JetBlue Airways (NASDAQ:JBLU) Price Target Cut to $5.00 by Analysts at TD Cowen

Key Points

• TD Cowen cut JetBlue’s price target from $6.00 to $5.00 while maintaining a “hold” rating, implying only 1.73% upside from the stock’s $4.92 price.
• Analyst sentiment remains cautious: six analysts rate the shares “hold” and six rate them “sell,” resulting in a consensus “Reduce” rating and average price target of $5.50.
• JetBlue reported a quarterly loss of $0.66 per share, slightly better than expectations, with revenue of $2.70 billion; however, the company continues to show negative profitability and high leverage, including a 5.04 debt-to-equity ratio.

JetBlue Airways (NASDAQ:JBLU - Get Free Report) had its price objective cut by stock analysts at TD Cowen from $6.00 to $5.00 in a report released on Monday,Benzinga reports. The firm presently has a "hold" rating on the transportation company's stock. TD Cowen's price target points to a potential upside of 1.73% from the company's current price.

Other analysts have also issued reports about the stock. Weiss Ratings restated a "sell (d-)" rating on shares of JetBlue Airways in a report on Friday, July 17th. Seaport Research Partners lowered JetBlue Airways from a "buy" rating to a "neutral" rating in a research report on Monday, August 17th. Bank of America increased their target price on JetBlue Airways from $3.50 to $4.00 and gave the stock an "underperform" rating in a research report on Wednesday, July 1st. BMO Capital Markets raised their target price on JetBlue Airways from $6.00 to $6.75 and gave the company a "market perform" rating in a research note on Wednesday, July 29th. Finally, The Goldman Sachs Group lifted their price target on JetBlue Airways from $3.50 to $4.50 and gave the company a "sell" rating in a research report on Thursday, July 2nd. Six analysts have rated the stock with a Hold rating and six have given a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Reduce" and an average price target of $5.50.

JetBlue Airways Trading Up 0.5%

Shares of NASDAQ:JBLU traded up $0.03 on Monday, hitting $4.92. The company had a trading volume of 5,296,406 shares, compared to its average volume of 26,878,297. The firm's 50-day simple moving average is $5.64 and its two-hundred day simple moving average 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 quick ratio of 0.63, a current ratio of 0.70 and a debt-to-equity ratio of 5.04. The firm has a market capitalization of $1.85 billion, a price-to-earnings ratio of -2.06 and a beta of 1.74.

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

Insider Activity

In related news, CFO Ursula L. Hurley sold 77,253 shares of the business's stock in a transaction dated Thursday, July 30th. The shares were sold at an average price of $5.76, for a total transaction of $444,977.28. Following the sale, the chief financial officer owned 211,099 shares of the company's stock, valued at $1,215,930.24. The trade was a 26.79% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Vivek Sharma sold 32,000 shares of the company's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $5.41, for a total transaction 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. This trade represents 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 worth $629,597 in the last three months. 2.41% of the stock is currently owned by insiders.

Institutional Trading of JetBlue Airways

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Rockefeller Capital Management L.P. boosted its holdings in JetBlue Airways by 157.3% in the fourth quarter. Rockefeller Capital Management L.P. now owns 5,517 shares of the transportation company's stock worth $25,000 after acquiring an additional 3,373 shares in the last quarter. Trust Co. of Vermont bought a new position in shares of JetBlue Airways during the second quarter valued at $26,000. Northwestern Mutual Wealth Management Co. bought a new position in shares of JetBlue Airways during the second quarter valued at $27,000. Caitong International Asset Management Co. Ltd raised its position in shares of JetBlue Airways by 639.1% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 5,839 shares of the transportation company's stock worth $29,000 after purchasing an additional 5,049 shares during the last quarter. Finally, Kestra Advisory Services LLC purchased a new position in shares of JetBlue Airways in the 4th quarter worth about $30,000. Hedge funds and other institutional investors own 83.71% of the company's stock.

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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