We recently published a list of 10 Most Active US Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where American Airlines Group Inc. (NASDAQ:AAL) stands against other most active US stocks to buy according to hedge funds.
Over the past five years, the U.S. stock market has experienced growth in trading volume. According to data from the World Bank, the total value of stocks traded in the U.S. increased from approximately $36.3 trillion in 2019 to over $44.3 trillion in 2022. The upward trend reflects the U.S. stock market’s growth over the years. As of March 11, 2025, the total consolidated volume reached 19.3 billion shares, with major exchanges like NYSE and NASDAQ contributing significantly to this activity.
Correlation Between Trading Volume and Stock Returns
Empirical studies have explored the relationship between trading volume and stock returns. For example, research on the BRVM found a directly proportional relationship between stock returns and trading volume. This means that when a stock sees an increase in volume, it might also experience a corresponding change in its return profile. The practical takeaway is that active stocks often benefit from greater investor interest, which can, in turn, drive short-term price momentum.
While trading volume remains strong, the broader U.S. stock market is currently facing heightened volatility and economic uncertainty. The broader market index has dropped nearly 9% over the past month, reversing its gains from late 2024. This decline is largely driven by trade tensions and policy shifts, with new tariffs imposed on imports from China, Mexico, and Canada adding to investor concerns.
The uncertainty surrounding these trade policies has led to increased caution among investors and a shift in investment strategies. Major indices, including NYSE and NASDAQ, have shown instability, while the Magnificent Seven tech stocks have collectively fallen by 14% in the last three weeks. Financial institutions have adjusted their forecasts in light of these developments. Goldman Sachs, for instance, has reduced its year-end target for the broader market from 6,500 to 6,200, citing elevated policy uncertainty and tighter financial conditions.
While the market may face challenges, hedge funds continue to target stocks that remain highly active and resilient in volatile conditions. They often focus on highly active stocks due to their liquidity, volatility, and potential for short-term gains. Active stocks, characterized by high trading volume, provide hedge funds with the flexibility to enter and exit positions efficiently without significantly impacting prices. This makes them ideal for strategies such as momentum trading, arbitrage, and algorithmic trading. For instance, data from a leading electronic platform for the trading of bonds indicated that hedge funds’ share of trading volumes in the European government bond (EGB) secondary market surged from 26% in 2018 to 56% in 2023. This substantial increase underscores hedge funds’ preference for markets where high trading volumes allow for swift entry and exit positions.
Our Methodology
To identify the 10 most active US stocks to buy according to hedge funds, we used the Finviz stock screener to filter stocks with an average trading volume above 2 million shares. These stocks were then sorted by volume to highlight the most actively traded ones. Next, we ranked them based on Q4 2024 hedge fund sentiment data from Insider Monkey, analyzing recent 13F filings to determine which stocks had the highest institutional interest. The stocks below are ranked according to the number of hedge fund holders.
At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A passenger jet taking off, representing the company’s commitment to air transportation services.
American Airlines Group Inc. (NASDAQ:AAL)
No of hedge fund holders: 59
American Airlines Group Inc. (NASDAQ:AAL) is a network air carrier, providing passenger and cargo transportation across a vast domestic and international route network.
American Airlines Group Inc. (NASDAQ:AAL) CEO Robert Isom is set to present at the 2025 J.P. Morgan Industrials Conference on March 11 at 8 a.m. CT. This event provides a key opportunity for investors to gain insights into the airline’s financial performance, strategic initiatives, and market outlook. With recent expansions at Chicago O’Hare and ongoing investments in premium services, technology, and route growth, the presentation may offer updates on revenue trends, cost management, and competitive positioning.
The company reported record revenue of $54.2 billion for full year 2024. It posted a GAAP net income of $846 million, while adjusted net income stood at $1.4 billion, reflecting improved operational efficiency and demand strength. Operating cash flow reached $4 billion, with a record $2.2 billion in free cash flow, reinforcing its financial position. Notably, it achieved its $15 billion debt reduction goal a year ahead of schedule.
Overall, AAL ranks 5th on our list of most active US stocks to buy according to hedge funds. While we acknowledge the potential for AAL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AAL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
