Shares of American Airlines Group Inc. (AAL) sank 6.1% in afternoon trading Wednesday, and have now shed 35% since closing at a 3 1/2-month high on June 8, as worries about a surge in COVID-19 cases overshadowed upbeat analyst comments on the air carrier's recent liquidity boost ( ). With more than half the U.S. states showing increases in COVID-19 infections, New York, New Jersey and Connecticut, which have declining rates of infections, said they will impose a 14-day quarantine on travelers ( ) from new hotspot states, including Florida, Texas, Arizona and North Carolina. Meanwhile, Cowen analyst Helane Becker reiterated her outperform rating on American's stock for the past three years, and her $20 stock price target, as she praised the additional liquidity the air carrier raised. Early Tuesday, the company said its public offering of 74.1 million shares priced at $13.50, to raise $1.00 billion, and that it priced a public offering of $1 billion in 6.50% convertible senior notes due 2025. "American remains a contrarian stock idea but in our view, the improved liquidity situation is a net positive," Becker wrote in a note to clients. American's stock outperformed its peers, as shares of United Airlines Holdings Inc. (UAL) dropped 7.7%, Delta Air Lines Inc. (DAL) slid 7.7%, JetBlue Airways Corp. (JBLU) lost 8.6% and Southwest Airlines Co. (LUV) gave up 6.4%. Meanwhile, the Dow Jones Industrial Average was down 768 points, or 2.9%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
June 24, 2020 13:38 ET (17:38 GMT)
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