UBS Group Upgrades JetBlue Airways (NASDAQ:JBLU) to Neutral

Key Points

• UBS Group upgraded JetBlue Airways from “sell” to “neutral,” while lowering its price target from $4.00 to $3.50—still implying about 19.45% upside from the stock’s $2.93 opening price.
• Analyst sentiment remains cautious: JetBlue has an average “Reduce” rating and a consensus price target of $4.98, with nine “Hold” and four “Sell” ratings.
• JetBlue remains financially pressured, reporting a quarterly loss of $0.66 per share, negative margins and return on equity, and a high debt-to-equity ratio of 5.04; analysts expect a full-year loss of $2.68 per share.

JetBlue Airways (NASDAQ:JBLU - Get Free Report) was upgraded by UBS Group from a "sell" rating to a "neutral" rating in a research note issued to investors on Monday, Benzinga reports. The firm currently has a $3.50 target price on the transportation company's stock, down from their prior target price of $4.00. UBS Group's target price would suggest a potential upside of 19.45% from the company's current price.

JBLU has been the topic of a number of other reports. Barclays dropped their price objective 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. The Goldman Sachs Group increased their target price on JetBlue Airways from $3.50 to $4.50 and gave the company a "sell" rating in a research note on Thursday, July 2nd. Bank of America raised their target price on JetBlue Airways from $3.50 to $4.00 and gave the company an "underperform" rating in a report on Wednesday, July 1st. Wall Street Zen downgraded JetBlue Airways from a "sell" rating to a "strong sell" rating in a research report on Saturday, August 22nd. Finally, Citigroup raised JetBlue Airways from a "sell" rating to a "neutral" rating and dropped their price target for the stock from $5.30 to $4.50 in a research report on Tuesday, October 6th. Nine investment analysts have rated the stock with a Hold rating and four have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Reduce" and a consensus price target of $4.98.

JetBlue Airways Stock Performance

NASDAQ:JBLU opened at $2.93 on Monday. The firm has a market capitalization of $1.11 billion, a PE ratio of -1.23 and a beta of 1.77. JetBlue Airways has a 1 year low of $2.91 and a 1 year 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 firm's fifty day simple moving average is $4.49 and its 200 day simple moving average is $5.01.

JetBlue Airways (NASDAQ:JBLU - Get Free Report) last released its earnings results 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. 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 during the quarter, compared to analyst estimates of $2.69 billion. During the same quarter in the previous year, the business earned ($0.21) EPS. The business's revenue was up 14.5% on a year-over-year basis. On average, sell-side analysts anticipate that JetBlue Airways will post -2.68 EPS for the current year.

Insider Activity at JetBlue Airways

In other news, CFO Ursula Hurley sold 77,253 shares of the company's stock in a transaction dated Thursday, July 30th. The shares were 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 of the company's stock, valued at approximately $1,215,930.24. This represents a 26.79% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 83,253 shares of company stock worth $474,477 over the last three months. 2.41% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On JetBlue Airways

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Trust Co. of Vermont acquired a new stake in shares of JetBlue Airways during the 2nd quarter worth approximately $26,000. Northwestern Mutual Wealth Management Co. bought a new stake in shares of JetBlue Airways during the second quarter valued at approximately $27,000. Rockefeller Capital Management L.P. raised 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 valued at $25,000 after purchasing an additional 3,373 shares in the last quarter. Essential Partners LLC raised its stake in shares of JetBlue Airways by 1,048.5% in the first quarter. Essential Partners LLC now owns 7,293 shares of the transportation company's stock valued at $32,000 after purchasing an additional 6,658 shares in the last quarter. Finally, EverSource Wealth Advisors LLC lifted its position in JetBlue Airways by 162.2% in the second quarter. EverSource Wealth Advisors LLC now owns 7,707 shares of the transportation company's stock worth $44,000 after purchasing an additional 4,768 shares during the period. 83.71% of the stock is currently owned by institutional investors.

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.

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