Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (VLRS) - What Are Analysts Thinking About This Stock?

Key Points

• Analyst consensus is “Hold”: Of nine brokerages, three rate VLRS a buy, four hold, and two sell. The average 12-month price target is $9.40, above the recent $6.21 share price.
• Recent analyst views are mixed: UBS raised its target to $11 and assigned a buy rating, while JPMorgan and Goldman Sachs lowered their targets to $9.50 and $7.70, respectively, both maintaining neutral ratings.
• Financial performance remains challenging: Volaris missed quarterly EPS expectations, reporting a $1.11 loss versus the expected $1.08 loss, despite revenue exceeding estimates. The company has negative margins, a negative return on equity, and high debt relative to equity.

Shares of Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (NYSE:VLRS - Get Free Report) have been assigned a consensus rating of "Hold" from the nine brokerages that are currently covering the company, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and three have given a buy rating to the company. The average 1 year price objective among brokers that have issued ratings on the stock in the last year is $9.40.

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

Institutional Trading of Controladora Vuela Compania de Aviacion

A number of institutional investors have recently bought and sold shares of the business. Empowered Funds LLC purchased a new position in shares of Controladora Vuela Compania de Aviacion in the 1st quarter valued at about $1,103,000. Diversify Wealth Management LLC purchased a new stake in Controladora Vuela Compania de Aviacion during the first quarter worth approximately $1,279,000. Dorsey Wright & Associates purchased a new stake in Controladora Vuela Compania de Aviacion during the first quarter worth approximately $1,840,000. Bank of America Corp DE boosted its holdings in Controladora Vuela Compania de Aviacion by 55.4% in the first quarter. Bank of America Corp DE now owns 588,981 shares of the transportation company's stock valued at $4,264,000 after purchasing an additional 209,978 shares in the last quarter. Finally, Janney Montgomery Scott LLC acquired a new position in Controladora Vuela Compania de Aviacion in the first quarter valued at approximately $470,000. 53.32% of the stock is owned by hedge funds and other institutional investors.

Controladora Vuela Compania de Aviacion Price Performance

Shares of VLRS opened at $6.21 on Friday. The company has a market cap of $724.67 million, a P/E ratio of -3.79 and a beta of 1.81. Controladora Vuela Compania de Aviacion has a fifty-two week low of $5.79 and a fifty-two week high of $10.80. The company has a quick ratio of 0.64, a current ratio of 0.64 and a debt-to-equity ratio of 6.78. The firm's 50 day moving average price is $6.98 and its 200 day moving average price is $7.52.

Controladora Vuela Compania de Aviacion (NYSE:VLRS - Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The transportation company reported ($1.11) EPS for the quarter, missing the consensus estimate of ($1.08) by ($0.03). The business had revenue of $859.00 million during the quarter, compared to analysts' expectations 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%. On average, research analysts forecast 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 for Volaris, an ultra-low-cost airline headquartered in Mexico. The company provides scheduled passenger air transportation, offering primarily point-to-point flights at affordable fares, along with ancillary services such as baggage, seat selection and other travel-related products.

Volaris began operations in 2006 and has developed an extensive domestic network in Mexico, connecting major cities with leisure and business destinations.

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