Controladora Vuela Compania de Aviacion (NYSE:VLRS) Price Target Lowered to $7.70 at The Goldman Sachs Group

Key Points

• Goldman Sachs lowered its price target for Controladora Vuela Compania de Aviacion from $8.60 to $7.70 while maintaining a “neutral” rating, implying 2.72% downside from the prior close.
• Analyst sentiment remains mixed, with four Buy, five Hold, and two Sell ratings; the consensus rating is “Hold” with an average price target of $9.42.
• Volaris reported a quarterly loss of $1.11 per share, slightly worse than estimates, despite revenue of $859 million exceeding forecasts. The company faces weak profitability, including a negative 5.71% net margin and 93.91% negative return on equity.

Controladora Vuela Compania de Aviacion (NYSE:VLRS - Get Free Report) had its price target cut by analysts at The Goldman Sachs Group from $8.60 to $7.70 in a report released on Tuesday,Benzinga reports. The firm currently has a "neutral" rating on the transportation company's stock. The Goldman Sachs Group's price target points to a potential downside of 2.72% from the stock's previous close.

A number of other equities research analysts have also commented on VLRS. Jefferies Financial Group assumed coverage on Controladora Vuela Compania de Aviacion in a research report on Thursday, June 18th. They set a "hold" rating and a $10.00 price objective for the company. Weiss Ratings lowered shares of Controladora Vuela Compania de Aviacion from a "sell (d)" rating to a "sell (e+)" rating in a research note on Friday, July 31st. Barclays decreased their target price on shares of Controladora Vuela Compania de Aviacion from $10.00 to $9.00 and set an "overweight" rating for the company in a research note on Thursday, April 30th. 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 note on Friday, June 12th. Finally, UBS Group lifted their price objective on 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. Four analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $9.42.

Controladora Vuela Compania de Aviacion Stock Performance

Shares of NYSE:VLRS traded down $0.14 during trading hours on Tuesday, hitting $7.92. The stock had a trading volume of 147,103 shares, compared to its average volume of 689,220. The stock's fifty day simple moving average is $8.30 and its 200 day simple moving average is $8.16. The firm has a market capitalization of $922.89 million, a price-to-earnings ratio of -4.82 and a beta of 1.72. The company has a debt-to-equity ratio of 6.78, a quick ratio of 0.64 and a current ratio of 0.64. Controladora Vuela Compania de Aviacion has a 1-year low of $5.68 and a 1-year high of $10.80.

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 analysts' consensus estimates of ($1.08) by ($0.03). The business had revenue of $859.00 million for 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%. Sell-side analysts anticipate that Controladora Vuela Compania de Aviacion will post -2.19 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Controladora Vuela Compania de Aviacion news, Director William Dean Donovan sold 50,000 shares of the company's stock in a transaction on Wednesday, May 27th. The stock was sold at an average price of $7.54, for a total value of $377,000.00. Following the sale, the director directly owned 2,946,050 shares in the company, valued at $22,213,217. This represents a 1.67% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Wellington Management Group LLP increased its stake in Controladora Vuela Compania de Aviacion by 2.6% during the 4th quarter. Wellington Management Group LLP now owns 5,053,229 shares of the transportation company's stock worth $44,873,000 after purchasing an additional 128,088 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Controladora Vuela Compania de Aviacion by 48.9% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,720,522 shares of the transportation company's stock valued at $12,353,000 after buying an additional 565,250 shares during the last quarter. Thomist Capital Management LP increased its stake in shares of Controladora Vuela Compania de Aviacion by 3.9% during the 4th quarter. Thomist Capital Management LP now owns 1,009,652 shares of the transportation company's stock worth $8,916,000 after purchasing an additional 37,457 shares during the last quarter. Millennium Management LLC lifted its holdings in Controladora Vuela Compania de Aviacion by 126.5% during the 4th quarter. Millennium Management LLC now owns 990,495 shares of the transportation company's stock valued at $8,796,000 after purchasing an additional 553,251 shares during the last quarter. Finally, Fourth Sail Capital LP increased its stake in shares of Controladora Vuela Compania de Aviacion by 0.4% during the fourth quarter. Fourth Sail Capital LP now owns 757,761 shares of the transportation company's stock worth $6,729,000 after purchasing an additional 3,277 shares during the period. Institutional investors own 53.32% of the company's stock.

About Controladora Vuela Compania de Aviacion

Controladora Vuela Compañia de Aviacion, SAB de CV NYSE: VLRS is a Mexico-based airline holding company whose primary business is the operation of low-cost scheduled air transportation services. Through its principal operating subsidiary, Volaris, the company provides passenger and cargo flights on domestic and international routes. Its business model emphasizes unbundled ancillary services and point-to-point operations designed to offer competitive fares across its network.

Volaris serves more than 120 routes linking major metropolitan areas and secondary cities in Mexico, the United States and Central America.

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