Primecap Management Co. CA Acquires 219,390 Shares of American Airlines Group Inc. (NASDAQ:AAL)

Key Points

• Primecap Management Co. CA has increased its stake in American Airlines Group by acquiring an additional 219,390 shares, bringing its total ownership to 60,445,097 shares, which is approximately 9.17% of the company.
• American Airlines reported earnings of $0.95 per share for the last quarter, exceeding analysts' expectations of $0.79, with a revenue of $14.39 billion, slightly above the forecast.
• Analysts have varied opinions on American Airlines stock; the average price target is $16.76, with ratings ranging from "sell" to "strong buy" based on current market conditions.

Primecap Management Co. CA boosted its holdings in shares of American Airlines Group Inc. (NASDAQ:AAL - Free Report) by 0.4% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 60,445,097 shares of the airline's stock after purchasing an additional 219,390 shares during the period. Primecap Management Co. CA owned approximately 9.17% of American Airlines Group worth $637,696,000 at the end of the most recent quarter.

Other hedge funds have also recently added to or reduced their stakes in the company. O Shaughnessy Asset Management LLC lifted its position in shares of American Airlines Group by 11.8% during the 4th quarter. O Shaughnessy Asset Management LLC now owns 17,600 shares of the airline's stock valued at $307,000 after acquiring an additional 1,860 shares during the last quarter. Alliancebernstein L.P. boosted its position in shares of American Airlines Group by 1.7% in the 4th quarter. Alliancebernstein L.P. now owns 990,997 shares of the airline's stock valued at $17,273,000 after purchasing an additional 16,509 shares during the period. Envestnet Asset Management Inc. increased its stake in American Airlines Group by 5.6% in the 4th quarter. Envestnet Asset Management Inc. now owns 38,133 shares of the airline's stock worth $665,000 after purchasing an additional 2,011 shares in the last quarter. Quadrant Capital Group LLC raised its holdings in American Airlines Group by 25.6% during the 4th quarter. Quadrant Capital Group LLC now owns 8,265 shares of the airline's stock worth $144,000 after buying an additional 1,683 shares during the period. Finally, Federated Hermes Inc. lifted its stake in American Airlines Group by 424.9% during the fourth quarter. Federated Hermes Inc. now owns 369,493 shares of the airline's stock valued at $6,440,000 after buying an additional 299,103 shares in the last quarter. Institutional investors and hedge funds own 52.44% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the stock. Bank of America lifted their target price on shares of American Airlines Group from $10.00 to $12.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 1st. Barclays lifted their price objective on shares of American Airlines Group from $11.00 to $12.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 10th. Sanford C. Bernstein increased their target price on American Airlines Group from $12.00 to $15.00 and gave the company an "outperform" rating in a report on Tuesday, May 13th. UBS Group raised their target price on American Airlines Group from $9.00 to $12.00 and gave the stock a "neutral" rating in a research report on Monday, July 7th. Finally, Raymond James Financial lowered their price target on American Airlines Group from $15.00 to $14.00 and set an "outperform" rating on the stock in a report on Friday, April 25th. One equities research analyst has rated the stock with a sell rating, eight have issued a hold rating, nine have given a buy rating and two have given a strong buy rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $16.76.

American Airlines Group Stock Performance

Shares of AAL traded up $0.02 during trading hours on Friday, hitting $11.75. 3,833,610 shares of the company were exchanged, compared to its average volume of 56,362,418. The company has a market cap of $7.75 billion, a PE ratio of 14.67, a PEG ratio of 2.67 and a beta of 1.43. The firm's 50 day moving average is $11.54 and its 200-day moving average is $12.21. American Airlines Group Inc. has a 52 week low of $8.50 and a 52 week high of $19.10.

American Airlines Group (NASDAQ:AAL - Get Free Report) last posted its earnings results on Thursday, July 24th. The airline reported $0.95 earnings per share for the quarter, topping the consensus estimate of $0.79 by $0.16. American Airlines Group had a negative return on equity of 24.55% and a net margin of 1.05%. The firm had revenue of $14.39 billion during the quarter, compared to analyst estimates of $14.27 billion. During the same period in the previous year, the company earned $1.09 EPS. The company's revenue for the quarter was up .4% on a year-over-year basis. As a group, equities analysts forecast that American Airlines Group Inc. will post 2.42 earnings per share for the current fiscal year.

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.