Grupo Aeromexico (NYSE:AERO) Downgraded by Wall Street Zen to "Hold"

Key Points

• Wall Street Zen downgraded Grupo Aeromexico from “Buy” to “Hold.” Despite mixed analyst opinions, the stock retains a “Moderate Buy” consensus rating with an average price target of $28.06.
• Grupo Aeromexico shares opened at $15.20, below their 50-day and 200-day moving averages, with a 12-month range of $12.26 to $23.05 and a market capitalization of approximately $2.07 billion.
• The company reported a quarterly loss of $0.40 per share, missing expectations by $0.03, while generating $1.48 billion in revenue. An insider also sold 350,000 shares in May.

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 research report issued to clients and investors on Tuesday.

A number of other equities research analysts also recently weighed in on AERO. Zacks Research upgraded Grupo Aeromexico from a "strong sell" rating to a "hold" rating in a report on Monday, May 25th. The Goldman Sachs Group upgraded shares of Grupo Aeromexico to a "strong-buy" rating in a research note on Monday, April 13th. Jefferies Financial Group initiated coverage on shares of Grupo Aeromexico in a research report on Thursday, June 18th. They issued a "hold" rating and a $20.00 price target on the stock. JPMorgan Chase & Co. lowered their price objective on shares of Grupo Aeromexico from $28.00 to $26.50 and set an "overweight" rating for the company in a research report on Friday, June 12th. Finally, Weiss Ratings lowered Grupo Aeromexico from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, July 17th. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $28.06.

Grupo Aeromexico Price Performance

Grupo Aeromexico stock opened at $15.20 on Tuesday. The firm's fifty day moving average price is $16.61 and its 200 day moving average price is $16.91. The company has a market capitalization of $2.07 billion and a price-to-earnings ratio of 36.19. Grupo Aeromexico has a 12-month low of $12.26 and a 12-month high of $23.05.

Grupo Aeromexico (NYSE:AERO - Get Free Report) last announced its earnings results on Tuesday, July 14th. The company reported ($0.40) earnings per share for the quarter, missing the consensus estimate of ($0.37) by ($0.03). The business had revenue of $1.48 billion for the quarter. Grupo Aeromexico had a net margin of 3.78% and a negative return on equity of 25.10%. Analysts forecast that Grupo Aeromexico will post 1.05 earnings per share for the current fiscal year.

Insider Activity at Grupo Aeromexico

In other news, insider Aaron James Murray sold 350,000 shares of Grupo Aeromexico stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $1.56, for a total transaction of $546,000.00. Following the sale, the insider owned 1,618,130 shares of the company's stock, valued at approximately $2,524,282.80. The trade was a 17.78% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website.

Institutional Trading of Grupo Aeromexico

Several hedge funds have recently added to or reduced their stakes in AERO. Strategic Value Partners LLC bought a new position in shares of Grupo Aeromexico in the fourth quarter worth $208,318,000. Seven Grand Managers LLC bought a new stake in shares of Grupo Aeromexico during the fourth quarter valued at about $3,294,000. Zweig DiMenna Associates LLC bought a new stake in shares of Grupo Aeromexico during the fourth quarter valued at about $1,976,000. Norges Bank acquired a new stake in Grupo Aeromexico in the fourth quarter worth about $8,784,000. Finally, Goldman Sachs Group Inc. acquired a new stake in Grupo Aeromexico in the fourth quarter worth about $3,968,000.

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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