JetBlue Airways (NASDAQ:JBLU) Shares Gap Up - Still a Buy?

Key Points

• JetBlue shares gapped up premarket from $4.86 to an open of $5.10 and last traded around $5.03 on ~4.86 million shares, with a market cap of about $1.76 billion and 50/200-day moving averages near $4.85–$4.86.
• Analyst sentiment is mixed but cautious: the consensus rating is Reduce with an average target of $4.88 (1 Strong Buy, 7 Hold, 4 Sell), and recent moves include UBS and Citi cutting targets while TD Cowen upgraded to a strong-buy.
• Fundamentals remain weak—JetBlue reported an EPS miss (-$0.87 vs. -$0.72 est.), posted negative ROE and net margin, and shows high leverage (debt/equity ~4.25) with low liquidity (current ratio ~0.70).

JetBlue Airways Corporation (NASDAQ:JBLU - Get Free Report) shares gapped up prior to trading on Monday . The stock had previously closed at $4.86, but opened at $5.10. JetBlue Airways shares last traded at $5.0250, with a volume of 4,864,413 shares changing hands.

Analyst Ratings Changes

JBLU has been the subject of a number of recent analyst reports. UBS Group decreased their target price on shares of JetBlue Airways from $4.00 to $3.50 and set a "sell" rating for the company in a research report on Monday, March 16th. TD Cowen upgraded shares of JetBlue Airways from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, March 10th. Citigroup decreased their target price on shares of JetBlue Airways from $6.00 to $4.40 and set a "neutral" rating for the company in a research report on Friday, March 20th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of JetBlue Airways in a research note on Tuesday, April 21st. Finally, Susquehanna lifted their price objective on shares of JetBlue Airways from $4.00 to $5.00 and gave the stock a "neutral" rating in a research note on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat, JetBlue Airways currently has a consensus rating of "Reduce" and an average target price of $4.88.

JetBlue Airways Stock Performance

The firm's fifty day simple moving average is $4.85 and its 200 day simple moving average is $4.86. The company has a market capitalization of $1.76 billion, a price-to-earnings ratio of -2.44 and a beta of 1.69. The company has a debt-to-equity ratio of 4.25, a current ratio of 0.70 and a quick ratio of 0.64.

JetBlue Airways (NASDAQ:JBLU - Get Free Report) last announced its earnings results on Tuesday, April 28th. The transportation company reported ($0.87) EPS for the quarter, missing the consensus estimate of ($0.72) by ($0.15). JetBlue Airways had a negative return on equity of 32.76% and a negative net margin of 7.78%.The firm had revenue of $2.24 billion during the quarter, compared to analyst estimates of $2.24 billion. During the same quarter in the previous year, the business earned ($0.59) earnings per share. The business's quarterly revenue was up 4.7% compared to the same quarter last year. On average, sell-side analysts forecast that JetBlue Airways Corporation will post -2.57 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Fifth Third Bancorp boosted its holdings in shares of JetBlue Airways by 2,552.4% in the first quarter. Fifth Third Bancorp now owns 68,590 shares of the transportation company's stock worth $303,000 after buying an additional 66,004 shares during the period. U S Global Investors Inc. boosted its holdings in shares of JetBlue Airways by 17.2% in the first quarter. U S Global Investors Inc. now owns 5,542,536 shares of the transportation company's stock worth $24,498,000 after buying an additional 813,782 shares during the period. Kestra Advisory Services LLC lifted its position in shares of JetBlue Airways by 62.1% in the first quarter. Kestra Advisory Services LLC now owns 10,809 shares of the transportation company's stock worth $48,000 after purchasing an additional 4,142 shares in the last quarter. Praxis Investment Management Inc. purchased a new stake in shares of JetBlue Airways in the first quarter worth approximately $99,000. Finally, HB Wealth Management LLC purchased a new stake in shares of JetBlue Airways in the first quarter worth approximately $64,000. 83.71% of the stock is currently 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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