JetBlue Airways (NASDAQ:JBLU) Rating Lowered to "Sell" at Citigroup

Key Points

• Citigroup downgraded JetBlue Airways to “Sell” from “Neutral” and set a $5.30 price target, implying 14.38% downside from the prior close.
• Analyst sentiment is broadly negative: JetBlue has a consensus “Reduce” rating, with six “Sell,” five “Hold,” and one “Strong Buy” recommendation; the average price target is $5.40.
• JetBlue reported a quarterly loss of $0.66 per share, slightly better than estimates, alongside $2.70 billion in revenue. However, the company remains unprofitable, with a negative 9.32% net margin and debt-to-equity ratio of 5.04.

JetBlue Airways (NASDAQ:JBLU - Get Free Report) was downgraded by analysts at Citigroup from a "neutral" rating to a "sell" rating in a research report issued to clients and investors on Friday, MarketBeat.com reports. They presently have a $5.30 price objective on the transportation company's stock. Citigroup's price target indicates a potential downside of 14.38% from the stock's previous close.

Several other brokerages also recently issued reports on JBLU. Raymond James Financial reissued an "underperform" rating on shares of JetBlue Airways in a research note on Monday, July 6th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of JetBlue Airways in a research note on Friday, July 17th. Bank of America boosted their price target on JetBlue Airways from $3.50 to $4.00 and gave the company an "underperform" rating in a report on Wednesday, July 1st. Wall Street Zen raised JetBlue Airways from a "strong sell" rating to a "sell" rating in a research note on Saturday, May 23rd. Finally, BMO Capital Markets raised their price objective on JetBlue Airways from $6.00 to $6.75 and gave the stock a "market perform" rating in a report on Wednesday, July 29th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Hold rating and six have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Reduce" and an average price target of $5.40.

JetBlue Airways Trading Down 2.7%

Shares of JBLU stock opened at $6.19 on Friday. The firm has a 50-day moving average price of $5.53 and a 200 day moving average price of $5.23. JetBlue Airways has a twelve month low of $3.87 and a twelve month high of $6.62. The company has a market capitalization of $2.34 billion, a price-to-earnings ratio of -2.59 and a beta of 1.74. The company has a current ratio of 0.70, a quick ratio of 0.63 and a debt-to-equity ratio of 5.04.

JetBlue Airways (NASDAQ:JBLU - Get Free Report) last released its earnings results on Tuesday, July 28th. The transportation company reported ($0.66) earnings per share (EPS) 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 company had revenue of $2.70 billion for the quarter, compared to analyst estimates of $2.69 billion. During the same period in the prior year, the firm earned ($0.21) EPS. The firm's quarterly revenue was up 14.5% on a year-over-year basis. Research analysts forecast that JetBlue Airways will post -2.35 earnings per share for the current fiscal year.

Insider Buying and Selling

In other 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 transaction, the chief financial officer directly owned 211,099 shares of the company's stock, valued at $1,215,930.24. The trade was a 26.79% decrease in their position. The transaction was disclosed in a document filed 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 business's 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 sale, the director 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. In the last ninety days, insiders have sold 111,253 shares of company stock worth $629,597. 2.41% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Rockefeller Capital Management L.P. increased its position in shares of 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. Caitong International Asset Management Co. Ltd lifted its holdings in shares of JetBlue Airways by 639.1% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 5,839 shares of the transportation company's stock valued at $29,000 after acquiring an additional 5,049 shares in the last quarter. Kestra Advisory Services LLC purchased a new stake in JetBlue Airways during the 4th quarter worth $30,000. Leonteq Securities AG purchased a new stake in JetBlue Airways during the 4th quarter worth $32,000. Finally, Essential Partners LLC increased its holdings in JetBlue Airways by 1,048.5% in the 1st quarter. Essential Partners LLC now owns 7,293 shares of the transportation company's stock valued at $32,000 after purchasing an additional 6,658 shares in the last quarter. 83.71% of the stock is owned by institutional investors and hedge funds.

About JetBlue Airways

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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