $28.06.

A number of equities analysts recently issued reports on AERO shares. Wall Street Zen cut Grupo Aeromexico from a "buy" rating to a "hold" rating in a report on Tuesday, July 28th. Jefferies Financial Group started coverage on shares of Grupo Aeromexico in a research note on Thursday, June 18th. They set a "hold" rating and a $20.00 price target for the company. Zacks Research downgraded shares of Grupo Aeromexico from a "strong-buy" rating to a "hold" rating in a report on Thursday, August 27th. Finally, Weiss Ratings downgraded shares of Grupo Aeromexico from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, July 17th.

Grupo Aeromexico Stock Performance

AERO stock opened at $16.11 on Tuesday. The stock's 50 day simple moving average is $15.41 and its 200 day simple moving average is $15.76. The company has a market cap of $2.20 billion and a P/E ratio of 38.35. Grupo Aeromexico has a fifty-two week low of $12.26 and a fifty-two week high of $23.05.

Grupo Aeromexico (NYSE:AERO - Get Free Report) last announced its quarterly earnings data on Tuesday, July 14th. The company reported ($0.40) EPS for the quarter, missing analysts' consensus estimates of ($0.37) by ($0.03). The firm had revenue of $1.48 billion during the quarter. Grupo Aeromexico had a net margin of 3.78% and a negative return on equity of 25.10%. Equities analysts predict that Grupo Aeromexico will post 0.50 earnings per share for the current year.

Insider Activity at Grupo Aeromexico

In other news, insider Aaron Murray sold 355,600 shares of the business's stock in a transaction dated 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 sale, the insider directly owned 1,262,530 shares of the company's stock, valued at $1,994,797.40. The trade was a 21.98% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link.

Hedge Funds Weigh In On Grupo Aeromexico

Hedge funds have recently added to or reduced their stakes in the stock. Oaktree Capital Management LP lifted its holdings in shares of Grupo Aeromexico by 5.1% in the first quarter. Oaktree Capital Management LP now owns 3,968,686 shares of the company's stock valued at $55,601,000 after purchasing an additional 191,700 shares in the last quarter. Bank of America Corp DE boosted its position in shares of Grupo Aeromexico by 25.8% during the first quarter. Bank of America Corp DE now owns 1,439,555 shares of the company's stock valued at $20,168,000 after buying an additional 295,646 shares during the last quarter. 140 Summer Partners LP bought a new stake in Grupo Aeromexico during the fourth quarter worth $28,513,000. Compass Rose Asset Management LP grew its holdings in Grupo Aeromexico by 49.2% during the first quarter. Compass Rose Asset Management LP now owns 545,000 shares of the company's stock worth $7,635,000 after buying an additional 179,731 shares in the last quarter. Finally, Rubric Capital Management LP bought a new stake in Grupo Aeromexico during the first quarter worth $6,544,000.

Grupo Aeromexico Company Profile

Grupo Aeroméxico, SAB. de C.V. is a Mexico-based airline holding company and the parent of Aeroméxico, one of Mexico's principal air carriers. The company provides scheduled passenger transportation, air cargo services and related aviation offerings, serving destinations within Mexico and international markets.

Aeroméxico operates a network connecting Mexico with the United States, Canada, Central and South America, Europe and other selected international destinations. Its services are supported by regional operations, including Aeroméxico Connect, and the company is a member of the SkyTeam airline alliance, providing customers with access to a broader global network through partner carriers.

Founded in 1934, Aeroméxico is headquartered in Mexico City and operates its principal hub at Mexico City International Airport, with additional focus cities and operating bases across Mexico.

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