Controladora Vuela Compania de Aviacion (NYSE:VLRS) Stock Gets Downgrade from Wall Street Zen

Key Points

• Wall Street Zen downgraded VLRS from “hold” to “sell,” adding to mixed analyst sentiment. The stock has an average “hold” rating and a consensus price target of $9.40.
• Shares opened at $5.68, near their 52-week low of $5.50 and below both the 50-day and 200-day moving averages.
• Volaris reported a quarterly loss of $1.11 per share, missing estimates by $0.03, despite revenue of $859 million exceeding expectations; analysts expect a full-year loss of $2.49 per share.

Controladora Vuela Compania de Aviacion (NYSE:VLRS - Get Free Report) was downgraded by Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Saturday, Wall Street Zen reports.

Several other research firms have also weighed in on VLRS. UBS Group lifted their price objective on Controladora Vuela Compania de Aviacion from $9.00 to $11.00 and gave the company a "buy" rating in a research note on Wednesday, August 5th. Weiss Ratings downgraded shares of Controladora Vuela Compania de Aviacion from a "sell (d)" rating to a "sell (e+)" rating in a research report on Friday, July 31st. Zacks Research lowered shares of Controladora Vuela Compania de Aviacion from a "hold" rating to a "strong sell" rating in a report on Thursday, October 15th. Finally, The Goldman Sachs Group cut their price target on shares of Controladora Vuela Compania de Aviacion from $8.60 to $7.70 and set a "neutral" rating on the stock in a report on Tuesday, August 11th. Three analysts have rated the stock with a Buy rating, three have given a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $9.40.

Controladora Vuela Compania de Aviacion Price Performance

Shares of NYSE VLRS opened at $5.68 on Friday. The stock has a fifty day moving average price of $6.53 and a 200 day moving average price of $7.42. Controladora Vuela Compania de Aviacion has a 1-year low of $5.50 and a 1-year high of $10.80. The company has a quick ratio of 0.64, a current ratio of 0.64 and a debt-to-equity ratio of 6.78.

Controladora Vuela Compania de Aviacion (NYSE:VLRS - Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The transportation company reported ($1.11) earnings per share (EPS) for the quarter, missing the consensus estimate of ($1.08) by ($0.03). Controladora Vuela Compania de Aviacion had a negative return on equity of 93.91% and a negative net margin of 5.71%. The business had revenue of $859.00 million during the quarter, compared to analysts' expectations of $854.70 million. On average, research analysts anticipate that Controladora Vuela Compania de Aviacion will post -2.49 EPS for the current year.

Hedge Funds Weigh In On Controladora Vuela Compania de Aviacion

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Confluence Investment Management LLC boosted its position in shares of Controladora Vuela Compania de Aviacion by 5.6% in the third quarter. Confluence Investment Management LLC now owns 32,386 shares of the transportation company's stock valued at $212,000 after acquiring an additional 1,710 shares during the period. WINTON GROUP Ltd bought a new stake in Controladora Vuela Compania de Aviacion in the 2nd quarter valued at $653,000. FNY Investment Advisers LLC bought a new stake in Controladora Vuela Compania de Aviacion in the 2nd quarter valued at $187,000. GAMMA Investing LLC increased its holdings in Controladora Vuela Compania de Aviacion by 238.7% in the 2nd quarter. GAMMA Investing LLC now owns 3,265 shares of the transportation company's stock valued at $31,000 after buying an additional 2,301 shares during the period. Finally, Empowered Funds LLC bought a new position in shares of Controladora Vuela Compania de Aviacion during the 1st quarter worth about $1,103,000. 53.32% of the stock is owned by institutional investors.

Controladora Vuela Compania de Aviacion Company Profile

Controladora Vuela Compañía de Aviación, SAB. de C.V., operating under the Volaris brand, is a Mexican ultra-low-cost airline. The company provides scheduled passenger air transportation, along with ancillary services such as baggage, seat selection and other travel-related offerings.

Volaris began operations in 2006 and serves a broad network of destinations in Mexico, the United States, and Central America. Its business model emphasizes affordable base fares, high aircraft utilization and the separate sale of optional services.

Controladora Vuela is headquartered in Mexico City and is listed on the New York Stock Exchange under the symbol VLRS.

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