American Airlines: Short Interest Surge and Robust Q2 Performance

Published by MEXEM Technical Analysis

July 25, 2024 2:51 PM

(GMT+2)

Published - July 20th, 2023 @ 2:30 PM (GMT+2)

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American Airlines Group Inc. (NASDAQ:AAL) observed a substantial increase in short interest during June 2023, and also recorded strong quarterly earnings amidst a travel boom.

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Surge in Short Interest

By the end of June 2023, there was a short interest totaling 67,910,000 shares, marking a 6.8% growth from the June 15th total of 63,590,000 shares. This corresponds to a short-interest ratio of 2.7 days given the average daily volume of 25,210,000 shares.

Despite the stock experiencing a slight dip, down 0.4%, AAL opened at $18.60 on July 20, 2023. The company boasts a 50-day moving average price of $16.22, a 200-day moving average price of $15.42, and a market cap of $12.14 billion. Insider transactions and institutional investments at American Airlines Group have also seen considerable movements.

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Robust Q2 Performance

The airline's second-quarter profit topped estimates, revealing signs of continuous strength in post-pandemic air travel recovery. Adjusted net income rose to $1.37 billion from $533 million the previous year, exceeding Bloomberg's consensus estimates of $1.12 billion.

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Annual Forecast and Market Outlook

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American Airlines upgraded its annual profit forecast amidst strong demand for domestic and international travel, despite potential economic downturn fears. American Airlines expects an adjusted profit of $3.00 to $3.75 per share for 2023, against its previous outlook of $2.50 to $3.50 per share.

Conclusion

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Despite the challenges, American Airlines experienced substantial growth in short interest in June, and its Q2 earnings topped estimates. Given the robust demand for travel, the company has upgraded its profit forecast for 2023.

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The information on mexem.com is for general informational purposes only. It should not be regarded as investment advice. Investing in stocks involves risk. A stock's past performance is not a reliable indicator of its future performance. Always consult a financial advisor or trusted sources before making any investment decisions.

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