JetBlue Airways (NASDAQ:JBLU) Trading Down 5.9% Following Analyst Downgrade

Key Points

• JetBlue shares fell 5.9% to about $5.71 after Citigroup downgraded the stock to “sell” and cut its price target to $5.30 from $6.60.
• Analyst sentiment remains weak, with a consensus “Reduce” rating and an average target price of $5.40; six analysts rate the stock a sell, compared with five holds and one strong buy.
• JetBlue’s latest quarterly loss of $0.66 per share was slightly better than expected, while revenue of $2.70 billion rose 14.5% year over year; however, insiders sold 111,253 shares worth about $629,600 over the past three months.

JetBlue Airways Corporation (NASDAQ:JBLU - Get Free Report)'s stock price dropped 5.9% on Monday after Citigroup downgraded the stock from a neutral rating to a sell rating. Citigroup now has a $5.30 price target on the stock, down from their previous price target of $6.60. JetBlue Airways traded as low as $5.71 and last traded at $5.7130. 2,375,889 shares were traded during mid-day trading, a decline of 91% from the average session volume of 27,170,203 shares. The stock had previously closed at $6.07.

Other equities research analysts have also recently issued reports about the stock. Raymond James Financial reaffirmed an "underperform" rating on shares of JetBlue Airways in a research report on Monday, July 6th. Weiss Ratings reiterated a "sell (d-)" rating on shares of JetBlue Airways in a research report on Friday, July 17th. The Goldman Sachs Group increased their price target 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. Bank of America raised their price objective on shares of JetBlue Airways from $3.50 to $4.00 and gave the stock an "underperform" rating in a report on Wednesday, July 1st. Finally, Wall Street Zen raised JetBlue Airways from a "strong sell" rating to a "sell" rating in a research report on Saturday, May 23rd. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Hold rating and six have given a Sell rating to the company's stock. According to data from MarketBeat.com, JetBlue Airways has a consensus rating of "Reduce" and a consensus target price of $5.40.

Insider Buying and Selling at JetBlue Airways

In other news, Director Vivek Sharma sold 32,000 shares of the stock in a transaction on 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 directly owned 35,479 shares of the company's stock, valued at approximately $191,941.39. This represents a 47.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Ursula L. Hurley sold 77,253 shares of the firm's stock in a transaction on Thursday, July 30th. The shares were sold at an average price of $5.76, for a total value of $444,977.28. Following the transaction, 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 111,253 shares of company stock worth $629,597 over the last three months. Corporate insiders own 2.41% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Trust Co. of Vermont bought a new stake in shares of JetBlue Airways during the second quarter valued at approximately $26,000. Rockefeller Capital Management L.P. lifted its position in JetBlue Airways by 157.3% in the 4th quarter. Rockefeller Capital Management L.P. now owns 5,517 shares of the transportation company's stock valued at $25,000 after acquiring an additional 3,373 shares in the last quarter. Caitong International Asset Management Co. Ltd lifted its position in 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 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 valued at $30,000. Finally, Leonteq Securities AG purchased a new stake in JetBlue Airways during the 4th quarter valued at $32,000. Institutional investors own 83.71% of the company's stock.

JetBlue Airways Trading Down 5.5%

The stock has a fifty day simple moving average of $5.55 and a 200 day simple moving average of $5.24. The company has a debt-to-equity ratio of 5.04, a quick ratio of 0.63 and a current ratio of 0.70. The firm has a market cap of $2.16 billion, a P/E ratio of -2.40 and a beta of 1.74.

JetBlue Airways (NASDAQ:JBLU - Get Free Report) last announced its quarterly 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 return on equity of 45.92% and a negative net margin of 9.32%.The firm had revenue of $2.70 billion for the quarter, compared to the consensus estimate of $2.69 billion. During the same period in the prior year, the company posted ($0.21) earnings per share. The company's quarterly revenue was up 14.5% on a year-over-year basis. On average, research analysts expect that JetBlue Airways Corporation will post -2.35 earnings per share for the current fiscal year.

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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