Grupo Aeromexico's Lock-Up Period Set To End on May 5th (NYSE:AERO)

Key Points

• Lock-up period ends May 5: Shares held by major shareholders and insiders from the Nov. 6 IPO (11,727,325 shares priced at $19) will become eligible to trade, potentially increasing supply in the market.
• Analysts show a consensus of "Moderate Buy" with an average target of $29.43 — the breakdown is 1 Strong Buy, 7 Buy and 2 Hold, and notable moves include Goldman Sachs upgrading to "strong-buy" while Barclays and JPMorgan trimmed price targets.
• Recent results and stock metrics: AERO opened at $14.82 with a $2.02B market cap and 50-day average $15.84; the company reported an earnings beat (EPS reported at $999 vs. $0.07 estimate) and revenue of $1.34B (vs. $1.31B est.), while analysts expect ~1.08 EPS for the year.

Grupo Aeromexico's (NYSE:AERO - Get Free Report) lock-up period is set to end on Tuesday, May 5th. Grupo Aeromexico had issued 11,727,325 shares in its initial public offering on November 6th. The total size of the offering was $222,819,175 based on an initial share price of $19.00. Shares of the company owned by major shareholders and company insiders will be eligible for trade following the expiration of the lock-up period.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on AERO. Weiss Ratings began coverage on Grupo Aeromexico in a report on Tuesday, February 3rd. They issued a "hold (c)" rating for the company. The Goldman Sachs Group upgraded Grupo Aeromexico to a "strong-buy" rating in a research report on Monday, April 13th. Wall Street Zen upgraded Grupo Aeromexico from a "hold" rating to a "buy" rating in a research report on Saturday. Barclays lowered their price objective on Grupo Aeromexico from $32.00 to $25.00 and set an "overweight" rating for the company in a research report on Tuesday, March 24th. Finally, JPMorgan Chase & Co. lowered their price objective on Grupo Aeromexico from $28.50 to $28.00 and set an "overweight" rating for the company in a research report on Thursday, March 12th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $29.43.

Grupo Aeromexico Stock Performance

Shares of AERO stock opened at $14.82 on Tuesday. The stock has a 50-day moving average price of $15.84. The firm has a market capitalization of $2.02 billion and a price-to-earnings ratio of 19.75. 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 quarterly earnings data on Wednesday, April 22nd. The company reported $999.00 EPS for the quarter, topping analysts' consensus estimates of $0.07 by $998.93. The firm had revenue of $1.34 billion during the quarter, compared to analyst estimates of $1.31 billion. Grupo Aeromexico had a negative return on equity of 41.04% and a net margin of 6.17%. On average, analysts expect that Grupo Aeromexico will post 1.08 EPS for the current year.

Hedge Funds Weigh In On Grupo Aeromexico

Several institutional investors have recently modified their holdings of the stock. Mariner Investment Group LLC acquired a new position in shares of Grupo Aeromexico during the 4th quarter worth about $3,717,000. XTX Topco Ltd acquired a new position in shares of Grupo Aeromexico during the 4th quarter worth about $301,000. Zimmer Partners LP acquired a new position in shares of Grupo Aeromexico during the 4th quarter worth about $23,286,000. VR Advisory Services Ltd acquired a new position in shares of Grupo Aeromexico during the 4th quarter worth about $259,000. Finally, Readystate Asset Management LP acquired a new position in shares of Grupo Aeromexico during the 4th quarter worth about $3,009,000.

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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