Grupo Aeromexico (NYSE:AERO) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analyst sentiment is moderately bullish: Eleven brokerages give Grupo Aeromexico a consensus “Moderate Buy” rating, with seven buys, two strong buys, one hold and one sell. The average 12-month price target is $28.06.
• Recent earnings fell short of expectations: The company reported quarterly EPS of negative $0.40 versus the consensus estimate of negative $0.37, despite generating $1.48 billion in revenue. Analysts expect full-year EPS of $1.05.
• Shares opened at $13.81, well below their 52-week high of $23.05, while insider Aaron James Murray sold 355,600 shares worth approximately $561,848, reducing his position by nearly 22%.

Shares of Grupo Aeromexico (NYSE:AERO - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the eleven ratings firms that are covering the company, Marketbeat reports. One investment analyst has rated the stock with a sell rating, one has assigned a hold rating, seven have assigned a buy rating and two have assigned a strong buy rating to the company. The average 1 year price target among brokerages that have updated their coverage on the stock in the last year is $28.0625.

Several equities analysts have weighed in on AERO shares. JPMorgan Chase & Co. dropped their target price on shares of Grupo Aeromexico from $28.00 to $26.50 and set an "overweight" rating for the company in a report on Friday, June 12th. Zacks Research raised shares of Grupo Aeromexico from a "hold" rating to a "strong-buy" rating in a report on Wednesday, August 12th. Wall Street Zen lowered shares of Grupo Aeromexico from a "buy" rating to a "hold" rating in a research report on Tuesday, July 28th. Weiss Ratings lowered shares of Grupo Aeromexico from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, July 17th. Finally, Jefferies Financial Group assumed coverage on shares of Grupo Aeromexico in a research note on Thursday, June 18th. They set a "hold" rating and a $20.00 price objective for the company.

Insider Buying and Selling

In other Grupo Aeromexico news, insider Aaron James Murray sold 355,600 shares of the stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $1.58, for a total transaction of $561,848.00. Following the sale, the insider owned 1,262,530 shares in the company, valued at approximately $1,994,797.40. This represents a 21.98% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link.

Institutional Trading of Grupo Aeromexico

A number of large investors have recently made changes to their positions in the stock. Strategic Value Partners LLC acquired a new position in Grupo Aeromexico in the 4th quarter valued at about $208,318,000. Seven Grand Managers LLC purchased a new stake in shares of Grupo Aeromexico during the fourth quarter worth about $3,294,000. Zweig DiMenna Associates LLC acquired a new position in shares of Grupo Aeromexico in the fourth quarter valued at approximately $1,976,000. Norges Bank acquired a new position in shares of Grupo Aeromexico in the fourth quarter valued at approximately $8,784,000. Finally, Goldman Sachs Group Inc. purchased a new position in shares of Grupo Aeromexico during the fourth quarter valued at approximately $3,968,000.

Grupo Aeromexico Stock Performance

Grupo Aeromexico stock opened at $13.81 on Monday. The firm has a market capitalization of $1.88 billion and a price-to-earnings ratio of 32.88. Grupo Aeromexico has a fifty-two week low of $12.26 and a fifty-two week high of $23.05. The stock's fifty day moving average is $16.23 and its two-hundred day moving average is $16.22.

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

About Grupo Aeromexico

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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