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Redburn Partners Upgrades American Airlines Group

Fintel Staff

Published: February 9, 2023 3:03 am

Last Updated: February 9, 2023 11:05 am

An February 8, 2023, Redburn Partners upgraded their outlook for American Airlines Group from Neutral to Buy.

Analyst Price Forecast Suggests 0.40% Downside

As of February 9, 2023, the average one-year price target for American Airlines Group is $16.90. The forecasts range from a low of $8.08 to a high of $27.30. The average price target represents a decrease of 0.40% from its latest reported closing price of $16.97.

The projected annual revenue for American Airlines Group is $51,177MM, an increase of 4.50%. The projected annual EPS is $1.52, an increase of 678.51%.

American Airlines Group Declares $0.10 Dividend

On January 22, 2020 the company declared a regular quarterly dividend of $0.10 per share ($0.40 annualized). Shareholders of record as of February 4, 2020 received the payment on February 19, 2020. Previously, the company paid $0.10 per share.

At the current share price of $16.97 / share, the stock’s dividend yield is 2.36%. Looking back five years and taking a sample every week, the average dividend yield has been 1.36%, the lowest has been 0.71%, and the highest has been 4.21%. The standard deviation of yields is 0.66 (n=107).

The current dividend yield is 1.51 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.00. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is -1.00%.

What are large shareholders doing?

Primecap Management holds 38,955K shares representing 5.99% ownership of the company. In it’s prior filing, the firm reported owning 39,493K shares, representing a decrease of 1.38%. The firm increased its portfolio allocation in AAL by 1.39% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 19,454K shares representing 2.99% ownership of the company. In it’s prior filing, the firm reported owning 19,157K shares, representing an increase of 1.52%. The firm increased its portfolio allocation in AAL by 0.51% over the last quarter.

VPMCX – Vanguard PRIMECAP Fund Investor Shares holds 19,400K shares representing 2.98% ownership of the company. In it’s prior filing, the firm reported owning 19,835K shares, representing a decrease of 2.24%. The firm decreased its portfolio allocation in AAL by 0.29% over the last quarter.

U S Global Investors holds 16,743K shares representing 2.57% ownership of the company. In it’s prior filing, the firm reported owning 16,590K shares, representing an increase of 0.91%. The firm increased its portfolio allocation in AAL by 0.82% over the last quarter.

JETS – U.S. Global Jets ETF holds 16,590K shares representing 2.55% ownership of the company. In it’s prior filing, the firm reported owning 17,865K shares, representing a decrease of 7.68%. The firm increased its portfolio allocation in AAL by 14.20% over the last quarter.

What is the Fund Sentiment?

There are 995 funds or institutions reporting positions in American Airlines Group. This is a decrease of 11 owner(s) or 1.09% in the last quarter. Average portfolio weight of all funds dedicated to AAL is 0.13%, an increase of 11.17%. Total shares owned by institutions increased in the last three months by 2.64% to 404,854K shares. The put/call ratio of AAL is 3.01, indicating a bearish outlook.

American Airlines Group Background Information
(This description is provided by the company.)

American Airlines Group Inc. is the parent company of American Airlines. Together with regional partner American Eagle, American Airlines offers an average of nearly 6,700 flights daily to 350 destinations in 50 countries. American Airlines is a founding member of the oneworld® alliance, whose members and members-elect offer nearly 14,250 flights daily to 1,000 destinations in 150 countries.

This article originally appeared on Fintel