Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (NYSE:VLRS) Receives Consensus Rating of "Hold" from Analysts

Key Points

• Analysts maintain a “Hold” consensus on Controladora Vuela, with two sell, four hold and four buy ratings among 10 analysts. The average 12-month price target is $9.73, above the stock’s reported $6.42 price.
• Recent analyst views were mixed: UBS raised its target to $11 and rated the shares “Buy,” while JPMorgan and Goldman Sachs cut their targets and maintained “Neutral” ratings; Jefferies initiated coverage with a “Hold” rating.
• Volaris reported a quarterly loss of $1.11 per share, slightly worse than estimates, despite revenue of $859 million exceeding expectations. The company has weak profitability, including a negative net margin of 5.71% and return on equity of 93.91%.

Shares of Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (NYSE:VLRS - Get Free Report) have been assigned a consensus recommendation of "Hold" from the ten analysts that are covering the company, Marketbeat reports. Two investment analysts have rated the stock with a sell rating, four have assigned a hold rating and four have assigned a buy rating to the company. The average twelve-month price objective among brokerages that have issued a report on the stock in the last year is $9.7250.

A number of research firms have recently issued reports on VLRS. Weiss Ratings downgraded shares of Controladora Vuela Compania de Aviacion from a "sell (d)" rating to a "sell (e+)" rating in a report on Friday, July 31st. JPMorgan Chase & Co. dropped their price target on shares of Controladora Vuela Compania de Aviacion from $10.50 to $9.50 and set a "neutral" rating on the stock in a research report on Friday, June 12th. UBS Group lifted their price objective on shares of Controladora Vuela Compania de Aviacion from $9.00 to $11.00 and gave the company a "buy" rating in a research report on Wednesday, August 5th. The Goldman Sachs Group lowered their price objective on shares of Controladora Vuela Compania de Aviacion from $8.60 to $7.70 and set a "neutral" rating on the stock in a research note on Tuesday, August 11th. Finally, Jefferies Financial Group started coverage on Controladora Vuela Compania de Aviacion in a research report on Thursday, June 18th. They issued a "hold" rating and a $10.00 price objective for the company.

Hedge Funds Weigh In On Controladora Vuela Compania de Aviacion

Large investors have recently made changes to their positions in the company. GAMMA Investing LLC raised its position in shares of Controladora Vuela Compania de Aviacion by 238.7% in the second quarter. GAMMA Investing LLC now owns 3,265 shares of the transportation company's stock valued at $31,000 after buying an additional 2,301 shares in the last quarter. Fourth Sail Capital LP raised its position in Controladora Vuela Compania de Aviacion by 0.4% in the fourth quarter. Fourth Sail Capital LP now owns 757,761 shares of the transportation company's stock valued at $6,729,000 after purchasing an additional 3,277 shares during the last quarter. Confluence Investment Management LLC boosted its stake in shares of Controladora Vuela Compania de Aviacion by 17.3% during the second quarter. Confluence Investment Management LLC now owns 30,676 shares of the transportation company's stock valued at $287,000 after purchasing an additional 4,527 shares in the last quarter. Royal Bank of Canada grew its holdings in shares of Controladora Vuela Compania de Aviacion by 6,204.9% during the first quarter. Royal Bank of Canada now owns 7,755 shares of the transportation company's stock worth $56,000 after purchasing an additional 7,632 shares during the last quarter. Finally, Savant Capital LLC boosted its position in Controladora Vuela Compania de Aviacion by 143.3% during the 4th quarter. Savant Capital LLC now owns 26,177 shares of the transportation company's stock worth $232,000 after buying an additional 15,416 shares during the period. Institutional investors own 53.32% of the company's stock.

Controladora Vuela Compania de Aviacion Price Performance

NYSE VLRS opened at $6.42 on Tuesday. The company has a debt-to-equity ratio of 6.78, a quick ratio of 0.64 and a current ratio of 0.64. The stock has a market cap of $749.15 million, a price-to-earnings ratio of -3.92 and a beta of 1.72. The business has a 50 day simple moving average of $7.52 and a 200 day simple moving average of $7.65. Controladora Vuela Compania de Aviacion has a 52-week low of $5.79 and a 52-week high of $10.80.

Controladora Vuela Compania de Aviacion (NYSE:VLRS - Get Free Report) last released its quarterly earnings results on Wednesday, July 22nd. The transportation company reported ($1.11) earnings per share for the quarter, missing the consensus estimate of ($1.08) by ($0.03). The company had revenue of $859.00 million during the quarter, compared to analyst estimates of $854.70 million. Controladora Vuela Compania de Aviacion had a negative net margin of 5.71% and a negative return on equity of 93.91%. Analysts anticipate that Controladora Vuela Compania de Aviacion will post -2.49 earnings per share for the current fiscal year.

About Controladora Vuela Compania de Aviacion

Controladora Vuela Compañía de Aviación, SAB. de C.V. is the holding company of Volaris, an ultra-low-cost airline based in Mexico. Founded in 2005, Volaris began commercial operations in 2006 and provides scheduled passenger air transportation, with additional revenue from ancillary offerings such as baggage, seat selection and other travel-related services.

Volaris serves a broad network of destinations in Mexico, the United States and Central America. Its operations connect major Mexican cities with U.S.

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