American Airlines Group Inc. taking advantage of the recent rise in its stock price, set a new plan for the sale of up to $ 1.1 billion of shares.
The new plan follows AAL’s stock,
a 9.3% increase on Thursday after fourth-quarter results, and 17.3% over the past three days. Some analysts suggested that the gains were relatively high associated with the recent trading frenzy in stocks with a high number of betish bets against them.
American shares rallied 1.8% in Friday morning trading, while U.S. traded funds Jets Global Jets, JETS,
lost 1.1% and the S&P 500 SPX index,
decreased 0.6%.
Kudos to Cowen analyst Helane Becker, who said Thursday that the company could take the opportunity at the recent rally, which she did not believe was fundamentally driven by an equity offer.
Don’t miss out: American Airlines stock goes up after Q4 results but is ‘spreading with fundamentals,’ the analyst says.
On Friday, American Airlines announced in an 8-K filing with the Securities and Exchange Commission that they had entered into a “new equity circulation agreement” for the issuance and sale at the market (ATM) periodically up to $ 1.12 billion worth of shares. The deal was made with Goldman Sachs, Citigroup, Barclays and BNP Paribas.
Separately, America said it ended its previous $ 1 billion balance sheet deal, which expired on October 22, 2020. As part of that agreement, America said it raised $ 882.4 million , through the sale of 68.56 million shares of common stock at an average price of $ 12.87.
The airline also said that Boeing Co.’s new planes. to be delivered by the end of this year or in 2022, including new jets 737 Max. The plane crashed worldwide for nearly two years after two fatal crashes, and was cleared to fly again in the U.S. in November. Earlier this week European aviation authorities followed suit.
The company said it has agreed to deliver five Max aircraft so far this year, with a further six delivered in 2021 and 10 in 2022. America also expects to ship 19 787 “Dreamliner” aircraft. delivered for 2021, and from several Aib21Neo Aibus this year and next.
Shares of American Airlines have lost 22% in the past 12 months, compared to gains of around 15% for the S&P 500 index.