Controladora Vuela Compania de Aviacion (NYSE:VLRS) Cut to Sell at Wall Street Zen

Key Points

• Controladora Vuela Compania de Aviacion has been downgraded by Wall Street Zen from a "hold" to a "sell" rating, reflecting a negative outlook for the stock.
• Analysts have mixed views on the stock, with some firms like UBS raising the price target to $8.00 and maintaining a "buy" rating, while others have cut their targets and ratings.
• The company reported earnings of ($0.54) per share for the last quarter, surpassing estimates, but it continues to face challenges with a negative return on equity.

Controladora Vuela Compania de Aviacion (NYSE:VLRS - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued to investors on Sunday.

A number of other equities analysts also recently issued reports on VLRS. UBS Group increased their price target on Controladora Vuela Compania de Aviacion from $6.00 to $8.00 and gave the stock a "buy" rating in a research report on Thursday, July 31st. The Goldman Sachs Group decreased their price objective on Controladora Vuela Compania de Aviacion from $9.60 to $8.60 and set a "buy" rating for the company in a research note on Tuesday, June 10th. JPMorgan Chase & Co. decreased their price objective on Controladora Vuela Compania de Aviacion from $13.00 to $7.00 and set an "overweight" rating for the company in a research note on Tuesday, May 6th. Citigroup cut Controladora Vuela Compania de Aviacion from a "buy" rating to a "neutral" rating and set a $7.00 price objective for the company. in a research note on Friday. Finally, Morgan Stanley cut Controladora Vuela Compania de Aviacion from an "overweight" rating to an "equal weight" rating and set a $4.40 price objective for the company. in a research note on Tuesday, April 29th. Four investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Controladora Vuela Compania de Aviacion currently has an average rating of "Moderate Buy" and a consensus price target of $7.44.

Controladora Vuela Compania de Aviacion Price Performance

VLRS opened at $5.9150 on Friday. Controladora Vuela Compania de Aviacion has a 12-month low of $3.49 and a 12-month high of $9.00. The company has a current ratio of 0.69, a quick ratio of 0.68 and a debt-to-equity ratio of 1.73. The business's fifty day simple moving average is $5.13 and its 200-day simple moving average is $5.25. The company has a market capitalization of $689.69 million, a price-to-earnings ratio of -21.91 and a beta of 2.15.

Controladora Vuela Compania de Aviacion (NYSE:VLRS - Get Free Report) last posted its quarterly earnings results on Monday, July 21st. The transportation company reported ($0.54) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.75) by $0.21. Controladora Vuela Compania de Aviacion had a negative return on equity of 9.89% and a negative net margin of 1.03%.The business had revenue of $693.00 million for the quarter, compared to the consensus estimate of $664.01 million. During the same quarter in the prior year, the company earned $0.09 EPS. On average, equities research analysts anticipate that Controladora Vuela Compania de Aviacion will post 1.21 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Controladora Vuela Compania de Aviacion

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Ancient Art L.P. raised its stake in Controladora Vuela Compania de Aviacion by 22.2% in the first quarter. Ancient Art L.P. now owns 1,816,225 shares of the transportation company's stock valued at $9,481,000 after buying an additional 329,496 shares during the last quarter. AQR Capital Management LLC raised its stake in Controladora Vuela Compania de Aviacion by 322.5% in the first quarter. AQR Capital Management LLC now owns 1,280,268 shares of the transportation company's stock valued at $6,683,000 after buying an additional 977,249 shares during the last quarter. Acadian Asset Management LLC raised its stake in Controladora Vuela Compania de Aviacion by 5.9% in the first quarter. Acadian Asset Management LLC now owns 1,268,133 shares of the transportation company's stock valued at $6,610,000 after buying an additional 71,163 shares during the last quarter. Wellington Management Group LLP purchased a new stake in Controladora Vuela Compania de Aviacion in the first quarter valued at about $3,312,000. Finally, Mackenzie Financial Corp purchased a new stake in Controladora Vuela Compania de Aviacion in the fourth quarter valued at about $4,550,000. 53.32% of the stock is currently owned by hedge funds and other institutional investors.

Controladora Vuela Compania de Aviacion Company Profile

Controladora Vuela Compañía de Aviación, SAB. de C.V., through its subsidiary, Concesionaria Vuela Compañía de Aviación, SAP.I. de C.V., provides air transportation services for passengers, cargo, and mail in Mexico and internationally. The company operates approximately 590 daily flights on routes connecting 43 cities in Mexico, 22 cities in the United States, 4 cities in Central America, and 2 cities in South America.

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