Susquehanna Issues Pessimistic Forecast for JetBlue Airways (NASDAQ:JBLU) Stock Price

Key Points

• Susquehanna cut JetBlue’s price target from $6 to $4 while maintaining a “neutral” rating, reflecting a cautious outlook for the airline’s stock.
• Analyst sentiment is broadly negative: JetBlue has an average “Reduce” rating and a consensus price target of $5.02, with eight Hold and five Sell ratings.
• JetBlue reported a quarterly loss of $0.66 per share, though it narrowly beat estimates and revenue rose 14.5% year over year; analysts expect a full-year loss of $2.42 per share.

JetBlue Airways (NASDAQ:JBLU - Get Free Report) had its price objective cut by equities research analysts at Susquehanna from $6.00 to $4.00 in a research report issued on Wednesday, Benzinga reports. The firm presently has a "neutral" rating on the transportation company's stock. Susquehanna's price target would indicate a potential downside of 0.74% from the company's current price.

A number of other analysts also recently issued reports on the company. TD Cowen lowered their target price on JetBlue Airways from $6.00 to $5.00 and set a "hold" rating on the stock in a research report on Monday, August 24th. UBS Group decreased their price target on JetBlue Airways from $5.00 to $4.00 and set a "sell" rating for the company in a research note on Thursday, September 10th. Raymond James Financial reiterated an "underperform" rating on shares of JetBlue Airways in a research note on Monday, July 6th. Weiss Ratings reissued a "sell (d-)" rating on shares of JetBlue Airways in a report on Friday, July 17th. Finally, Wall Street Zen downgraded JetBlue Airways from a "sell" rating to a "strong sell" rating in a report on Saturday, August 22nd. Eight investment analysts have rated the stock with a Hold rating and five have given a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Reduce" and an average target price of $5.02.

JetBlue Airways Stock Performance

Shares of JBLU opened at $4.03 on Wednesday. The stock has a market capitalization of $1.52 billion, a price-to-earnings ratio of -1.69 and a beta of 1.77. JetBlue Airways has a 12 month low of $3.87 and a 12 month high of $6.62. The firm has a fifty day simple moving average of $4.91 and a 200 day simple moving average of $5.06. The company has a current ratio of 0.70, a quick ratio of 0.63 and a debt-to-equity ratio of 5.04.

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

Insider Buying and Selling

In related news, CFO Ursula Hurley sold 77,253 shares of JetBlue Airways stock in a transaction dated Thursday, July 30th. The stock was sold at an average price of $5.76, for a total transaction of $444,977.28. Following the completion of the transaction, the chief financial officer owned 211,099 shares in the company, valued at approximately $1,215,930.24. This trade represents a 26.79% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 83,253 shares of company stock worth $474,477 in the last three months. Company insiders own 2.41% of the company's stock.

Institutional Trading of JetBlue Airways

A number of hedge funds have recently made changes to their positions in the business. Cim Investment Management Inc. lifted its stake in shares of JetBlue Airways by 7.3% in the 2nd quarter. Cim Investment Management Inc. now owns 47,282 shares of the transportation company's stock valued at $271,000 after acquiring an additional 3,203 shares during the last quarter. Amundi boosted its stake in shares of JetBlue Airways by 8.9% during the first quarter. Amundi now owns 39,447 shares of the transportation company's stock valued at $174,000 after purchasing an additional 3,238 shares during the period. Rockefeller Capital Management L.P. increased its stake in shares of JetBlue Airways by 157.3% in the fourth quarter. Rockefeller Capital Management L.P. now owns 5,517 shares of the transportation company's stock worth $25,000 after buying an additional 3,373 shares during the period. Kestra Advisory Services LLC raised its holdings in JetBlue Airways by 62.1% during the 1st quarter. Kestra Advisory Services LLC now owns 10,809 shares of the transportation company's stock valued at $48,000 after buying an additional 4,142 shares during the last quarter. Finally, Trust Co. of Vermont bought a new stake in JetBlue Airways during the 2nd quarter valued at $26,000. 83.71% of the stock is owned by institutional investors and hedge funds.

About JetBlue Airways

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.