American Airlines Group Inc. (AAL) Shares Slip, Investors Watching Closely, Here is Why

American Airlines Group Inc. (NASDAQ: AAL) shares fell in early trade today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Meanwhile stocks opened fat this morning as investors wait on the minutes from the Federal Reserve’s latest policy meeting, which may confirm expectations for a December rate hike.

The S&P 500 was up 2 points, or 0.1%, to 2,138. The Dow Jones Industrial Average was flat at 18,128. The Nasdaq Composite began the session unchanged at 5,247.

Analysts at Zacks Investment Research downgraded shares of American Airlines Group Inc. (NASDAQ: AAL) from Hold to Strong Sell in a research note to investors today. Zacks Investment Research currently has a rating of Strong Sell on the stock. The one-year price target of $41.58 is higher than the opening price of $38.12, that has caused a fair amount of other analysts to issue statements on the stock in recent days. Looking back over the last year, American Airlines Group Inc. stock has a high of $47.09. Downgrades occur when analysts feel that the future prospects for the security have diminished from the original recommendation, usually caused by a material and major digression in the company’s procedures, future outlook or industry.

Shares of American Airlines Group Inc. (NASDAQ: AAL) opened at $38.12 yesterday and traded in a range between, $37.43 and $38.38, and last traded at $37.67, a dip of $0.53 per share or -0.01 over the previous closing price.

American Airlines Group Inc. (NASDAQ: AAL) now has a market cap of 19.96B.

American Airlines Group Inc.Trading Volume

The stock’s average daily volume is 8,651,620 shares out of a total float 524,624,000 and some 888,179 shares crossed the trading desk yesterday, below normal. Look for trading volume to pick up in the coming days as swing traders often use upticks in trading volume to identify large volume growth or distribution by institutional investors.

While higher trading for short periods will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks expresses a positive cue to market traders that institutions may be moving in, so institutional sponsorship is very important.

Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Institutional investors such as these retain teams of analysts that investigate thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.

American Airlines Group Inc. Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.

Trades for American Airlines Group Inc. (NASDAQ: AAL) have ranged from $24.85 – 47.0900, and the stock now has a 50-day MA of $36.78 and 200-day MA of $34.93. Today’s last price is 0.20% lower than the 52 week high of $47.09.

Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have raised their earnings by at least 25% for a 3 year period.

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