Grupo Aeromexico (NYSE:AERO) Announces Earnings Results

Key Points

• Grupo Aeromexico reported quarterly EPS of ($0.40), missing analysts’ consensus estimate of ($0.37) by $0.03.
• The stock fell to $15.37 during Monday trading, below its recent averages, while the company’s market cap was about $2.10 billion.
• Analysts currently have a Moderate Buy consensus on AERO, with a consensus price target of $28.06, despite some recent downgrades and lower price targets.

Grupo Aeromexico (NYSE:AERO - Get Free Report) announced its quarterly earnings results on Monday. The company reported ($0.40) earnings per share for the quarter, missing analysts' consensus estimates of ($0.37) by ($0.03), Zacks reports. Grupo Aeromexico had a net margin of 6.17% and a negative return on equity of 41.04%.

Grupo Aeromexico Price Performance

Grupo Aeromexico stock traded down $1.36 during midday trading on Monday, hitting $15.37. 270,642 shares of the stock were exchanged, compared to its average volume of 385,134. Grupo Aeromexico has a 1 year low of $12.26 and a 1 year high of $23.05. The firm has a market cap of $2.10 billion and a P/E ratio of 18.75. The company has a 50 day moving average price of $16.63 and a two-hundred day moving average price of $17.42.

Analyst Upgrades and Downgrades

AERO has been the subject of a number of research analyst reports. Wall Street Zen downgraded Grupo Aeromexico from a "buy" rating to a "hold" rating in a report on Sunday. Jefferies Financial Group began coverage on Grupo Aeromexico in a research note on Thursday, June 18th. They set a "hold" rating and a $20.00 price target for the company. JPMorgan Chase & Co. cut their price objective on Grupo Aeromexico from $28.00 to $26.50 and set an "overweight" rating on the stock in a report on Friday, June 12th. The Goldman Sachs Group raised Grupo Aeromexico to a "strong-buy" rating in a research note on Monday, April 13th. Finally, Zacks Research upgraded Grupo Aeromexico from a "strong sell" rating to a "hold" rating in a report on Monday, May 25th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $28.06.

Insiders Place Their Bets

In other Grupo Aeromexico news, insider Aaron James Murray sold 600,000 shares of the company's stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $1.51, for a total value of $906,000.00. Following the completion of the transaction, the insider directly owned 1,968,130 shares of the company's stock, valued at $2,971,876.30. This represents a 23.36% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 12.82% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Par Capital Management Inc. acquired a new position in shares of Grupo Aeromexico in the 4th quarter valued at approximately $304,155,000. Silver Point Capital L.P. acquired a new stake in shares of Grupo Aeromexico during the fourth quarter worth approximately $289,274,000. Nut Tree Capital Management LP acquired a new stake in shares of Grupo Aeromexico during the fourth quarter worth approximately $130,652,000. Oaktree Capital Management LP bought a new stake in shares of Grupo Aeromexico in the fourth quarter worth $82,943,000. Finally, Corre Partners Management LLC bought a new stake in shares of Grupo Aeromexico in the fourth quarter worth $48,638,000.

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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