JetBlue Airways Corporation (JBLU) - What Are Brokerages Saying About This Stock?

Key Points

• Analysts remain cautious on JetBlue: Thirteen firms give the stock a consensus “Reduce” rating, including five sells and eight holds, with an average 12-month price target of $5.02.
• JBLU shares fell 5.7% to $3.62, matching the reported 12-month low. The airline has significant leverage, with a debt-to-equity ratio of 5.04, and analysts expect a full-year loss of $2.68 per share.
• JetBlue’s latest quarterly revenue rose 14.5% year over year to $2.70 billion, while its adjusted loss of $0.66 per share modestly beat estimates. Institutional investors own 83.71% of the stock, but insiders have recently sold shares, including a 77,253-share sale by the CFO.

Shares of JetBlue Airways Corporation (NASDAQ:JBLU - Get Free Report) have been assigned a consensus rating of "Reduce" from the thirteen ratings firms that are covering the company, Marketbeat Ratings reports. Five research analysts have rated the stock with a sell rating and eight have issued a hold rating on the company. The average 1-year price objective among brokerages that have issued ratings on the stock in the last year is $5.02.

JBLU has been the topic of a number of research analyst reports. Barclays lowered their price target on JetBlue Airways from $7.00 to $5.00 and set an "equal weight" rating on the stock in a report on Friday, September 11th. BMO Capital Markets reduced their price objective on shares of JetBlue Airways from $6.75 to $5.25 and set a "market perform" rating for the company in a report on Monday, September 28th. Bank of America increased their target price on shares of JetBlue Airways from $3.50 to $4.00 and gave the company an "underperform" rating in a research report on Wednesday, July 1st. UBS Group decreased their target price on shares of JetBlue Airways from $5.00 to $4.00 and set a "sell" rating for the company in a research report on Thursday, September 10th. Finally, Raymond James Financial reissued an "underperform" rating on shares of JetBlue Airways in a research note on Monday, July 6th.

Insider Buying and Selling at JetBlue Airways

In other news, CFO Ursula Hurley sold 77,253 shares of the stock in a transaction that occurred on Thursday, July 30th. The shares were sold at an average price of $5.76, for a total value of $444,977.28. Following the completion of the transaction, the chief financial officer directly owned 211,099 shares in the company, valued at $1,215,930.24. This trade represents a 26.79% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 83,253 shares of company stock valued at $474,477. Corporate insiders own 2.41% of the company's stock.

Institutional Investors Weigh In On JetBlue Airways

Several hedge funds and other institutional investors have recently added to or reduced their stakes in JBLU. Bank of America Corp DE acquired a new stake in JetBlue Airways in the second quarter worth approximately $20,022,000. Primecap Management Co. CA acquired a new position in shares of JetBlue Airways during the 2nd quarter valued at $13,549,000. Bank of New York Mellon Corp acquired a new position in shares of JetBlue Airways during the 2nd quarter valued at $11,336,000. Connor Clark & Lunn Investment Management Ltd. acquired a new position in shares of JetBlue Airways during the 2nd quarter valued at $10,748,000. Finally, Renaissance Technologies LLC raised its stake in shares of JetBlue Airways by 235.9% in the 1st quarter. Renaissance Technologies LLC now owns 2,246,200 shares of the transportation company's stock worth $9,928,000 after buying an additional 1,577,500 shares in the last quarter. Institutional investors own 83.71% of the company's stock.

JetBlue Airways Stock Down 5.7%

JBLU opened at $3.62 on Tuesday. JetBlue Airways has a 12 month low of $3.62 and a 12 month high of $6.62. The company has a debt-to-equity ratio of 5.04, a current ratio of 0.70 and a quick ratio of 0.63. The stock has a market cap of $1.37 billion, a P/E ratio of -1.51 and a beta of 1.77. The stock's 50 day moving average price is $4.74 and its 200 day moving average price is $5.05.

JetBlue Airways (NASDAQ:JBLU - Get Free Report) last announced its earnings results on Tuesday, July 28th. The transportation company reported ($0.66) earnings per share for the quarter, beating the consensus estimate of ($0.69) by $0.03. JetBlue Airways had a negative return on equity of 45.92% and a negative net margin of 9.32%. The firm had revenue of $2.70 billion for the quarter, compared to the consensus estimate of $2.69 billion. During the same quarter in the previous year, the business earned ($0.21) EPS. The firm's revenue for the quarter was up 14.5% on a year-over-year basis. As a group, research analysts predict that JetBlue Airways will post -2.68 earnings per share for the current year.

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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