The Case for and Against American Airlines Group Inc. (AAL)

American Airlines Group Inc. (AAL) is an interesting player in the Services space, with a focus on Major Airlines. The stock has been active on the tape, currently trading at $52.03, down from yesterday’s close by -0.82%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

American Airlines Group Inc. (AAL) currently trades with a market capitalization of $25.10 Billion. That value represents a market adjusting for revenues that have been growing by 2.68 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of -$1.15 Billion over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $0.69 on a per share basis this quarter. Perhaps, that suggests something about why 2.22% of the outstanding share supply is held by institutional investors.



Technical Analysis

Sometimes, we can understand most about a stock by simply looking at how it has been trading. Looking at the stock’s movement on the chart, American Airlines Group Inc. recorded a 52-week high of $54.48. It is now trading 2.45% off that level. The stock is trading $49.40 its 50-day moving average by -2.63%. The stock carved out a 52-week low down at $39.21.

In recent action, American Airlines Group Inc. (AAL) has made a move of +3.05% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 19.03, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 4.84% with $473.97 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of AAL.

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