American Airlines is set to report earnings after Thursday's close
American Airlines Group Inc (NASDAQ:AAL) is 1.2% lower at $10.57 this afternoon, following a pre-earnings bear note at Bernstein. The analyst slashed its price target on AAL to $12 from $18, as the airline name prepares to report second-quarter results before the open on Thursday, July 25.
Over the past eight quarters, the stock has logged five positive post-earnings moves, including a 10.3% bounce after its January report. On average, AAL averaged a 4.2% move --regardless of direction -- the day after earnings over the past two years. This time around, the options pits are pricing in a much bigger 11.7% move.
On the charts, American Airlines stock is trading south of the $10.80 mark, which saved an extended 2023 pullback that culminated in an Oct. 31, three-year low of $10.86. The security is now sitting in territory not seen since 2020 after losing seven of its last 10 sessions, and sports a 23% and 37.4% year-to-date and year-over-year deficit, respectively.
The options pits are more bearish than usual right now. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), American Airlines stock carries a 50-day put/call volume ratio of 1.05 that sits higher than all other readings from the past year. Echoing this, its Schaeffer's put/call open interest ratio (SOIR) of 2.49 sits in the elevated 75th percentile of its annual range.