A Reversal for American Airlines Group Inc Is Not Near. Professional Options Traders Are Bearish

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In today’s session American Airlines Group Inc (AAL) recorded an unusually high (9,992) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the December, 2015 put, expecting serious AAL decrease. With 9,992 contracts traded and 1600 open interest for the Dec, 15 contract, it seems this is a quite bearish bet. The option with symbol: AAL151218P00043000 closed last at: $1.46 or 0.7% up. The stock is up 1.37% or $0.62 after the news, hitting $46.29 per share. About 7.51 million shares traded hands. American Airlines Group Inc (NASDAQ:AAL) has declined 16.05% since March 23, 2015 and is downtrending. It has underperformed by 14.66% the S&P500.

Out of 6 analysts covering American Airlines Group (NASDAQ:AAL), 4 rate it “Buy”, 0 “Sell”, while 2 “Hold”. This means 67% are positive. American Airlines Group was the topic in 11 analyst reports since July 28, 2015 according to StockzIntelligence Inc.

The institutional sentiment decreased to 1.03 in Q2 2015. Its down 0.09, from 1.12 in 2015Q1. The ratio turned negative, as 110 funds sold all American Airlines Group Inc shares owned while 209 reduced positions. 107 funds bought stakes while 220 increased positions. They now own 481.50 million shares or 18.94% less from 593.98 million shares in 2015Q1.

Contrarian Capital Management L.L.C. holds 13.29% of its portfolio in American Airlines Group Inc for 673,480 shares. Cyrus Capital Partners L.P. owns 3.35 million shares or 12.3% of their US portfolio. Moreover, Knighthead Capital Management Llc has 8.93% invested in the company for 2.42 million shares. The California-based Ares Management Llc has invested 7.44% in the stock. Altimeter Capital Management Lp, a Massachusetts-based fund reported 2.00 million shares.

Since March 25, 2015, the stock had 0 insider purchases, and 9 selling transactions for $33.65 million net activity. Parker W Douglas sold 60,362 shares worth $2.31 million. Johnson Stephen L sold 87,161 shares worth $4.29 million. Kerr Derek J sold 2,250 shares worth $111,150. Isom Robert D Jr sold 94,765 shares worth $4.66M. The insider Kirby J Scott sold 262,471 shares worth $12.99M.

American Airlines Group Inc. is a holding firm and its wholly-owned subsidiaries include American Airlines, Inc. (American), US Airways Group, Inc. (US Airways Group) and Envoy Aviation Group Inc. (Envoy). The company has a market cap of $30.62 billion. US Airways Group’s principal subsidiary include US Airways, Inc. (US Airways) and its other wholly-owned subsidiaries include Piedmont Airlines, Inc. (Piedmont), and PSA Airlines, Inc. (PSA). It has 7.96 P/E ratio. AAG’s primary business activity includes the operation of two network carriers through its principal, wholly-owned mainline operating subsidiaries: American and US Airways.

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