American Airlines Sees 17.1% Short Interest Drop to 51.8M Shares, Adds 100 O’Hare Flights
American Airlines saw short interest fall 17.1% to 51.85 million shares as of December 15, trimming its short-interest ratio to 0.9 days and lowering bearish stakes to 7.9% of the float. The carrier also plans to launch 100 additional spring flights at O’Hare, intensifying competition with United on key routes.
1. Significant Decline in Short Interest
American Airlines Group experienced a notable 17.1% reduction in shares sold short during December, with short interest falling from 62,558,573 shares on November 30 to 51,847,312 shares as of December 15. Based on an average daily trading volume of 58,278,273 shares, the short-interest ratio stands at just 0.9 days. This decrease brings the proportion of shares sold short to 7.9%, signaling waning bearish sentiment among market participants.
2. Mixed Analyst Ratings and Upward Price Targets
Analyst sentiment remains split: Citigroup and UBS Group recently initiated and maintained “buy” recommendations, setting targets of 19.00 and 20.00 respectively, while Susquehanna upgraded its target from 10.00 to 12.00 alongside a neutral recommendation. Cowen reaffirmed its “buy” stance in late October, and Weiss Ratings reiterated a “sell (d+)” opinion. Of the 19 analysts covering the stock, one rates it a Strong Buy, eight rate it a Buy, eight assign a Hold, and two a Sell, resulting in a consensus Hold rating with an average target of 16.46.
3. Q3 Results and 2025 Guidance Point to Modest Profitability
In its latest quarterly report, American Airlines delivered adjusted EPS of (0.17), beating the consensus estimate by 10 cents, and generated revenue of 13.69 billion, slightly above the expected 13.65 billion. The carrier reported a net margin of 1.11% and a negative return on equity of 18.14%. Year-over-year, revenue grew by 0.3%. For Q4, management projects EPS between 0.450 and 0.750, and for the full year 2025, EPS guidance ranges from 0.650 to 0.950. Analysts, on average, expect full-year 2024 EPS of 2.42, underscoring moderate profitability under current market conditions.