Grupo Aeromexico (NYSE:AERO) Shares Down 8.2% on Disappointing Earnings

Key Points

• Grupo Aeromexico shares fell 8.2% to $14.585 after the airline reported quarterly EPS of $0.28, missing analysts’ $0.29 consensus estimate. Revenue totaled $1.62 billion.
• Analyst sentiment remains mixed: the stock has an overall “Moderate Buy” rating and a $28.06 consensus price target, despite recent downgrades to “Hold” and a “Sell” rating from Weiss Ratings.
• An insider sold 355,600 shares for approximately $561,848, reducing their position by 21.98%; meanwhile, several hedge funds—including Rubric Capital Management—established new stakes during the first quarter.

Grupo Aeromexico (NYSE:AERO - Get Free Report) fell 8.2% during trading on Tuesday following a dissappointing earnings announcement. The stock traded as low as $14.25 and last traded at $14.5850. Approximately 61,758 shares changed hands during trading, a decline of 83% from the average daily volume of 366,689 shares. The stock had previously closed at $15.89.

The company reported $0.28 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.29 by ($0.01). The company had revenue of $1.62 billion for the quarter. Grupo Aeromexico had a net margin of 3.78% and a negative return on equity of 25.10%.

Wall Street Analyst Weigh In

Several research firms recently weighed in on AERO. Weiss Ratings restated a "sell (d+)" rating on shares of Grupo Aeromexico in a report on Thursday. Zacks Research downgraded Grupo Aeromexico from a "strong-buy" rating to a "hold" rating in a research report on Thursday, August 27th. Finally, Wall Street Zen lowered shares of Grupo Aeromexico from a "buy" rating to a "hold" rating in a research note on Tuesday, July 28th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $28.06.

Insider Transactions at Grupo Aeromexico

In related news, insider Aaron Murray sold 355,600 shares of the business's 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 completion of the transaction, the insider owned 1,262,530 shares in the company, valued at $1,994,797.40. The trade was a 21.98% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink.

Hedge Funds Weigh In On Grupo Aeromexico

Several hedge funds have recently bought and sold shares of AERO. Public Employees Retirement System of Ohio bought a new stake in shares of Grupo Aeromexico during the first quarter worth $56,000. R Squared Ltd bought a new position in shares of Grupo Aeromexico in the first quarter worth about $163,000. Walleye Capital LLC bought a new position in shares of Grupo Aeromexico in the first quarter worth about $2,969,000. The Manufacturers Life Insurance Company bought a new position in shares of Grupo Aeromexico in the first quarter worth about $3,502,000. Finally, Rubric Capital Management LP purchased a new position in Grupo Aeromexico in the 1st quarter worth about $6,544,000.

Grupo Aeromexico Trading Down 8.0%

The company has a market cap of $1.99 billion and a PE ratio of 34.69. The company's 50 day moving average is $15.43 and its 200 day moving average is $15.84.

Grupo Aeromexico Company Profile

Grupo Aeroméxico, SAB. de C.V. is a Mexico-based airline holding company and the parent of Aeroméxico, one of Mexico's principal air carriers. The company provides scheduled passenger transportation, air cargo services and related aviation offerings, serving destinations within Mexico and international markets.

Aeroméxico operates a network connecting Mexico with the United States, Canada, Central and South America, Europe and other selected international destinations. Its services are supported by regional operations, including Aeroméxico Connect, and the company is a member of the SkyTeam airline alliance, providing customers with access to a broader global network through partner carriers.

Founded in 1934, Aeroméxico is headquartered in Mexico City and operates its principal hub at Mexico City International Airport, with additional focus cities and operating bases across Mexico.

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