Encompass Capital Advisors LLC Invests $41.43 Million in United Airlines Holdings Inc $UAL

Key Points

• Encompass Capital Advisors LLC has purchased a new stake in United Airlines, acquiring 600,000 shares valued at approximately $41.43 million, now making the stock 1.6% of its portfolio.
• Brokerages have varying ratings for United Airlines, with TD Cowen raising its target price from $101 to $127, while Wall Street Zen downgraded it from "buy" to "hold".
• Insiders have recently sold a significant number of shares, with EVP Torbjorn J. Enqvist selling 20,000 shares valued at $1.84 million, and over the last ninety days, insiders have sold approximately 106,791 shares total.

Encompass Capital Advisors LLC purchased a new position in United Airlines Holdings Inc (NASDAQ:UAL - Free Report) during the first quarter, according to its most recent Form 13F filing with the SEC. The fund purchased 600,000 shares of the transportation company's stock, valued at approximately $41,430,000. United Airlines makes up about 1.6% of Encompass Capital Advisors LLC's investment portfolio, making the stock its 27th biggest holding. Encompass Capital Advisors LLC owned about 0.18% of United Airlines as of its most recent filing with the SEC.

A number of other hedge funds have also recently made changes to their positions in the stock. BW Gestao de Investimentos Ltda. bought a new stake in shares of United Airlines in the 1st quarter worth approximately $787,000. Bwcp LP boosted its position in shares of United Airlines by 13.7% in the 1st quarter. Bwcp LP now owns 356,223 shares of the transportation company's stock worth $24,597,000 after purchasing an additional 42,833 shares in the last quarter. Banque Transatlantique SA bought a new stake in shares of United Airlines in the 1st quarter worth approximately $35,000. AQR Capital Management LLC boosted its position in shares of United Airlines by 334.6% in the 1st quarter. AQR Capital Management LLC now owns 1,793,454 shares of the transportation company's stock worth $116,539,000 after purchasing an additional 1,380,804 shares in the last quarter. Finally, Amundi boosted its position in shares of United Airlines by 3.6% in the 1st quarter. Amundi now owns 423,257 shares of the transportation company's stock worth $29,226,000 after purchasing an additional 14,762 shares in the last quarter. 69.69% of the stock is owned by institutional investors.

United Airlines Stock Performance

UAL traded up $0.54 during mid-day trading on Friday, reaching $106.59. 3,634,117 shares of the company traded hands, compared to its average volume of 4,646,877. The stock has a market capitalization of $34.51 billion, a P/E ratio of 10.68, a P/E/G ratio of 1.38 and a beta of 1.47. The company has a quick ratio of 0.65, a current ratio of 0.70 and a debt-to-equity ratio of 1.56. The company's fifty day moving average price is $93.14 and its 200-day moving average price is $81.87. United Airlines Holdings Inc has a 52-week low of $44.85 and a 52-week high of $116.00.

United Airlines (NASDAQ:UAL - Get Free Report) last announced its earnings results on Wednesday, July 16th. The transportation company reported $3.87 earnings per share for the quarter, beating analysts' consensus estimates of $3.81 by $0.06. The business had revenue of $15.24 billion during the quarter, compared to analyst estimates of $15.31 billion. United Airlines had a net margin of 5.71% and a return on equity of 30.09%. The company's quarterly revenue was up 1.4% compared to the same quarter last year. During the same period in the previous year, the business earned $4.14 EPS. United Airlines has set its FY 2025 guidance at 9.000-11.000 EPS. On average, sell-side analysts expect that United Airlines Holdings Inc will post 12.96 EPS for the current year.

Analyst Ratings Changes

A number of analysts have recently commented on the company. UBS Group boosted their price target on United Airlines from $103.00 to $114.00 and gave the stock a "buy" rating in a research report on Tuesday, July 15th. Cowen restated a "buy" rating on shares of United Airlines in a report on Tuesday, July 15th. TD Cowen boosted their price objective on shares of United Airlines from $101.00 to $127.00 and gave the stock a "buy" rating in a report on Monday, July 21st. Evercore ISI restated an "outperform" rating and issued a $105.00 price objective on shares of United Airlines in a report on Thursday, July 17th. Finally, Wall Street Zen lowered shares of United Airlines from a "buy" rating to a "hold" rating in a report on Friday, July 18th. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus target price of $111.43.

Insider Buying and Selling at United Airlines

In other United Airlines news, EVP Torbjorn J. Enqvist sold 20,000 shares of the business's stock in a transaction on Friday, July 18th. The shares were sold at an average price of $92.22, for a total transaction of $1,844,400.00. Following the completion of the sale, the executive vice president directly owned 62,358 shares in the company, valued at approximately $5,750,654.76. The trade was a 24.28% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Barney Harford sold 9,000 shares of the business's stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $97.76, for a total transaction of $879,840.00. Following the sale, the director owned 80,000 shares of the company's stock, valued at approximately $7,820,800. This represents a 10.11% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 106,791 shares of company stock worth $9,992,318. 0.71% of the stock is owned by corporate insiders.

About United Airlines

United Airlines Holdings, Inc, through its subsidiaries, provides air transportation services in North America, Asia, Europe, Africa, the Pacific, the Middle East, and Latin America. The company transports people and cargo through its mainline and regional fleets. It also offers catering, ground handling, flight academy, and maintenance services for third parties.