United Airlines (NASDAQ:UAL) Hits New 1-Year High on Better-Than-Expected Earnings

Shares of United Airlines Holdings, Inc. (NASDAQ:UAL) reached a new 52-week high on Wednesday following a better than expected earnings announcement. The company traded as high as $116.72 and last traded at $114.24, with a volume of 188814 shares. The stock had previously closed at $110.52.

The transportation company reported $3.26 earnings per share for the quarter, topping analysts’ consensus estimates of $2.96 by $0.30. The company had revenue of $14.70 billion during the quarter, compared to analyst estimates of $14.40 billion. United Airlines had a return on equity of 30.72% and a net margin of 4.94%. United Airlines’s revenue was up 7.8% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.00 earnings per share.

United Airlines declared that its Board of Directors has initiated a share repurchase program on Tuesday, October 15th that allows the company to buyback $1.50 billion in outstanding shares. This buyback authorization allows the transportation company to repurchase up to 7.1% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s management believes its stock is undervalued.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on UAL shares. UBS Group upped their price target on United Airlines from $139.00 to $140.00 and gave the stock a “buy” rating in a research report on Tuesday, January 7th. TD Cowen raised their target price on United Airlines from $100.00 to $125.00 and gave the stock a “buy” rating in a research note on Tuesday, November 19th. Morgan Stanley raised their target price on United Airlines from $88.00 to $130.00 and gave the stock an “overweight” rating in a research note on Wednesday, December 11th. Melius Research upgraded United Airlines to a “strong-buy” rating in a research note on Monday, December 2nd. Finally, Susquehanna raised their target price on United Airlines from $85.00 to $120.00 and gave the stock a “positive” rating in a research note on Tuesday, January 7th. One equities research analyst has rated the stock with a hold rating, sixteen have given a buy rating and two have given a strong buy rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Buy” and an average price target of $106.45.

Insiders Place Their Bets

In other United Airlines news, EVP Linda P. Jojo sold 60,000 shares of the company’s stock in a transaction on Friday, November 22nd. The shares were sold at an average price of $95.12, for a total value of $5,707,200.00. Following the completion of the transaction, the executive vice president now owns 63,599 shares in the company, valued at $6,049,536.88. This represents a 48.54 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP Kate Gebo sold 17,500 shares of the company’s stock in a transaction dated Friday, November 1st. The shares were sold at an average price of $80.44, for a total transaction of $1,407,700.00. Following the completion of the sale, the executive vice president now directly owns 40,012 shares of the company’s stock, valued at $3,218,565.28. The trade was a 30.43 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 0.63% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the company. Global Trust Asset Management LLC acquired a new stake in shares of United Airlines in the third quarter valued at approximately $29,000. Strategic Investment Solutions Inc. IL purchased a new position in United Airlines during the second quarter worth approximately $30,000. Armstrong Advisory Group Inc. purchased a new position in shares of United Airlines in the 3rd quarter valued at $36,000. Winch Advisory Services LLC purchased a new position in shares of United Airlines in the 4th quarter valued at $38,000. Finally, Blue Trust Inc. increased its stake in United Airlines by 108.6% during the 3rd quarter. Blue Trust Inc. now owns 753 shares of the transportation company’s stock worth $43,000 after buying an additional 392 shares during the period. 69.69% of the stock is owned by hedge funds and other institutional investors.

United Airlines Price Performance

The stock has a market cap of $35.51 billion, a PE ratio of 13.02, a P/E/G ratio of 0.78 and a beta of 1.44. The company has a current ratio of 0.79, a quick ratio of 0.72 and a debt-to-equity ratio of 1.95. The company’s 50 day moving average is $98.51 and its 200-day moving average is $70.24.

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.