JetBlue Airways (NASDAQ:JBLU) Stock Lifted to Neutral by Citigroup

Key Points

• Citigroup upgraded JetBlue Airways from “sell” to “neutral” and set a $4.50 price target, implying approximately 10.84% upside from the reported share price.
• Analyst sentiment remains cautious: JetBlue has a consensus “reduce” rating, with eight holds and five sells, and an average price target of $5.20.
• JetBlue exceeded quarterly expectations with a loss of $0.66 per share versus the estimated $0.69 loss and revenue of $2.70 billion, but it continues to report negative profitability metrics and high leverage, including a 5.04 debt-to-equity ratio.

JetBlue Airways (NASDAQ:JBLU - Get Free Report) was upgraded by investment analysts at Citigroup from a "sell" rating to a "neutral" rating in a research note issued to investors on Tuesday, Marketbeat.com reports. The brokerage currently has a $4.50 price target on the transportation company's stock. Citigroup's target price indicates a potential upside of 10.84% from the company's current price.

Several other equities research analysts also recently weighed in on the company. Susquehanna increased their price target on JetBlue Airways from $5.00 to $6.00 and gave the stock a "neutral" rating in a report on Tuesday, July 7th. Wall Street Zen cut JetBlue Airways from a "sell" rating to a "strong sell" rating in a report on Saturday, August 22nd. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of JetBlue Airways in a research report on Friday, July 17th. Barclays reduced their target price on JetBlue Airways from $7.00 to $5.00 and set an "equal weight" rating on the stock in a research note on Friday, September 11th. Finally, Raymond James Financial reissued an "underperform" rating on shares of JetBlue Airways in a research note on Monday, July 6th. Eight analysts have rated the stock with a Hold rating and five have issued a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Reduce" and an average price target of $5.20.

JetBlue Airways Price Performance

JBLU stock opened at $4.06 on Tuesday. JetBlue Airways has a 12 month low of $3.87 and a 12 month high of $6.62. The company has a current ratio of 0.70, a quick ratio of 0.63 and a debt-to-equity ratio of 5.04. The company has a 50-day moving average price of $4.95 and a 200 day moving average price of $5.06. The stock has a market cap of $1.53 billion, a PE ratio of -1.70 and a beta of 1.77.

JetBlue Airways (NASDAQ:JBLU - Get Free Report) last posted its quarterly earnings data on Tuesday, July 28th. The transportation company reported ($0.66) earnings per share for the quarter, topping analysts' consensus estimates of ($0.69) by $0.03. The company had revenue of $2.70 billion for the quarter, compared to analyst estimates of $2.69 billion. JetBlue Airways had a negative net margin of 9.32% and a negative return on equity of 45.92%. The firm's revenue for the quarter was up 14.5% on a year-over-year basis. During the same period in the prior year, the company posted ($0.21) EPS. Equities research analysts anticipate that JetBlue Airways will post -2.42 earnings per share for the current year.

Insider Activity

In related news, CFO Ursula Hurley sold 77,253 shares of JetBlue Airways stock in a transaction that occurred on Thursday, July 30th. The shares were sold at an average price of $5.76, for a total transaction of $444,977.28. Following the transaction, the chief financial officer directly owned 211,099 shares of the company's stock, valued at $1,215,930.24. This trade represents a 26.79% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 83,253 shares of company stock worth $474,477 in the last 90 days. 2.41% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On JetBlue Airways

Several institutional investors and hedge funds have recently added to or reduced their stakes in JBLU. Cim Investment Management Inc. raised its holdings in JetBlue Airways by 7.3% in the second quarter. Cim Investment Management Inc. now owns 47,282 shares of the transportation company's stock worth $271,000 after purchasing an additional 3,203 shares in the last quarter. The Manufacturers Life Insurance Company grew its position in shares of JetBlue Airways by 15.5% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 157,664 shares of the transportation company's stock worth $903,000 after buying an additional 21,131 shares during the last quarter. WINTON GROUP Ltd grew its position in shares of JetBlue Airways by 95.6% in the 2nd quarter. WINTON GROUP Ltd now owns 553,212 shares of the transportation company's stock worth $3,170,000 after buying an additional 270,358 shares during the last quarter. Engineers Gate Manager LP raised its stake in shares of JetBlue Airways by 1,110.5% during the 2nd quarter. Engineers Gate Manager LP now owns 173,100 shares of the transportation company's stock worth $992,000 after acquiring an additional 158,800 shares in the last quarter. Finally, Integrated Wealth Concepts LLC purchased a new stake in JetBlue Airways during the second quarter valued at approximately $169,000. Hedge funds and other institutional investors own 83.71% of the company's stock.

JetBlue Airways Company Profile

JetBlue Airways Corp. NASDAQ: JBLU is a passenger airline that provides scheduled air transportation in the United States, the Caribbean, Latin America and select destinations in Canada and Europe. The company serves leisure and business travelers through a network centered on major U.S. airports, including New York, Boston, Fort Lauderdale and Orlando.

JetBlue offers multiple travel products, including its core economy service and premium Mint cabins on select routes. Its onboard offerings have included complimentary snacks and beverages, seatback entertainment, Wi-Fi and additional-legroom seating options marketed as Even More Space.

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