Controladora Vuela Compania de Aviacion (NYSE:VLRS) Shares Gap Down – Here’s Why

Shares of Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (NYSE:VLRS) gapped down before the market opened on Wednesday . The stock had previously closed at $9.20, but opened at $8.90. Controladora Vuela Compania de Aviacion shares last traded at $9.1150, with a volume of 84,754 shares traded.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on VLRS shares. Evercore ISI increased their price target on shares of Controladora Vuela Compania de Aviacion from $9.00 to $12.00 and gave the company an “outperform” rating in a report on Monday, September 29th. Bank of America boosted their price target on Controladora Vuela Compania de Aviacion from $9.50 to $11.20 and gave the company a “buy” rating in a research note on Monday, December 22nd. Wall Street Zen upgraded Controladora Vuela Compania de Aviacion from a “sell” rating to a “hold” rating in a research report on Saturday, September 20th. Barclays upgraded Controladora Vuela Compania de Aviacion from an “equal weight” rating to an “overweight” rating and boosted their price objective for the company from $9.00 to $11.00 in a research report on Friday, December 19th. Finally, JPMorgan Chase & Co. reaffirmed a “neutral” rating and set a $11.00 price objective (up from $9.50) on shares of Controladora Vuela Compania de Aviacion in a report on Wednesday. Six analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $9.22.

Controladora Vuela Compania de Aviacion Price Performance

The stock has a market capitalization of $1.02 billion, a P/E ratio of -16.13 and a beta of 1.89. The company’s 50 day simple moving average is $8.00 and its two-hundred day simple moving average is $6.74. The company has a debt-to-equity ratio of 1.73, a current ratio of 0.67 and a quick ratio of 0.66.

Controladora Vuela Compania de Aviacion (NYSE:VLRS) last released its quarterly earnings results on Monday, October 27th. The transportation company reported $0.05 EPS for the quarter, topping analysts’ consensus estimates of ($0.03) by $0.08. Controladora Vuela Compania de Aviacion had a negative return on equity of 20.74% and a negative net margin of 2.07%.The business had revenue of $784.00 million for the quarter, compared to analyst estimates of $783.85 million. As a group, equities analysts expect that Controladora Vuela Compania de Aviacion, S.A.B. de C.V. will post 1.21 EPS for the current fiscal year.

Hedge Funds Weigh In On Controladora Vuela Compania de Aviacion

Institutional investors have recently modified their holdings of the stock. Savant Capital LLC bought a new stake in shares of Controladora Vuela Compania de Aviacion during the third quarter worth $77,000. Inspire Investing LLC bought a new stake in Controladora Vuela Compania de Aviacion during the 2nd quarter worth about $55,000. Aquatic Capital Management LLC acquired a new position in Controladora Vuela Compania de Aviacion during the 3rd quarter valued at about $146,000. Inspire Advisors LLC grew its position in shares of Controladora Vuela Compania de Aviacion by 44.7% during the 2nd quarter. Inspire Advisors LLC now owns 25,681 shares of the transportation company’s stock worth $122,000 after buying an additional 7,929 shares during the period. Finally, MMA Asset Management LLC bought a new stake in shares of Controladora Vuela Compania de Aviacion during the third quarter worth approximately $215,000. 53.32% of the stock is owned by institutional investors.

About Controladora Vuela Compania de Aviacion

Controladora Vuela Compañia de Aviacion, SAB de CV (NYSE: VLRS) is a Mexico-based airline holding company whose primary business is the operation of low-cost scheduled air transportation services. Through its principal operating subsidiary, Volaris, the company provides passenger and cargo flights on domestic and international routes. Its business model emphasizes unbundled ancillary services and point-to-point operations designed to offer competitive fares across its network.

Volaris serves more than 120 routes linking major metropolitan areas and secondary cities in Mexico, the United States and Central America.