United Airlines (NASDAQ:UAL) Shares Up 4.5% – Still a Buy?

United Airlines Holdings, Inc. (NASDAQ:UAL)’s share price traded up 4.5% during mid-day trading on Thursday . The stock traded as high as $95.63 and last traded at $95.59. 2,740,749 shares were traded during trading, a decline of 66% from the average session volume of 8,132,892 shares. The stock had previously closed at $91.47.

Analyst Upgrades and Downgrades

Several research firms have recently commented on UAL. Jefferies Financial Group boosted their price target on shares of United Airlines from $75.00 to $95.00 and gave the company a “buy” rating in a report on Monday, October 21st. Bank of America lifted their price target on shares of United Airlines from $70.00 to $84.00 and gave the stock a “buy” rating in a report on Thursday, October 17th. Sanford C. Bernstein increased their price objective on shares of United Airlines from $68.00 to $85.00 and gave the company an “outperform” rating in a research report on Thursday, October 17th. Dbs Bank raised United Airlines from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, November 26th. Finally, Barclays lifted their price objective on shares of United Airlines from $75.00 to $150.00 and gave the company an “overweight” rating in a research note on Thursday, November 14th. One investment analyst has rated the stock with a hold rating, fifteen have given a buy rating and two have given a strong buy rating to the company’s stock. Based on data from MarketBeat, United Airlines has a consensus rating of “Buy” and a consensus price target of $98.95.

United Airlines Price Performance

The company has a quick ratio of 0.72, a current ratio of 0.79 and a debt-to-equity ratio of 1.95. The company has a market capitalization of $32.03 billion, a price-to-earnings ratio of 11.75, a PEG ratio of 1.12 and a beta of 1.44. The stock’s 50-day simple moving average is $87.67 and its two-hundred day simple moving average is $61.99.

United Airlines (NASDAQ:UAL) last released its quarterly earnings results on Tuesday, October 15th. The transportation company reported $3.33 earnings per share for the quarter, topping the consensus estimate of $3.10 by $0.23. The firm had revenue of $14.84 billion during the quarter, compared to the consensus estimate of $14.76 billion. United Airlines had a net margin of 4.94% and a return on equity of 30.72%. During the same quarter in the prior year, the firm earned $3.65 EPS. Equities research analysts predict that United Airlines Holdings, Inc. will post 10.27 earnings per share for the current year.

United Airlines announced that its board has initiated a share buyback program on Tuesday, October 15th that allows the company to buyback $1.50 billion in shares. This buyback authorization allows the transportation company to reacquire up to 7.1% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s leadership believes its shares are undervalued.

Insider Activity

In other United Airlines news, EVP Linda P. Jojo sold 60,000 shares of United Airlines stock in a transaction dated Friday, November 22nd. The shares were sold at an average price of $95.12, for a total transaction of $5,707,200.00. Following the transaction, the executive vice president now directly owns 63,599 shares of the company’s stock, valued at $6,049,536.88. The trade was a 48.54 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Torbjorn J. Enqvist sold 14,500 shares of the stock in a transaction that occurred on Thursday, October 17th. The shares were sold at an average price of $72.00, for a total transaction of $1,044,000.00. Following the completion of the sale, the executive vice president now directly owns 30,427 shares of the company’s stock, valued at approximately $2,190,744. This trade represents a 32.27 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 92,000 shares of company stock worth $8,158,900 over the last three months. Insiders own 0.63% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Global Trust Asset Management LLC purchased a new position in shares of United Airlines during the 3rd quarter worth $29,000. Strategic Investment Solutions Inc. IL acquired a new stake in shares of United Airlines during the second quarter valued at about $30,000. UMB Bank n.a. raised its stake in shares of United Airlines by 59.7% in the 2nd quarter. UMB Bank n.a. now owns 682 shares of the transportation company’s stock valued at $33,000 after acquiring an additional 255 shares during the period. Armstrong Advisory Group Inc. acquired a new position in shares of United Airlines in the 3rd quarter worth approximately $36,000. Finally, Quest Partners LLC lifted its holdings in shares of United Airlines by 3,504.8% in the 2nd quarter. Quest Partners LLC now owns 757 shares of the transportation company’s stock worth $37,000 after acquiring an additional 736 shares during the last quarter. 69.69% of the stock is currently owned by hedge funds and other institutional investors.

About United Airlines

United Airlines Holdings, Inc, through its subsidiaries, provides air transportation services in North America, Asia, Europe, Africa, the Pacific, the Middle East, and Latin America. The company transports people and cargo through its mainline and regional fleets. It also offers catering, ground handling, flight academy, and maintenance services for third parties.