Investors Purchase High Volume of Call Options on United Airlines (NASDAQ:UAL)

Key Points

• Investors showed strong interest in United Airlines by purchasing 124,739 call options, marking an increase of approximately 310% from the typical volume.
• Insider trading activity revealed executives sold a total of 106,791 shares worth nearly $10 million over the last three months, indicating a 24.28% and 15.09% decrease in their positions.
• Wall Street analysts have increased their price targets for United Airlines, with JPMorgan Chase raising it to $149.00, while the consensus rating remains a "Buy".

United Airlines Holdings Inc (NASDAQ:UAL - Get Free Report) was the target of some unusual options trading on Wednesday. Stock traders bought 124,739 call options on the company. This is an increase of approximately 310% compared to the typical volume of 30,397 call options.

Insider Buying and Selling at United Airlines

In other United Airlines news, EVP Torbjorn J. Enqvist sold 20,000 shares of the company's stock in a transaction that occurred on Friday, July 18th. The stock was sold at an average price of $92.22, for a total transaction of $1,844,400.00. Following the transaction, the executive vice president owned 62,358 shares in the company, valued at approximately $5,750,654.76. This represents a 24.28% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Barney Harford sold 15,823 shares of the company's stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $90.03, for a total value of $1,424,544.69. Following the transaction, the director owned 89,000 shares in the company, valued at $8,012,670. This trade represents a 15.09% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 106,791 shares of company stock worth $9,992,318 over the last three months. 0.63% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On United Airlines

Hedge funds and other institutional investors have recently modified their holdings of the company. Bank of New York Mellon Corp lifted its holdings in shares of United Airlines by 1.1% during the 1st quarter. Bank of New York Mellon Corp now owns 1,520,643 shares of the transportation company's stock valued at $105,000,000 after buying an additional 16,477 shares during the period. Harel Insurance Investments & Financial Services Ltd. bought a new position in shares of United Airlines during the 1st quarter valued at $15,089,000. Generate Investment Management Ltd bought a new position in shares of United Airlines during the 1st quarter valued at $10,773,000. Exchange Traded Concepts LLC lifted its holdings in shares of United Airlines by 132.9% during the 1st quarter. Exchange Traded Concepts LLC now owns 7,503 shares of the transportation company's stock valued at $518,000 after buying an additional 4,281 shares during the period. Finally, Sumitomo Mitsui DS Asset Management Company Ltd lifted its holdings in shares of United Airlines by 147.5% during the 1st quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 16,113 shares of the transportation company's stock valued at $1,113,000 after buying an additional 9,604 shares during the period. 69.69% of the stock is owned by institutional investors.

United Airlines Stock Up 0.9%

UAL stock traded up $0.90 during midday trading on Wednesday, hitting $104.05. The company's stock had a trading volume of 9,070,129 shares, compared to its average volume of 7,471,565. The company has a market cap of $33.68 billion, a PE ratio of 10.43, a P/E/G ratio of 1.26 and a beta of 1.45. United Airlines has a 12 month low of $52.00 and a 12 month high of $116.00. The company has a current ratio of 0.70, a quick ratio of 0.65 and a debt-to-equity ratio of 1.56. The firm's 50-day moving average is $100.96 and its 200-day moving average is $85.39.

United Airlines (NASDAQ:UAL - Get Free Report) last released its quarterly earnings data on Wednesday, October 15th. The transportation company reported $2.78 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.65 by $0.13. United Airlines had a return on equity of 30.09% and a net margin of 5.71%. United Airlines has set its Q4 2025 guidance at 3.000-3.500 EPS. On average, equities research analysts forecast that United Airlines will post 12.96 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on UAL shares. JPMorgan Chase & Co. upped their target price on United Airlines from $122.00 to $149.00 and gave the stock an "overweight" rating in a report on Friday, September 12th. Cowen restated a "buy" rating on shares of United Airlines in a research note on Tuesday, July 15th. Evercore ISI upped their price target on United Airlines from $105.00 to $135.00 and gave the stock an "outperform" rating in a research note on Monday, September 29th. Bank of America upped their price target on United Airlines from $90.00 to $108.00 and gave the stock a "buy" rating in a research note on Friday, July 18th. Finally, UBS Group upped their price target on United Airlines from $114.00 to $131.00 and gave the stock a "buy" rating in a research note on Friday, September 26th. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Buy" and a consensus target price of $120.64.

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.

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