Jet2 (LON:JET2) Board of Directors Approves Stock Repurchase Program

Key Points

• Jet2’s board approved a share repurchase program, signaling management confidence in the stock and a potential effort to support shareholder value through open-market buybacks.
• The shares surged 8.2% on the news, trading at GBX 1,467 after unusually heavy volume well above average.
• Analysts remain broadly positive, with six Buy ratings and one Hold, and a consensus price target of GBX 1,623.86 despite some recent target cuts.

Jet2 (LON:JET2 - Get Free Report) declared that its Board of Directors has initiated a share repurchase plan on Wednesday, July 8th, RTT News reports. The company plans to repurchase 0 outstanding shares. This repurchase authorization permits the company to repurchase shares of its stock through open market purchases. Shares repurchase plans are typically a sign that the company's board of directors believes its stock is undervalued.

Jet2 Stock Up 8.2%

Shares of JET2 stock traded up GBX 111 on Wednesday, reaching GBX 1,467. 57,336,406 shares of the stock were exchanged, compared to its average volume of 3,528,047. The company has a current ratio of 1.40, a quick ratio of 1.49 and a debt-to-equity ratio of 61.57. The business's 50 day moving average price is GBX 1,219.86 and its 200 day moving average price is GBX 1,232.88. The company has a market capitalization of £2.65 billion, a price-to-earnings ratio of 6.26, a PEG ratio of 9.34 and a beta of 1.16. Jet2 has a twelve month low of GBX 980 and a twelve month high of GBX 1,855.

Jet2 (LON:JET2 - Get Free Report) last released its quarterly earnings data on Wednesday, July 8th. The company reported GBX 211.20 earnings per share (EPS) for the quarter. Jet2 had a net margin of 6.11% and a return on equity of 24.73%. As a group, sell-side analysts expect that Jet2 will post 170.9134615 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on JET2 shares. Royal Bank Of Canada lowered their price objective on shares of Jet2 from GBX 2,000 to GBX 1,800 and set an "outperform" rating for the company in a report on Thursday, April 30th. Canaccord Genuity Group decreased their target price on shares of Jet2 from GBX 1,900 to GBX 1,750 and set a "buy" rating on the stock in a research note on Wednesday. Jefferies Financial Group reiterated a "buy" rating and issued a GBX 1,800 price target on shares of Jet2 in a research report on Wednesday, April 29th. Deutsche Bank Aktiengesellschaft decreased their target price on shares of Jet2 from GBX 1,596 to GBX 1,457 and set a "buy" rating for the company in a research report on Friday, March 20th. Finally, JPMorgan Chase & Co. lowered their target price on shares of Jet2 from GBX 1,300 to GBX 1,200 and set a "neutral" rating for the company in a research note on Tuesday, May 5th. Six equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of GBX 1,623.86.

Trending Headlines about Jet2

Here are the key news stories impacting Jet2 this week:

• Positive Sentiment: Jet2 said summer bookings are improving, with demand rising as Middle East tensions ease and peace talks boost consumer confidence in travel demand. UK's Jet2 says summer bookings rise 7% as Middle East tensions ease
• Positive Sentiment: The airline reported record revenues and record passenger numbers, signaling strong operational momentum and healthy trading into the summer season. Jet2 Reports Record Revenues, Sees Strong Summer Demand
• Positive Sentiment: Jet2 launched a £250 million share buyback programme, which can support earnings per share and signals management confidence in the business. Jet2 Launches £250 Million Share Buyback Programme
• Positive Sentiment: The company also highlighted expansion plans, including new routes and growth at Gatwick and other airports, which points to further capacity and revenue growth ahead. Jet2 Delivers Record Passenger Volumes and Unveils £250m Buyback Amid Gatwick Expansion
• Neutral Sentiment: Jet2 issued multiple travel updates and route announcements, reinforcing that bookings and customer activity remain active, but these were mostly informational and not material new financial news. Jet2 issues major Wednesday, July 8 bookings update
• Neutral Sentiment: Canaccord Genuity lowered its price target to GBX 1,750 from GBX 1,900, but kept a “buy” rating, so the note is mixed rather than clearly negative. Broker views

About Jet2

Jet2 plc is a leading leisure travel group, specialising in friendly low fares from its award-winning airline, Jet2.com, and package holidays you can trust from the UK's largest package holiday provider, Jet2holidays. Jet2.com is the UK's third largest airline, flying from 12 UK airports to over 70 destinations across Europe and beyond and Jet2holidays is the UK's largest tour operator.

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