United Airlines (NASDAQ:UAL) Shares Gap Up – Still a Buy?

Shares of United Airlines Holdings Inc (NASDAQ:UAL) gapped up prior to trading on Monday. The stock had previously closed at $104.24, but opened at $108.96. United Airlines shares last traded at $111.2820, with a volume of 1,711,271 shares.

Analysts Set New Price Targets

Several research firms have commented on UAL. UBS Group cut their price objective on United Airlines from $146.00 to $139.00 and set a “buy” rating for the company in a research note on Friday, October 16th. Jefferies Financial Group restated a “buy” rating and issued a $142.00 target price on shares of United Airlines in a research report on Wednesday, October 21st. Wall Street Zen lowered United Airlines from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. TD Cowen dropped their price target on United Airlines from $192.00 to $167.00 and set a “buy” rating for the company in a research report on Friday, October 2nd. Finally, Sanford C. Bernstein set a $160.00 price target on United Airlines in a research report on Tuesday, October 20th. Sixteen equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, United Airlines presently has an average rating of “Moderate Buy” and a consensus target price of $156.19.

United Airlines Trading Down 1.9%

The company has a current ratio of 0.75, a quick ratio of 0.68 and a debt-to-equity ratio of 1.38. The company has a fifty day moving average price of $107.44 and a two-hundred day moving average price of $108.22. The firm has a market capitalization of $34.83 billion, a price-to-earnings ratio of 12.39, a PEG ratio of 1.38 and a beta of 1.38.

United Airlines (NASDAQ:UAL) last announced its quarterly earnings results on Tuesday, October 20th. The transportation company reported $2.54 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.57 by ($0.03). The firm had revenue of $17.88 billion for the quarter, compared to analyst estimates of $17.89 billion. United Airlines had a return on equity of 17.59% and a net margin of 5.46%. The firm’s quarterly revenue was up 17.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.78 EPS. As a group, research analysts forecast that United Airlines Holdings Inc will post 7.17 earnings per share for the current fiscal year.

Insider Activity

In other news, President Brett Hart sold 39,000 shares of the firm’s stock in a transaction that occurred on Friday, October 30th. The shares were sold at an average price of $102.68, for a total value of $4,004,520.00. Following the completion of the transaction, the president owned 325,122 shares of the company’s stock, valued at approximately $33,383,526.96. This trade represents a 10.71% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, EVP Andrew P. Nocella sold 5,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $117.00, for a total transaction of $585,000.00. Following the completion of the transaction, the executive vice president directly owned 214,955 shares of the company’s stock, valued at approximately $25,149,735. The trade was a 2.27% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.86% of the company’s stock.

Institutional Investors Weigh In On United Airlines

Hedge funds have recently added to or reduced their stakes in the business. Dunhill Financial LLC purchased a new stake in United Airlines during the 2nd quarter worth about $25,000. Western Wealth Management LLC acquired a new position in shares of United Airlines in the 1st quarter valued at $27,000. Elevation Wealth Partners LLC grew its holdings in shares of United Airlines by 393.0% during the second quarter. Elevation Wealth Partners LLC now owns 212 shares of the transportation company’s stock worth $29,000 after purchasing an additional 169 shares during the last quarter. Trust Co. of Vermont purchased a new position in United Airlines during the 2nd quarter worth approximately $29,000. Finally, Rakuten Securities Inc. acquired a new position in shares of United Airlines in the 2nd quarter valued at $32,000. 69.69% of the stock is currently owned by institutional investors and hedge funds.

United Airlines Company Profile

United Airlines Holdings, Inc is the parent company of United Airlines, a major U.S. commercial airline headquartered in Chicago, Illinois. The company provides scheduled passenger air transportation and air cargo services, connecting customers across the United States and to international destinations.

United operates a broad network serving North America, Latin America, Europe, Asia, Africa and Oceania. Its operations are supported by hubs in major U.S. cities, including Chicago, Denver, Houston, Los Angeles, Newark, San Francisco and Washington, DC, as well as an extensive network of regional carriers operating under the United Express brand.

The company offers several travel classes and related services, including premium-cabin seating, onboard amenities, airport lounges and the MileagePlus customer loyalty program.