Institutional investors may overlook American Airlines Group Inc.'s (NASDAQ:AAL) recent US$866m market cap drop as long-term gains remain positive

In This Article:

Key Insights

  • Institutions' substantial holdings in American Airlines Group implies that they have significant influence over the company's share price

  • The top 25 shareholders own 45% of the company

  • Recent sales by insiders

A look at the shareholders of American Airlines Group Inc. (NASDAQ:AAL) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are institutions with 56% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

No shareholder likes losing money on their investments, especially institutional investors who saw their holdings drop 7.1% in value last week. However, the 22% one-year returns may have helped alleviate their overall losses. They should, however, be mindful of further losses in the future.

In the chart below, we zoom in on the different ownership groups of American Airlines Group.

View our latest analysis for American Airlines Group

ownership-breakdown
NasdaqGS:AAL Ownership Breakdown January 30th 2025

What Does The Institutional Ownership Tell Us About American Airlines Group?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that American Airlines Group does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at American Airlines Group's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NasdaqGS:AAL Earnings and Revenue Growth January 30th 2025

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. American Airlines Group is not owned by hedge funds. Our data shows that The Vanguard Group, Inc. is the largest shareholder with 9.4% of shares outstanding. With 8.7% and 8.3% of the shares outstanding respectively, PRIMECAP Management Company and BlackRock, Inc. are the second and third largest shareholders.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.