Wall Street Zen Upgrades Grupo Aeromexico (NYSE:AERO) to "Buy"

Key Points

• Wall Street Zen upgraded Grupo Aeromexico from hold to buy, adding to a mixed analyst backdrop that still leaves the stock at a Moderate Buy consensus rating with a $28.06 average price target.
• The stock was trading around $15.51, below both its 50-day and 200-day moving averages, while the company carried a market cap of about $2.12 billion.
• Grupo Aeromexico recently reported quarterly earnings of -$0.40 per share, missing estimates, even as it generated $1.48 billion in revenue; analysts expect $1.05 EPS for the full year.

Grupo Aeromexico (NYSE:AERO - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a report released on Monday.

AERO has been the topic of several other research reports. Weiss Ratings lowered shares of Grupo Aeromexico from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday. JPMorgan Chase & Co. cut their price objective on Grupo Aeromexico from $28.00 to $26.50 and set an "overweight" rating on the stock in a research report on Friday, June 12th. 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 research report on Thursday, June 18th. They issued a "hold" rating and a $20.00 target price for the company. Finally, Barclays dropped their target price on Grupo Aeromexico from $32.00 to $25.00 and set an "overweight" rating on the stock in a report on Tuesday, March 24th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Grupo Aeromexico has an average rating of "Moderate Buy" and a consensus price target of $28.06.

Grupo Aeromexico Trading Up 0.5%

Shares of NYSE AERO opened at $15.51 on Monday. The company's 50-day moving average price is $16.61 and its 200 day moving average price is $17.19. Grupo Aeromexico has a 52 week low of $12.26 and a 52 week high of $23.05. The stock has a market cap of $2.12 billion and a price-to-earnings ratio of 18.91.

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). Grupo Aeromexico had a net margin of 3.78% and a negative return on equity of 25.10%. The firm had revenue of $1.48 billion during the quarter. As a group, research analysts expect that Grupo Aeromexico will post 1.05 earnings per share for the current year.

Insider Activity at Grupo Aeromexico

In related news, insider Aaron James Murray sold 600,000 shares of the business's stock in a transaction dated 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 sale, the insider owned 1,968,130 shares of the company's stock, valued at $2,971,876.30. This represents a 23.36% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 12.82% of the company's stock.

Institutional Investors Weigh In On Grupo Aeromexico

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Public Employees Retirement System of Ohio purchased a new stake in shares of Grupo Aeromexico during the first quarter valued at $56,000. R Squared Ltd purchased a new position in Grupo Aeromexico in the 1st quarter worth about $163,000. Federated Hermes Inc. purchased a new position in Grupo Aeromexico in the 4th quarter worth about $220,000. Sandia Investment Management LP acquired a new stake in Grupo Aeromexico during the 4th quarter worth about $220,000. Finally, Quarry LP acquired a new stake in Grupo Aeromexico during the 4th quarter worth about $232,000.

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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