United Airlines (NASDAQ:UAL) Stock Gets Price Target Cut from Argus

Key Points

• Argus lowered United Airlines’ price target from $140 to $125 but maintained a “buy” rating, implying 22.4% upside from the prior close.
• United’s stock rose 0.4% to $102.13, while analysts maintained a broadly positive view: 16 rate it a Buy, with a consensus rating of “Moderate Buy” and an average target of $156.81.
• Quarterly EPS of $2.54 slightly missed estimates and declined year over year, as elevated fuel costs pressured profitability despite revenue rising 17.4% to $17.88 billion.

United Airlines (NASDAQ:UAL - Get Free Report) had its target price cut by equities research analysts at Argus from $140.00 to $125.00 in a report issued on Thursday, Benzinga reports. The firm currently has a "buy" rating on the transportation company's stock. Argus' price objective would indicate a potential upside of 22.40% from the company's previous close.

Other equities research analysts also recently issued research reports about the company. TD Cowen cut their price target on United Airlines from $192.00 to $167.00 and set a "buy" rating for the company in a report on Friday, October 2nd. The Goldman Sachs Group lifted their price objective on United Airlines from $131.00 to $162.00 and gave the company a "buy" rating in a report on Thursday, July 2nd. BMO Capital Markets dropped their target price on shares of United Airlines from $157.50 to $140.00 and set an "outperform" rating for the company in a research report on Monday, September 28th. Bank of America upped their price target on shares of United Airlines from $145.00 to $150.00 and gave the stock a "buy" rating in a report on Wednesday, July 1st. Finally, UBS Group cut their price target on shares of United Airlines from $146.00 to $139.00 and set a "buy" rating for the company in a report on Friday, October 16th. Sixteen investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, United Airlines currently has a consensus rating of "Moderate Buy" and a consensus target price of $156.81.

United Airlines Stock Up 0.4%

United Airlines stock traded up $0.46 during midday trading on Thursday, reaching $102.13. The stock had a trading volume of 1,701,896 shares, compared to its average volume of 5,702,400. The stock has a market capitalization of $33.15 billion, a P/E ratio of 9.32, a price-to-earnings-growth ratio of 1.13 and a beta of 1.30. The firm's fifty day simple moving average is $109.91 and its 200-day simple moving average is $110.71. 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 has a 1-year low of $84.64 and a 1-year high of $138.77.

United Airlines (NASDAQ:UAL - Get Free Report) last posted its quarterly earnings data on Tuesday, October 20th. The transportation company reported $2.54 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.57 by ($0.03). The business had revenue of $17.88 billion during the quarter, compared to analyst estimates of $17.89 billion. United Airlines had a net margin of 5.46% and a return on equity of 18.09%. United Airlines's revenue for the quarter was up 17.4% on a year-over-year basis. During the same quarter last year, the business earned $2.78 earnings per share. As a group, analysts expect that United Airlines will post 7.87 EPS for the current fiscal year.

Insider Transactions at United Airlines

In other United Airlines news, EVP Torbjorn J. Enqvist sold 20,000 shares of the stock in a transaction that occurred on Friday, July 24th. The stock was sold at an average price of $119.91, for a total value of $2,398,200.00. Following the transaction, the executive vice president owned 114,800 shares in the company, valued at approximately $13,765,668. This represents a 14.84% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Andrew P. Nocella sold 5,000 shares of the stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $117.00, for a total value of $585,000.00. Following the completion of the transaction, the executive vice president owned 214,955 shares in the company, valued at approximately $25,149,735. This represents a 2.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 62,308 shares of company stock valued at $7,520,754 in the last 90 days. 0.86% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the business. Dunhill Financial LLC bought a new position in United Airlines during the second quarter valued at $25,000. Western Wealth Management LLC bought a new position in United Airlines in the 1st quarter valued at $27,000. Elevation Wealth Partners LLC grew its holdings in shares of United Airlines by 393.0% during the second quarter. Elevation Wealth Partners LLC now owns 212 shares of the transportation company's stock worth $29,000 after purchasing an additional 169 shares in the last quarter. Trust Co. of Vermont bought a new stake in United Airlines in the 2nd quarter worth approximately $29,000. Finally, Rakuten Securities Inc. purchased a new position in shares of United Airlines during the second quarter worth approximately $32,000. 69.69% of the stock is currently owned by institutional investors and hedge funds.

More United Airlines News

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

• Positive Sentiment: Strong revenue and demand outlook: United reported third-quarter revenue of approximately $17.9 billion, up 17.4% year over year, and expects fourth-quarter revenue growth to exceed 20%. High passenger demand, strong load factors and continued customer spending helped outweigh concerns about profitability. United Airlines stock trades up
• Positive Sentiment: Analyst remains constructive: Susquehanna lowered its UAL price target from $150 to $130 but maintained a positive rating, implying substantial upside from the stock’s reference price. The target cut reflects higher fuel costs rather than a change in the firm’s longer-term view. United Airlines analyst price target
• Neutral Sentiment: Premium strategy and infrastructure investment: Management is targeting double-digit margins by expanding premium travel offerings. United also plans to open an 800-seat lounge at Houston’s George Bush Intercontinental Airport, supporting its premium-brand strategy but adding significant capital and operating costs. United Airlines targets double-digit margins
• Neutral Sentiment: Liquidity and fleet developments: United increased its revolving credit facility from $3 billion to $5 billion, improving financial flexibility. FAA certification of Boeing’s 737 MAX 10 could also help resolve delivery delays for aircraft ordered by United, although the benefits are longer term. United Airlines liquidity update
• Negative Sentiment: Fuel costs are pressuring earnings: Third-quarter adjusted EPS of $2.54 fell short of estimates and declined from $2.78 a year earlier. United’s fourth-quarter EPS guidance of $0.50–$1.50 is well below the $1.81 consensus estimate, while management expects elevated fuel costs and margin challenges to persist into 2027. United Airlines forecasts fourth-quarter profit below estimates
• Negative Sentiment: Reputational and political distractions: CEO Scott Kirby’s support for a wealth tax has drawn criticism because of his compensation and could create negative publicity, though the direct financial impact on UAL appears limited. United Airlines CEO wealth tax comments

About United Airlines

United Airlines Holdings, Inc is the parent company of United Airlines, a major U.S. commercial airline headquartered in Chicago, Illinois. The company provides scheduled passenger air transportation and air cargo services, connecting customers across the United States and to international destinations.

United operates a broad network serving North America, Latin America, Europe, Asia, Africa and Oceania. Its operations are supported by hubs in major U.S. cities, including Chicago, Denver, Houston, Los Angeles, Newark, San Francisco and Washington, DC, as well as an extensive network of regional carriers operating under the United Express brand.

The company offers several travel classes and related services, including premium-cabin seating, onboard amenities, airport lounges and the MileagePlus customer loyalty program.

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