How to Invest in American Airlines?
American Airlines Investing Guide | AAL |
- Research American Airlines' stock before investing in American Airlines. It's a good idea to research the company and its stock by analyzing its financial statements, reading news articles, and studying its historical performance, including its growth strategy, change in net worth, competition, and potential risks.
- Choose a brokerage firm to buy shares of American Airlines. We recommend well-established brokerages such as Charles Schwab, Fidelity, TD Ameritrade, and Robinhood, but in many ways, it will depend on your individual needs, preferences, and investment goals.
- Open an account at one of the brokerages you have selected. You will be required to provide personal information, such as your name, address, and Social Security number.
- Fund your account. You will need to deposit funds into your brokerage account to purchase American Airlines stock. You can do this by transferring funds from your bank account or other investment accounts.
- Place your order. Once you have located American Airlines Group stock in your brokerage account, you can place your order to buy it. You will need to specify the number of shares you want to buy and the price you are willing to pay.
- Monitor your investment to track its performance and make informed decisions about buying, selling, or holding the stock.
It's important to note that investing in stocks such as American Airlines Group carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions regarding American Stock. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to invest safely in American Airlines Group.
Research American Airlines Stock
Researching American Airlines' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E).
About 57.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 0.22. American Airlines last dividend was issued on the 4th of February 2020. The entity had 0:1 split on the 9th of December 2013. American Airlines Group Inc., through its subsidiaries, operates as a network air carrier. American Airlines Group Inc. was founded in 1930 and is headquartered in Fort Worth, Texas. American Airlines operates under Airlines classification in the United States and is traded on NASDAQ Exchange. It employs 129700 people. For more info on American Airlines Group please contact Robert Isom at 682 278 9000 or go to https://www.aa.com. Other things to consider when investing in American
Another important aspect of American Airlines' research is to evaluate the company's potential for future growth. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding American Airlines' research are outlined below:
| American Airlines Group has 40.66 B in debt with debt to equity (D/E) ratio of 7.53, demonstrating that the company may be unable to create cash to meet all of its financial commitments. American Airlines has a current ratio of 0.77, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for American to invest in growth at high rates of return. | |
| American Airlines has a strong financial position based on the latest SEC filings | |
| About 57.0% of American Airlines shares are held by institutions such as insurance companies | |
| Latest headline from nytimes.com: American Airlines Accused of Discrimination by Interracial Couple |
American Airlines Quarterly Cash And Short Term Investments |
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Check American Airlines' earnings reports
American Airlines uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in American Airlines Group. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to American Airlines' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 25th of April 2024 Upcoming Quarterly Report | View | |
| 18th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 23rd of January 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
Use historical earnings surprises to time your American Airlines position
Earnings surprises can significantly impact American Airlines' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises American Airlines' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2010-07-21 | 2010-06-30 | -0.01 | -0.03 | -0.02 | 200 | ||
2024-04-25 | 2024-03-31 | -0.29 | -0.34 | -0.05 | 17 | ||
2012-10-17 | 2012-09-30 | 0.28 | 0.33 | 0.05 | 17 | ||
2004-07-21 | 2004-06-30 | -0.1 | -0.15 | -0.05 | 50 | ||
2014-04-24 | 2014-03-31 | 0.48 | 0.54 | 0.06 | 12 | ||
2011-10-19 | 2011-09-30 | -0.41 | -0.48 | -0.07 | 17 | ||
2010-10-20 | 2010-09-30 | 0.32 | 0.39 | 0.07 | 21 | ||
2013-04-18 | 2013-03-31 | -0.09 | 0.02 | 0.11 | 122 |
Know American Airlines' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as American Airlines is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading American Airlines Group backward and forwards among themselves. American Airlines' institutional investor refers to the entity that pools money to purchase American Airlines' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Bank Of New York Mellon Corp | 2024-09-30 | 4.8 M | Northern Trust Corp | 2024-09-30 | 4.5 M | Charles Schwab Investment Management Inc | 2024-09-30 | 4.4 M | Dimensional Fund Advisors, Inc. | 2024-09-30 | 4.3 M | Bnp Paribas Arbitrage, Sa | 2024-09-30 | 3.2 M | Amvescap Plc. | 2024-09-30 | 3 M | Susquehanna International Group, Llp | 2024-09-30 | 3 M | Squarepoint Ops Llc | 2024-09-30 | 2.9 M | Schonfeld Strategic Advisors Llc | 2024-09-30 | 2.8 M | Vanguard Group Inc | 2024-09-30 | 62 M | Primecap Management Company | 2024-09-30 | 57.3 M |
Follow American Airlines' market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 12.01 B.Market Cap |
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Evaluate American Airlines' profitablity
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.02 | 0.02 | |
| Return On Capital Employed | 0.07 | 0.07 | |
| Return On Assets | 0.02 | 0.02 | |
| Return On Equity | (0.18) | (0.19) |
Determining American Airlines' profitability involves analyzing its financial statements and using various financial metrics to assess its ability to generate profits. Also, when deciding whether to invest in American Airlines, it's important to look at multiple sources and consider different scenarios. For example, gross profit margin measures American Airlines' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of American Airlines' profitability and make more informed investment decisions.
Evaluate American Airlines' management efficiency
American Airlines has Return on Asset of 0.0275 % which means that on every $100 spent on assets, it made $0.0275 of profit. This is way below average. American Airlines' management efficiency ratios could be used to measure how well American Airlines manages its routine affairs as well as how well it operates its assets and liabilities. At this time, American Airlines' Return On Tangible Assets are quite stable compared to the past year. Return On Capital Employed is expected to rise to 0.07 this year, although the value of Return On Equity will most likely fall to (0.19). At this time, American Airlines' Return On Assets are quite stable compared to the past year.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | (9.15) | (8.70) | |
| Tangible Book Value Per Share | (19.96) | (18.96) | |
| Enterprise Value Over EBITDA | 8.49 | 8.91 | |
| Price Book Value Ratio | (1.99) | (2.08) | |
| Enterprise Value Multiple | 8.49 | 8.91 | |
| Price Fair Value | (1.99) | (2.08) | |
| Enterprise Value | 15.7 B | 16.4 B |
Evaluating the management effectiveness of American Airlines allows investors to assess its financial health and operational efficiency. Coupled with an analysis of its growth prospects and the current market dynamics, we evaluate the stock's true value and future potential. Key indicators such as revenue, earnings or debt levels are examined alongside external factors like economic trends and regulatory changes. The American Stock analysis seeks to determine whether the stock is undervalued, appropriately priced, or overvalued, thereby guiding your investment decisions.
Beta 1.399 |
Basic technical analysis of American Stock
As of the 18th of January 2025, American Airlines shows the mean deviation of 1.89, and Risk Adjusted Performance of 0.2042. American Airlines technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Please confirm American Airlines downside deviation, treynor ratio, expected short fall, as well as the relationship between the variance and potential upside to decide if American Airlines is priced correctly, providing market reflects its regular price of 18.27 per share. Given that American Airlines has jensen alpha of 0.6951, we suggest you to validate American Airlines Group's prevailing market performance to make sure the company can sustain itself at a future point.Check American Airlines' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific American Airlines insiders, such as employees or executives, is commonly permitted as long as it does not rely on American Airlines' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases American Airlines insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Raja Vasu over a year ago Sale by Raja Vasu of 5121 shares of American Airlines | ||
Raja Vasu over a year ago Sale by Raja Vasu of 5298 shares of American Airlines | ||
Purcell Philip J over a year ago Disposition of 1185 shares by Purcell Philip J of American Airlines subject to Rule 16b-3 | ||
Parker W Douglas over a year ago Payment of 33456 shares by Parker W Douglas of American Airlines subject to Rule 16b-3 |
Evaluate American Airlines' Outstanding Corporate Bonds
American Airlines issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. American Airlines uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most American bonds can be classified according to their maturity, which is the date when American Airlines Group has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| AAL 365 15 JUN 28 Corp BondUS023764AA14 | View | |
| US02377AAA60 Corp BondUS02377AAA60 | View | |
| AAL 36 15 OCT 29 Corp BondUS02377CAA27 | View | |
| US023770AA81 Corp BondUS023770AA81 | View | |
| AAL 4 15 JUL 25 Corp BondUS023772AB21 | View | |
| American Airlines 4 Corp BondUS02378AAA51 | View | |
| US02376UAA34 Corp BondUS02376UAA34 | View | |
| AAL 41 15 JAN 28 Corp BondUS02376WAA99 | View |
American Airlines' technical indicators
Using predictive indicators to make investment decisions involves analyzing American Airlines' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.2042 | |||
| Market Risk Adjusted Performance | (1.54) | |||
| Mean Deviation | 1.89 | |||
| Semi Deviation | 1.47 | |||
| Downside Deviation | 1.96 | |||
| Coefficient Of Variation | 424.33 | |||
| Standard Deviation | 2.95 | |||
| Variance | 8.73 | |||
| Information Ratio | 0.2256 | |||
| Jensen Alpha | 0.6951 | |||
| Total Risk Alpha | 0.6167 | |||
| Sortino Ratio | 0.3397 | |||
| Treynor Ratio | (1.55) | |||
| Maximum Drawdown | 21.04 | |||
| Value At Risk | (2.71) | |||
| Potential Upside | 4.43 | |||
| Downside Variance | 3.85 | |||
| Semi Variance | 2.15 | |||
| Expected Short fall | (2.39) | |||
| Skewness | 2.6 | |||
| Kurtosis | 12.92 |
| Risk Adjusted Performance | 0.2042 | |||
| Market Risk Adjusted Performance | (1.54) | |||
| Mean Deviation | 1.89 | |||
| Semi Deviation | 1.47 | |||
| Downside Deviation | 1.96 | |||
| Coefficient Of Variation | 424.33 | |||
| Standard Deviation | 2.95 | |||
| Variance | 8.73 | |||
| Information Ratio | 0.2256 | |||
| Jensen Alpha | 0.6951 | |||
| Total Risk Alpha | 0.6167 | |||
| Sortino Ratio | 0.3397 | |||
| Treynor Ratio | (1.55) | |||
| Maximum Drawdown | 21.04 | |||
| Value At Risk | (2.71) | |||
| Potential Upside | 4.43 | |||
| Downside Variance | 3.85 | |||
| Semi Variance | 2.15 | |||
| Expected Short fall | (2.39) | |||
| Skewness | 2.6 | |||
| Kurtosis | 12.92 |
Consider American Airlines' intraday indicators
American Airlines intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of American Airlines stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
American Airlines Corporate Filings
8K | 10th of January 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 30th of December 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
13A | 12th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
13A | 4th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
Choose a brokerage platform to buy American Airlines' shares
In investing, finding the right broker is a crucial step for anyone looking to embark on a journey into the stock market. It all begins with a thorough comparison of costs and fees, as low-cost or commission-free brokers can significantly impact an investor's returns. However, the cheapest option is not always the best choice. The adventure continues with exploring various trading platforms, seeking one that is user-friendly, reliable, and functional. The ideal platform will provide the necessary research, analysis, and investment monitoring tools. As the quest goes on, it's essential to consider the different account types brokers offer, such as individual, joint, and retirement accounts. In addition, for those interested in trading on margin, brokers offering margin accounts should also be considered. The journey leads to the discovery of brokers that provide a wide range of investment options, including stocks, bonds, ETFs, and mutual funds. This diversity allows investors to build well-rounded portfolios that suit their needs and goals. Customer service is another crucial factor in this decision-making process. The perfect broker would have a responsive, knowledgeable, and available customer support team ready to assist with various issues or investment decisions. Aspiring investors should seek brokers with quality research, market analysis, and educational resources. These tools are essential for making informed decisions and improving investment knowledge. It's also vital to ensure that the broker is regulated by an appropriate regulatory body and has robust security measures to protect personal and financial information. Additionally, account minimums and funding options should be taken into consideration. A broker with flexible account minimums and various funding options, such as wire transfers, ACH transfers, or check deposits, will cater to different investor needs. A seamless mobile and web experience is a must in today's fast-paced world. The ideal broker will allow investors to manage their investments easily on the go. Finally, it is essential to consider various brokers' reviews and conduct reputation analysis. By reading online assessments and seeking recommendations, valuable insights into each broker's reputation can be gathered. After a thorough investigation, you can find a broker that checks all the boxes and aligns with their preferences and requirements regarding taking a position in American Airlines Group.
Open brokerage account to buy American Stock
Once you've selected a broker, visit their website or a local branch to initiate the account-opening process. Most brokers offer online account opening, which is typically faster and more convenient. When you begin the process, you'll need to select the type of account you want to open. This may include individual, joint, or retirement accounts. Some brokers may also offer margin accounts, which allow you to trade on margin. Next, you'll need to complete the application form. Whether you're filling out an online or paper application, you'll need to provide personal information, such as your name, address, Social Security Number or other tax identification number, date of birth, and employment information. You may also be asked about your investment experience, financial situation, and goals. After completing the application form, review it carefully for accuracy and submit it to the broker. Some brokers may require you to provide additional documentation, such as a copy of your driver's license or passport, for identity verification. Once your application is submitted, the broker will review it and may run a background check or verify your credit history. You'll receive an email or notification with your new brokerage account details if your application is approved.
Fund your account to invest in American Stock
Once your account is open, you can fund it by linking your bank account to your brokerage account. To do this, log in to your brokerage account and look for an option to add or link a bank account. You will need to provide your bank account number and the routing number for your bank. This information can be found on your checks or by contacting your bank. After linking your bank account, you can initiate a transfer of funds from your bank account to your brokerage account. This process may vary depending on the brokerage, but generally, you will need to navigate to the funding or deposit section of the brokerage website or app. From there, you can choose the linked bank account and enter the amount you wish to transfer. Keep in mind that there may be limits on the amount you can transfer in a single transaction, and the transfer may take several business days to complete. Some brokerages also offer other funding options, such as wire transfers, mailing a check, or transferring assets from another brokerage. If you prefer to use one of these methods, check with your brokerage firm for specific instructions. Once the funds are in your brokerage account, you can use them to purchase investments such as stocks, bonds, mutual funds, or other financial instruments.
Place your American Stock order
Placing an American Airlines purchase order involves providing instructions to your selected brokerage firm to aquare shares of American Airlines Group on your behalf. First, your will need to access your brokerage account through their website or mobile app using your login credentials. Make sure you have sufficient funds in your account to cover the cost of the stock purchase, including any applicable fees or commissions. Once you are logged in, locate the trading platform or order entry section within the brokerage interface. It may be labeled as "Trade," "Order Entry," or something similar. Next, you will need to provide the necessary information to place your stock order. This typically includes: .
After entering the necessary information, review your order carefully to ensure it reflects your intentions accurately. When you are ready, submit your order by clicking the "Submit," "Place Order," or equivalent button. Your brokerage firm will then execute your order according to your instructions, subject to market conditions and the availability of shares. Keep in mind that market orders may be executed immediately, while limit orders, stop orders, and stop-limit orders will only be executed if the specified conditions are met. Finally, monitor your order status and confirm its execution. You can usually find this information in the "Order History" or "Order Status" section of your brokerage account.
| Ticker | Enter the ticker symbol, which is the unique series of letters representing the stock, e.g., AAL for American Airlines Group | |
| Type | Choose the type of order you want to place. The most common order types are market orders, limit orders, stop orders, and stop-limit orders. Each order type has its own advantages and drawbacks, so be sure to research and understand them before placing your order. | |
| Quantity | Specify the number of shares you want to buy or sell | |
| Duration | Indicate the duration for which your order will be active. You can choose from options like "Day" (valid only for the current trading day) or "Good 'til Canceled" (valid until you manually cancel the order) |
Monitor your American Stock position
Monitoring your stock positions with your brokerage involves regularly checking the status and performance of your investments. Here's how you can monitor your stock positions using your brokerage account: First, access your account by signing in to your brokerage firm's website or mobile app using your login credentials. Once you're logged in, look for the section that displays your account information and portfolio holdings. This section may be labeled as "Portfolio," "Positions," "Holdings," or something similar. In this section, you'll generally find a list of the stocks and other investments that you own, along with relevant details such as the number of shares, the current market value, and the percentage change in value since the last trading day's close. You might also see the total cost of your investment, your current profit or loss, and the percentage gain or loss. Many brokerages also provide tools and features that allow you to analyze and track your stock positions more effectively. These may include:
As you continue to monitor your American Stock position, remember that in order to be an effective trader, it is critical to understand your entire portfolio's sensitivity to market volatility and how your single American Airlines position affects your overall exposure to market risk. One of the techniques to manage your overall risk is pair trading, a market-neutral trading strategy enabling traders to profit from virtually any market condition, whether it is experiencing an uptrend or downtrend movement.
| Performance Charts | These charts visually represent the historical price movement of your stocks over different time frames. You can use them to assess the trends and volatility of your investments. | |
| Stock Alerts | You can set up custom alerts to receive notifications when a stock reaches a certain price, percentage change, or other criteria. This can help you stay informed about significant market movements affecting your investments. | |
| Watchlists | Create watchlists to track the performance of stocks you are interested in but have not yet purchased. This can help you identify potential opportunities or risks. | |
| Research Tools | Brokerages often provide access to research tools, such as stock screeners, analyst reports, and financial statements, to help you make more informed investment decisions. |
Moving together with American Stock
| 0.72 | VLRS | Volaris | PairCorr |
| 0.95 | ALK | Alaska Air Group Earnings Call This Week | PairCorr |
| 0.83 | LUV | Southwest Airlines Earnings Call This Week | PairCorr |
Moving against American Stock
| 0.88 | CNI | Canadian National Railway Earnings Call This Week | PairCorr |
| 0.78 | CPA | Copa Holdings SA | PairCorr |
| 0.73 | CP | Canadian Pacific Railway | PairCorr |
| 0.71 | RXO | RXO Inc | PairCorr |
| 0.56 | CSX | CSX Corporation Earnings Call This Week | PairCorr |
| 0.55 | NSC | Norfolk Southern Earnings Call This Week | PairCorr |
| 0.55 | UNP | Union Pacific Earnings Call This Week | PairCorr |
| 0.35 | WERN | Werner Enterprises | PairCorr |
Follow American Stock across various news and media outlets
Far too much social signal, news, headlines, and media speculation about American Airlines that are available to investors today. That information is available publicly through American media outlets and privately through word of mouth or via American internal channels. However, regardless of the origin, that massive amount of American data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of American Airlines news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of American Airlines relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to American Airlines' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive American Airlines alpha.