TD Cowen Has Lowered Expectations for United Airlines (NASDAQ:UAL) Stock Price

Key Points

• TD Cowen cut its United Airlines price target from $192 to $167 but maintained a “buy” rating, implying roughly 49.5% upside from the stock’s prior close.
• United shares recently traded at $111.72, while analysts maintain a “Moderate Buy” consensus rating and an average price target of $157.62. The company also exceeded quarterly earnings and revenue expectations, despite year-over-year EPS declining.
• Institutional investors own 69.69% of United’s shares, with major firms including Primecap Management and State Street adding positions; insiders, however, sold shares worth approximately $26.3 million over the past three months.

United Airlines (NASDAQ:UAL - Get Free Report) had its target price decreased by analysts at TD Cowen from $192.00 to $167.00 in a note issued to investors on Friday, Benzinga reports. The brokerage presently has a "buy" rating on the transportation company's stock. TD Cowen's target price indicates a potential upside of 49.49% from the stock's previous close.

Several other research analysts have also recently commented on the company. UBS Group boosted their price target on United Airlines from $137.00 to $146.00 and gave the stock a "buy" rating in a research note on Thursday, September 24th. Weiss Ratings restated a "hold (c+)" rating on shares of United Airlines in a research note on Friday, July 17th. BMO Capital Markets dropped their price objective on United Airlines from $157.50 to $140.00 and set an "outperform" rating on the stock in a report on Monday. Sanford C. Bernstein upped their target price on United Airlines from $136.00 to $153.00 and gave the company an "outperform" rating in a research report on Wednesday, July 1st. Finally, Wells Fargo & Company increased their target price on United Airlines from $130.00 to $165.00 and gave the company an "overweight" rating in a research note on Tuesday, June 30th. Fifteen investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $157.62.

United Airlines Stock Down 0.1%

Shares of UAL stock traded down $0.07 on Friday, hitting $111.72. The stock had a trading volume of 816,179 shares, compared to its average volume of 5,723,963. The stock's 50 day moving average is $115.83 and its 200-day moving average is $109.50. The firm has a market capitalization of $36.26 billion, a price-to-earnings ratio of 10.43, a P/E/G ratio of 0.92 and a beta of 1.30. United Airlines has a 52-week low of $84.64 and a 52-week high of $138.77. The company has a debt-to-equity ratio of 1.45, a quick ratio of 0.72 and a current ratio of 0.78.

United Airlines (NASDAQ:UAL - Get Free Report) last released its quarterly earnings results on Wednesday, July 15th. The transportation company reported $1.99 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.88 by $0.11. The firm had revenue of $17.67 billion for the quarter, compared to the consensus estimate of $17.62 billion. United Airlines had a net margin of 5.56% and a return on equity of 19.05%. The firm's quarterly revenue was up 16.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $3.87 EPS. United Airlines has set its FY 2026 guidance at 9.000-11.000 EPS. As a group, research analysts expect that United Airlines will post 9.66 earnings per share for the current year.

Insider Buying and Selling at United Airlines

In related news, EVP Andrew Nocella sold 5,000 shares of the stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $117.00, for a total transaction of $585,000.00. Following the sale, the executive vice president owned 214,955 shares in the company, valued at $25,149,735. This represents a 2.27% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Torbjorn Enqvist sold 20,000 shares of the firm's stock in a transaction dated Friday, July 24th. The stock was sold at an average price of $119.91, for a total transaction of $2,398,200.00. Following the completion of the transaction, the executive vice president directly owned 114,800 shares in the company, valued at $13,765,668. This represents a 14.84% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 221,629 shares of company stock valued at $26,328,598 over the last three months. 0.86% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the stock. Primecap Management Co. CA acquired a new position in United Airlines during the 2nd quarter worth $2,238,617,000. State Street Corp raised its stake in shares of United Airlines by 1.4% during the second quarter. State Street Corp now owns 11,788,111 shares of the transportation company's stock valued at $1,603,065,000 after purchasing an additional 162,283 shares in the last quarter. Capital World Investors raised its stake in shares of United Airlines by 0.3% during the fourth quarter. Capital World Investors now owns 7,265,530 shares of the transportation company's stock valued at $812,428,000 after purchasing an additional 22,464 shares in the last quarter. Dimensional Fund Advisors LP lifted its holdings in United Airlines by 3.5% in the first quarter. Dimensional Fund Advisors LP now owns 5,664,538 shares of the transportation company's stock worth $521,330,000 after purchasing an additional 190,017 shares during the period. Finally, Senator Investment Group LP grew its position in United Airlines by 1.1% in the 4th quarter. Senator Investment Group LP now owns 3,128,629 shares of the transportation company's stock valued at $349,843,000 after buying an additional 33,986 shares in the last quarter. 69.69% of the stock is currently owned by institutional investors.

Key United Airlines News

Here are the key news stories impacting United Airlines this week:

• Positive Sentiment: United launched an aggressive status-match campaign targeting elite Delta and American flyers. Matched customers must spend $1,500–$7,000 on eligible United flights within 90 days, creating a near-term revenue opportunity and potentially strengthening United’s premium-cabin and loyalty businesses. United Airlines goes after top frequent flyers at Delta, American with status match
• Positive Sentiment: The campaign is being supported by United’s faster onboard internet, including its Starlink-equipped fleet. The service advantage could help United convert dissatisfied Delta customers and improve retention among lucrative frequent flyers. United is teasing Delta for not having Starlink on its planes
• Positive Sentiment: United’s planned A321XLR aircraft with geared turbofan engines could improve fuel efficiency and support longer, thinner international routes. If execution is successful, the fleet may reinforce the company’s long-term cost and network-efficiency story. Will United’s New A321XLR GTF Advantage Fleet Shift UAL’s Long-Term Efficiency Narrative?

United Airlines Company Profile

United Airlines Holdings, Inc is the parent company of United Airlines, a major U.S. commercial airline. Through its mainline operations and regional partners, United provides scheduled passenger air transportation and air cargo services to destinations across the United States and international markets.

United operates an extensive global network serving North America, Latin America, Europe, Asia, Africa and the Middle East. Its principal hubs include Chicago, Denver, Houston, Los Angeles, Newark, San Francisco and Washington, DC The airline offers multiple classes of service, including United Polaris business class, United First, United Premium Plus, Economy Plus and standard economy.

United traces its history to 1926 and has grown through the consolidation of several aviation businesses.

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.