American Airlines Group (NASDAQ:AAL) Stock Gets Price Target Cut from Morgan Stanley

American Airlines Group (NASDAQ:AAL) had its price target reduced by Morgan Stanley from $24.00 to $22.00 in a research note released on Friday, Marketbeat Ratings reports. They currently have an overweight rating on the airline’s stock.

Several other research firms also recently issued reports on AAL. Cantor Fitzgerald set a $24.00 price objective on shares of American Airlines Group in a research note on Thursday, July 2nd. The Goldman Sachs Group cut their target price on American Airlines Group from $13.00 to $11.00 and set a “sell” rating on the stock in a research report on Friday, October 2nd. Weiss Ratings raised American Airlines Group from a “sell (d)” rating to a “sell (d+)” rating in a report on Thursday, October 8th. UBS Group dropped their price target on American Airlines Group from $17.00 to $16.00 and set a “buy” rating on the stock in a research note on Friday, October 16th. Finally, Bank of America lifted their price target on American Airlines Group from $16.00 to $19.00 and gave the stock a “neutral” rating in a research report on Wednesday, July 1st. Eight research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, American Airlines Group has a consensus rating of “Hold” and a consensus target price of $17.29.

American Airlines Group Stock Performance

AAL opened at $12.11 on Friday. American Airlines Group has a one year low of $10.09 and a one year high of $18.79. The company has a market cap of $8.02 billion, a P/E ratio of -16.59 and a beta of 1.37. The business’s 50-day simple moving average is $13.07 and its 200-day simple moving average is $13.94.

American Airlines Group (NASDAQ:AAL) last posted its earnings results on Thursday, October 22nd. The airline reported ($0.28) earnings per share for the quarter, topping the consensus estimate of ($0.36) by $0.08. The firm had revenue of $16.34 billion during the quarter, compared to analysts’ expectations of $16.21 billion. American Airlines Group had a negative return on equity of 9.11% and a negative net margin of 0.79%. The firm’s revenue was up 19.3% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($0.17) earnings per share. As a group, analysts predict that American Airlines Group will post -1.22 earnings per share for the current fiscal year.

Insider Buying and Selling at American Airlines Group

In other news, SVP Angela Owens sold 40,077 shares of the business’s stock in a transaction that occurred on Friday, July 31st. The stock was sold at an average price of $15.26, for a total transaction of $611,575.02. Following the sale, the senior vice president owned 178,799 shares of the company’s stock, valued at $2,728,472.74. The trade was a 18.31% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.70% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of AAL. Primecap Management Co. CA purchased a new position in American Airlines Group in the 2nd quarter valued at about $1,278,144,000. BlackRock Inc. acquired a new stake in shares of American Airlines Group during the 2nd quarter worth about $1,144,739,000. Renaissance Technologies LLC boosted its stake in shares of American Airlines Group by 569.4% during the 1st quarter. Renaissance Technologies LLC now owns 9,687,232 shares of the airline’s stock worth $104,041,000 after purchasing an additional 8,240,100 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of American Airlines Group by 2.2% during the first quarter. Dimensional Fund Advisors LP now owns 7,086,888 shares of the airline’s stock worth $76,098,000 after buying an additional 152,266 shares in the last quarter. Finally, U S Global Investors Inc. grew its holdings in shares of American Airlines Group by 13.1% during the third quarter. U S Global Investors Inc. now owns 6,787,455 shares of the airline’s stock worth $90,748,000 after buying an additional 786,283 shares in the last quarter. 52.44% of the stock is currently owned by institutional investors and hedge funds.

Key American Airlines Group News

Here are the key news stories impacting American Airlines Group this week:

• Positive Sentiment: Third-quarter revenue rose 19.3% year over year to a record $16.34 billion, exceeding analyst expectations. Premium seating and international traffic outperformed domestic demand, supporting the company’s strategy of targeting higher-yielding passengers. AAL Q3 deep dive: premium investments and cost focus offset by fuel headwinds
• Positive Sentiment: Fourth-quarter revenue guidance of $16.7 billion to $17.1 billion was above the $16.5 billion consensus estimate, indicating continued demand and expected revenue growth of roughly 20% to 23%. American Airlines Forecasts Another Quarterly Loss on Surging Fuel Costs
• Positive Sentiment: Morgan Stanley maintained an “overweight” rating, although it reduced its price target from $24 to $22, implying substantial potential upside based on the recent share price. Morgan Stanley stock recommendations
• Neutral Sentiment: American reported an adjusted third-quarter loss of $0.28 per share, better than the expected $0.36 loss, while its 83.4% load factor showed solid aircraft utilization. However, revenue growth has not yet translated into sustainable earnings. American Airlines Group quarterly earnings report
• Negative Sentiment: Fuel expense increased $1.9 billion, or 67.5%, to approximately $3.85 per gallon. Management said historically high fuel prices are overwhelming fare gains, and fares may remain elevated even if oil prices decline. American Airlines forecasts 2026 loss as fuel costs outpace fare gains
• Negative Sentiment: American now expects a larger full-year 2026 loss, with EPS guidance of negative $1.60 to negative $1.00 versus consensus of negative $0.97. Fourth-quarter EPS guidance of negative $1.10 to negative $0.50 also trails the expected negative $0.41, overshadowing the revenue beat. American Airlines expects deeper 2026 loss on pricier fuel despite record revenue
• Negative Sentiment: Rising oil prices are adding further pressure to airline stocks and reversing the initial relief following American’s earnings release. American Airlines Sinks as Oil Climb Reverses Post-Earnings Rebound

About American Airlines Group

American Airlines Group Inc is a holding company whose principal subsidiary, American Airlines, provides scheduled passenger air transportation and air cargo services. The company operates a large mainline network under the American Airlines brand and offers regional service through carriers operating as American Eagle. Its services include domestic and international flights, connecting passengers through a network of hubs and focus cities.

American Airlines serves destinations throughout the United States, as well as markets in Canada, Mexico, the Caribbean, Central and South America, Europe, Asia and other international regions.