Grupo Aeromexico (NYSE:AERO) Cut to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded Grupo Aeromexico from buy to hold, even as other firms have recently issued mixed but generally constructive ratings on the stock.
• The stock was up 0.1% to $16.64 in Friday trading, with a market cap of about $2.27 billion; it has traded between $12.26 and $23.05 over the past 52 weeks.
• Grupo Aeromexico reported $0.01 EPS on $1.34 billion in quarterly revenue, while analysts expect the company to earn 1.14 EPS for the current fiscal year.

Grupo Aeromexico (NYSE:AERO - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Sunday.

Several other analysts also recently commented on AERO. Weiss Ratings upgraded shares of Grupo Aeromexico from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Wednesday, July 1st. The Goldman Sachs Group raised shares of Grupo Aeromexico to a "strong-buy" rating in a report on Monday, April 13th. Zacks Research upgraded Grupo Aeromexico from a "strong sell" rating to a "hold" rating in a research note on Monday, May 25th. Jefferies Financial Group began coverage on Grupo Aeromexico in a report on Thursday, June 18th. They set a "hold" rating and a $20.00 price target on the stock. Finally, Barclays lowered their price objective on Grupo Aeromexico from $32.00 to $25.00 and set an "overweight" rating on the stock in a research report on Tuesday, March 24th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $28.06.

Grupo Aeromexico Trading Up 0.1%

Grupo Aeromexico stock traded up $0.02 during midday trading on Friday, hitting $16.64. The stock had a trading volume of 97,121 shares, compared to its average volume of 278,275. Grupo Aeromexico has a 52-week low of $12.26 and a 52-week high of $23.05. The company has a market capitalization of $2.27 billion and a PE ratio of 20.30. The firm's fifty day moving average is $16.63 and its two-hundred day moving average is $17.44.

Grupo Aeromexico (NYSE:AERO - Get Free Report) last issued its quarterly earnings results on Tuesday, March 31st. The company reported $0.01 earnings per share for the quarter. The business had revenue of $1.34 billion for the quarter. Grupo Aeromexico had a net margin of 6.17% and a negative return on equity of 41.04%. As a group, equities research analysts predict that Grupo Aeromexico will post 1.14 earnings per share for the current fiscal year.

Insider Activity at Grupo Aeromexico

In related news, insider Aaron James Murray sold 600,000 shares of the company's stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $1.51, for a total transaction of $906,000.00. Following the completion of the transaction, the insider owned 1,968,130 shares in the company, valued at approximately $2,971,876.30. This represents a 23.36% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 12.82% of the company's stock.

Institutional Trading of Grupo Aeromexico

A number of institutional investors and hedge funds have recently bought and sold shares of AERO. Par Capital Management Inc. purchased a new stake in Grupo Aeromexico in the 4th quarter worth $304,155,000. Silver Point Capital L.P. purchased a new position in shares of Grupo Aeromexico during the fourth quarter valued at about $289,274,000. Strategic Value Partners LLC purchased a new position in shares of Grupo Aeromexico during the fourth quarter valued at about $208,318,000. Nut Tree Capital Management LP bought a new stake in shares of Grupo Aeromexico in the fourth quarter worth about $130,652,000. Finally, Baupost Group LLC MA purchased a new stake in shares of Grupo Aeromexico in the fourth quarter worth about $106,620,000.

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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