JetBlue Airways (NASDAQ:JBLU) Downgraded to Neutral Rating by Seaport Research Partners

Key Points

• Seaport Research Partners downgraded JetBlue Airways from “buy” to “neutral.” Analyst sentiment remains weak overall, with a consensus “Reduce” rating and an average price target of $5.40.
• JetBlue reported a quarterly loss of $0.66 per share, slightly better than expectations, while revenue reached $2.70 billion and increased 14.5% year over year. Analysts expect a full-year loss of approximately $2.21 per share.
• The stock opened at $5.65, near its 50-day average, with a market capitalization of about $2.13 billion; its high debt-to-equity ratio of 5.04 highlights financial leverage concerns. Insiders sold 111,253 shares over the past 90 days, while institutional investors own 83.71% of the stock.

JetBlue Airways (NASDAQ:JBLU - Get Free Report) was downgraded by Seaport Research Partners from a "buy" rating to a "neutral" rating in a research note issued to investors on Monday, MarketBeat reports.

A number of other equities research analysts have also recently commented on the stock. Raymond James Financial reaffirmed an "underperform" rating on shares of JetBlue Airways in a research note on Monday, July 6th. Weiss Ratings reissued a "sell (d-)" rating on shares of JetBlue Airways in a report on Friday, July 17th. Susquehanna raised their price target on shares of JetBlue Airways from $5.00 to $6.00 and gave the company a "neutral" rating in a research report on Tuesday, July 7th. Citigroup cut shares of JetBlue Airways from a "neutral" rating to a "sell" rating and cut their price objective for the company from $6.60 to $5.30 in a report on Friday, August 7th. Finally, The Goldman Sachs Group upped their price objective on shares of JetBlue Airways from $3.50 to $4.50 and gave the stock a "sell" rating in a research report on Thursday, July 2nd. One analyst has rated the stock with a Strong Buy rating, five have issued a Hold rating and six have assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Reduce" and a consensus price target of $5.40.

JetBlue Airways Stock Performance

NASDAQ JBLU opened at $5.65 on Monday. The firm has a market capitalization of $2.13 billion, a P/E ratio of -2.36 and a beta of 1.74. The stock has a 50-day simple moving average of $5.63 and a two-hundred day simple moving average of $5.25. The company has a debt-to-equity ratio of 5.04, a quick ratio of 0.63 and a current ratio of 0.70. JetBlue Airways has a fifty-two week low of $3.87 and a fifty-two week high of $6.62.

JetBlue Airways (NASDAQ:JBLU - Get Free Report) last posted its earnings results on Tuesday, July 28th. The transportation company reported ($0.66) EPS for the quarter, topping the consensus estimate of ($0.69) by $0.03. The firm had revenue of $2.70 billion for the quarter, compared to analyst estimates of $2.69 billion. JetBlue Airways had a negative return on equity of 45.92% and a negative net margin of 9.32%.JetBlue Airways's revenue for the quarter was up 14.5% compared to the same quarter last year. During the same period last year, the company earned ($0.21) earnings per share. On average, equities analysts forecast that JetBlue Airways will post -2.21 earnings per share for the current year.

Insiders Place Their Bets

In other JetBlue Airways news, CFO Ursula L. Hurley sold 77,253 shares of the business's stock in a transaction that occurred on Thursday, July 30th. The stock was sold at an average price of $5.76, for a total transaction of $444,977.28. Following the completion of 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 Securities & Exchange Commission, 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 the stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $5.41, for a total value of $173,120.00. Following the transaction, the director directly owned 35,479 shares of the company's stock, valued at $191,941.39. The trade was a 47.42% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 111,253 shares of company stock valued at $629,597 over the last 90 days. 2.41% of the stock is currently owned by company 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. lifted 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 worth $55,166,000 after purchasing an additional 5,591,470 shares in the last quarter. Bank of America Corp DE purchased a new stake in shares of JetBlue Airways in the second quarter valued at approximately $20,022,000. Deutsche Bank AG increased its holdings in shares of JetBlue Airways by 1,157.9% in the fourth quarter. Deutsche Bank AG now owns 3,356,021 shares of the transportation company's stock valued at $15,270,000 after purchasing an additional 3,089,226 shares during the last quarter. Par Capital Management Inc. increased its holdings in shares of JetBlue Airways by 105.3% in the second quarter. Par Capital Management Inc. now owns 5,487,425 shares of the transportation company's stock valued at $23,212,000 after purchasing an additional 2,814,870 shares during the last quarter. Finally, Primecap Management Co. CA purchased a new position in JetBlue Airways during the second quarter worth approximately $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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