JetBlue Airways (NASDAQ:JBLU) Downgraded by Wall Street Zen to Strong Sell

Key Points

• Wall Street Zen downgraded JetBlue Airways to “strong sell,” adding to largely negative analyst sentiment. MarketBeat reports a consensus “Reduce” rating and an average price target of $5.40.
• JetBlue opened at $4.89, below its 50-day moving average of $5.64, while carrying significant leverage with a debt-to-equity ratio of 5.04. Analysts expect the airline to post a full-year loss of approximately $2.24 per share.
• The company modestly beat quarterly expectations, reporting a $0.66 per-share loss versus the estimated $0.69 loss and revenue of $2.70 billion. However, insiders sold 111,253 shares worth about $629,597 over the past 90 days.

JetBlue Airways (NASDAQ:JBLU - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "sell" rating to a "strong sell" rating in a research note issued to investors on Saturday.

Other equities research analysts also recently issued research reports about the company. Susquehanna lifted their target price on JetBlue Airways from $5.00 to $6.00 and gave the stock a "neutral" rating in a report on Tuesday, July 7th. Citigroup downgraded shares of JetBlue Airways from a "neutral" rating to a "sell" rating and cut their price target for the stock from $6.60 to $5.30 in a report on Friday, August 7th. Bank of America lifted their target price on shares of JetBlue Airways from $3.50 to $4.00 and gave the company an "underperform" rating in a report on Wednesday, July 1st. The Goldman Sachs Group increased their target price on shares of JetBlue Airways from $3.50 to $4.50 and gave the stock a "sell" rating in a research note on Thursday, July 2nd. Finally, Raymond James Financial restated an "underperform" rating on shares of JetBlue Airways in a research report on Monday, July 6th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Hold rating and six have given a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Reduce" and an average target price of $5.40.

JetBlue Airways Price Performance

NASDAQ JBLU opened at $4.89 on Friday. The company has a debt-to-equity ratio of 5.04, a current ratio of 0.70 and a quick ratio of 0.63. The stock's fifty day moving average price is $5.64 and its 200 day moving average price is $5.25. JetBlue Airways has a 1 year low of $3.87 and a 1 year high of $6.62. The company has a market cap of $1.85 billion, a price-to-earnings ratio of -2.05 and a beta of 1.74.

JetBlue Airways (NASDAQ:JBLU - Get Free Report) last issued its quarterly earnings results on Tuesday, July 28th. The transportation company reported ($0.66) EPS for the quarter, topping analysts' consensus estimates of ($0.69) by $0.03. The company had revenue of $2.70 billion during the quarter, compared to analysts' expectations of $2.69 billion. JetBlue Airways had a negative return on equity of 45.92% and a negative net margin of 9.32%.The firm's revenue was up 14.5% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.21) EPS. As a group, equities research analysts forecast that JetBlue Airways will post -2.24 earnings per share for the current year.

Insider Transactions at JetBlue Airways

In related news, CFO Ursula L. Hurley sold 77,253 shares of JetBlue Airways stock in a transaction dated Thursday, July 30th. The stock was sold at an average price of $5.76, for a total value of $444,977.28. Following the sale, the chief financial officer directly owned 211,099 shares in the company, valued at approximately $1,215,930.24. The trade was a 26.79% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Vivek Sharma sold 32,000 shares of JetBlue Airways stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $5.41, for a total value of $173,120.00. Following the completion of the sale, the director owned 35,479 shares in the company, valued at approximately $191,941.39. The trade was a 47.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 111,253 shares of company stock worth $629,597 over the last ninety days. 2.41% of the stock is currently owned by corporate insiders.

Institutional Trading of JetBlue Airways

A number of institutional investors have recently made changes to their positions in the company. Goldman Sachs Group Inc. raised its stake in JetBlue Airways by 85.6% in the 4th quarter. Goldman Sachs Group Inc. now owns 12,124,292 shares of the transportation company's stock valued at $55,166,000 after purchasing an additional 5,591,470 shares during the last quarter. Bank of America Corp DE acquired a new stake in JetBlue Airways during the 2nd quarter worth $20,022,000. Deutsche Bank AG boosted its stake in JetBlue Airways by 1,157.9% during the 4th quarter. Deutsche Bank AG now owns 3,356,021 shares of the transportation company's stock worth $15,270,000 after purchasing an additional 3,089,226 shares during the last quarter. Par Capital Management Inc. grew its holdings in shares of JetBlue Airways by 105.3% during the second quarter. Par Capital Management Inc. now owns 5,487,425 shares of the transportation company's stock worth $23,212,000 after buying an additional 2,814,870 shares in the last quarter. Finally, Primecap Management Co. CA purchased a new stake in shares of JetBlue Airways during the second quarter worth $13,549,000. 83.71% of the stock is owned by institutional investors and hedge funds.

JetBlue Airways Company Profile

JetBlue Airways Corporation is a low-cost scheduled passenger airline headquartered in Long Island City, New York. Since commencing service in 2000, the carrier has built a reputation for combining competitive fares with enhanced onboard amenities, including free in-flight entertainment, complimentary snacks and beverages, and onboard Wi-Fi. JetBlue operates a single fleet type of Airbus A320 family and Embraer 190 aircraft, which supports its focus on efficiency and operational consistency.

The airline's core offerings include economy-class travel and a premium business-class product known as Mint, which features lie-flat seats, curated culinary options and elevated service on select transcontinental and international routes.

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