United Airlines (NASDAQ:UAL) Sees Strong Trading Volume on Earnings Beat

United Airlines Holdings, Inc. (NASDAQ:UAL) saw unusually-strong trading volume on Wednesday following a stronger than expected earnings report. Approximately 5,782,033 shares were traded during trading, a decline of 32% from the previous session’s volume of 8,485,155 shares.The stock last traded at $69.12 and had previously closed at $64.05.

The transportation company reported $3.33 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.10 by $0.23. The business had revenue of $14.84 billion during the quarter, compared to analyst estimates of $14.76 billion. United Airlines had a return on equity of 33.90% and a net margin of 5.28%. During the same quarter in the prior year, the firm earned $3.65 earnings per share.

United Airlines announced that its Board of Directors has initiated a stock buyback program on Tuesday, October 15th that permits the company to repurchase $1.50 billion in shares. This repurchase authorization permits the transportation company to buy up to 7.1% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s board of directors believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on UAL. Susquehanna increased their price objective on United Airlines from $60.00 to $70.00 and gave the company a “positive” rating in a research note on Wednesday, October 9th. Barclays increased their price objective on United Airlines from $66.00 to $75.00 and gave the company an “overweight” rating in a research note on Wednesday. Jefferies Financial Group increased their price objective on United Airlines from $69.00 to $75.00 and gave the company a “buy” rating in a research note on Wednesday, October 2nd. Finally, TD Cowen increased their price objective on United Airlines from $65.00 to $80.00 and gave the company a “buy” rating in a research note on Wednesday, July 17th. Two analysts have rated the stock with a hold rating and thirteen have given a buy rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $74.37.

Institutional Investors Weigh In On United Airlines

Several institutional investors have recently modified their holdings of UAL. B. Riley Wealth Advisors Inc. boosted its position in shares of United Airlines by 8.6% during the fourth quarter. B. Riley Wealth Advisors Inc. now owns 5,671 shares of the transportation company’s stock valued at $234,000 after buying an additional 447 shares during the last quarter. HighPoint Advisor Group LLC purchased a new stake in shares of United Airlines during the fourth quarter valued at $300,000. Moody National Bank Trust Division purchased a new stake in shares of United Airlines during the first quarter valued at $227,000. GAMMA Investing LLC boosted its position in shares of United Airlines by 54.9% during the first quarter. GAMMA Investing LLC now owns 2,698 shares of the transportation company’s stock valued at $129,000 after buying an additional 956 shares during the last quarter. Finally, Mather Group LLC. purchased a new position in United Airlines in the first quarter worth about $44,000. 69.69% of the stock is owned by hedge funds and other institutional investors.

United Airlines Price Performance

The firm has a market capitalization of $23.68 billion, a PE ratio of 8.17, a PEG ratio of 0.94 and a beta of 1.44. The company has a debt-to-equity ratio of 2.07, a current ratio of 0.77 and a quick ratio of 0.71. The firm has a 50-day simple moving average of $50.08 and a 200-day simple moving average of $49.33.

United Airlines Company Profile

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.