Seaport Res Ptn Lowers Q1 Earnings Estimate for American Airlines

American Airlines Group Inc. (NASDAQ:AAL – Free Report) has recently come under scrutiny as research analysts at Seaport Res Ptn have revised their earnings per share (EPS) estimates for the first quarter of 2025. In a report issued on January 21st, analyst D. Mckenzie highlighted a reduction in expectations for the airline's earnings, now anticipating a modest $0.10 per share instead of the previously predicted $0.15 per share. Despite this adjustment, Seaport Res Ptn continues to endorse the stock with a 'Strong-Buy' rating.

For the current full year, the consensus estimate for American Airlines Group's earnings stands at $1.73 per share. Additionally, Seaport Res Ptn has projected that the airline will achieve earnings of $1.45 per share in the second quarter of 2025.

A series of other analysts have also recently commented on American Airlines Group's stock. TD Cowen upgraded their rating from 'hold' to 'buy,' raising the target price from $17.00 to $25.00. Jefferies Financial Group similarly elevated their rating from 'hold' to 'buy' with a new price target of $20.00. However, StockNews.com has downgraded the company from 'buy' to 'hold.'

Scotiabank also joined the ranks of bullish analysts, upgrading the stock from 'neutral' to 'buy' with a target price set at $20.00. Simultaneously, Morgan Stanley increased their price objective from $18.00 to $22.00, giving American Airlines a rating of 'overweight.' Overall, eight equities research analysts maintain a hold rating, ten rate it as a buy, and three have assigned a strong buy status, as reported by MarketBeat.com. The average rating is currently a 'Moderate Buy' with a consensus target price of $19.05.

American Airlines Group Stock Overview

The stock price of American Airlines Group opened at $17.03 recently. The airline's moving averages indicate a fifty-day average of $16.60 and a two-hundred-day average of $13.16. The company has a market capitalization of $11.19 billion and a price-to-earnings ratio (P/E) of 51.61, showing a P/E growth (P/E/G) ratio of 0.97. The stock has fluctuated between a 52-week low of $9.07 and a high of $19.10.

On January 23rd, American Airlines released its earnings report for the previous quarter, revealing an EPS of $0.86. This figure notably surpassed analysts' expectations, which had averaged $0.39, by a significant margin of $0.47. However, the airline continues to contend with a negative return on equity of 18.62% and a slight net margin of 0.51%.

Institutional Investor Movements

Recently, various institutional investors have made adjustments to their holdings in American Airlines Group. For instance, Brooklyn Investment Group significantly increased its position by 133.1% during the fourth quarter, owning 1,592 shares valued at about $28,000 after buying an additional 909 shares. Similarly, Blue Trust Inc. grew its holdings by 56.2%, acquiring a total of 2,533 shares worth $29,000 after an additional purchase of 911 shares.

Sunbelt Securities Inc. and American Century Companies Inc. also raised their stakes by 8.2% and 2.8%, respectively, highlighting ongoing institutional interest in the airline's stock. As a whole, institutional investors and hedge funds own approximately 52.44% of American Airlines Group's shares.

Insider Transactions

In a related development, CEO Robert D. Isom, Jr. sold 102,441 shares of the company on December 27th, at an average price of $17.21, totaling over $1.76 million. Following this transaction, Isom retains ownership of about 2,967,984 shares, valued around $51 million. This sale reflects a 3.34% decrease in insider ownership, with current corporate insiders collectively holding about 0.49% of the stock.

Company Overview

American Airlines Group Inc. operates as a major airline company through its various subsidiaries, providing scheduled air transportation services for both passengers and cargo. The airlines utilize several hubs across the United States, including major cities such as Charlotte, Chicago, Dallas/Fort Worth, and Miami, among others. The company also has partner gateways in international locations including London, Doha, and Tokyo.

American, Airlines, Earnings