American Airlines shares gain for a second straight session on Wednesday, company shares worth $2.4 million purchased by top executives

June 6, 2019 7:30 am

According to regulatory filings by American Airlines Group (AAL), the air carrier’s top six executives earlier this week purchased as many as 85 000 shares of the company’s common stock worth nearly $2.4 million.

American Airlines shares closed higher for a second consecutive trading session on NASDAQ on Wednesday. The stock went up 4.26% ($1.24) to $30.36, after touching an intraday high at $30.45, or a price level not seen since May 22nd ($31.23).

Shares of American Airlines Group have retreated 5.45% so far in 2019 compared with a 12.74% gain for the benchmark index, S&P 500 (SPX).

In 2018, American Airlines’ stock went down 38.29%, thus, it again underperformed the S&P 500, which registered a 6.24% loss.

Regulatory filings with the US Securities and Exchange Commission showed that Doug Parker, American Airlines’ Chief Executive Officer, had purchased 50 000 shares on the open market for as much as $1.4 million. At the same time, American Airlines’ President Robert Isom purchased 15 000 shares for $416 250.

The filings also revealed that American Airlines’ Chief Financial Officer Derek Kerr and three other top managers had purchased 5 000 company shares each for nearly $138 800.

“These share purchases are not part of our compensation package. They were purchased solely because of the value we see in American today and over time,” American Airlines’ executives said in a letter to employees, which did not specify any details of the share purchases.

According to CNN Money, the 19 analysts, offering 12-month forecasts regarding American Airlines Group’s stock price, have a median target of $41.00, with a high estimate of $55.00 and a low estimate of $26.00. The median estimate represents a 35.05% upside compared to the closing price of $30.36 on June 5th.

The same media also reported that 12 out of 22 surveyed investment analysts had rated American Airlines Group’s stock as “Buy”, while 6 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for American Airlines Group (AAL) are presented as follows:

Central Pivot Point – $27.89
R1 – $28.66
R2 – $30.10
R3 – $30.87
R4 – $31.65

S1 – $26.45
S2 – $25.68
S3 – $24.24
S4 – $22.81

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