American Airlines Group, Inc. (AAL) Stock Down After Price Target Increase at Imperial Capital

American Airlines Group, Inc. (NASDAQ: AAL) shares were down in early trading today on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock, boosting the price target of stock.

Meanwhile, U.S. stocks opened significantly lower in early trading. The Dow Jones Industrial Average was 58 points lower, or 0.29% to 19895, the S&P 500 fell 7 points, or 0.28% to 2268, while the Nasdaq dropped 22 points, or 0.38% to 5542.

American Airlines Group, Inc. (NASDAQ: AAL) had its price target raised by equities researchers at Imperial Capital from $49.00 to $52.00. The company currently has a rating of In-Line on the shares. The one-year price target of $55.13 is higher than the opening price of $48.67, causing a fair amount of other analysts to issue statements on the company recently. Looking back over the last 52 weeks, American Airlines Group, Inc. stock has a high of $50.64.

Yesterday American Airlines Group, Inc. (NASDAQ: AAL) shares last traded at $48.51, which is a dip of $0.13 compared to the previous closing price. Opening at $48.67, they ranged from $48.25 and $49.00 throughout the day.

American Airlines Group, Inc. (NASDAQ: AAL) now has a market cap of 25.13B.

American Airlines Group, Inc. (NASDAQ: AAL) Average Daily Trading Volume

501,824 shares traded hands yesterday, 107 percent lower than the norm, out of a total float 491,358,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.

However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.

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

Institutional investors such as these have teams of analysts that investigate thousands of stocks, so it is good corroboration to see them buying a stock you are considering.

American Airlines Group, Inc. (NASDAQ: AAL) 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 traders 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 – 50.64, and the stock now has a 50-day MA of $47.30 and 200-day MA of $38.96. Today’s last price is 4.21%% lower than the 52 week high of $50.64.

Earnings growth is a crucial factor to look at when buying stocks and investors look for companies that have been successful at growing their earnings by at least 25% over a 3 year period.

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