LATAM Airlines Group (NYSE:LTM) Shares Gap Up Following Earnings Beat

Key Points

• Earnings beat drove a gap up: LATAM reported EPS of $2.01 vs. $1.35 expected and revenue of $4.08B vs. $3.96B, prompting the stock to gap from $46.26 to an $50.47 open and trade about 11.4% higher (last $51.31).
• Positive analyst and institutional momentum: multiple brokerages upgraded or raised ratings (e.g., Goldman, Morgan Stanley), the consensus rating is a "Moderate Buy" with a $62.10 price target, and several large funds have recently increased their stakes.

LATAM Airlines Group S.A. (NYSE:LTM - Get Free Report) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $46.26, but opened at $50.47. LATAM Airlines Group shares last traded at $51.3090, with a volume of 499,881 shares.

The transportation company reported $2.01 EPS for the quarter, beating analysts' consensus estimates of $1.35 by $0.66. LATAM Airlines Group had a net margin of 10.07% and a return on equity of 136.61%. The company had revenue of $4.08 billion for the quarter, compared to analyst estimates of $3.96 billion.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on LTM. Wall Street Zen cut shares of LATAM Airlines Group from a "strong-buy" rating to a "buy" rating in a research note on Saturday. Morgan Stanley upgraded shares of LATAM Airlines Group from an "equal weight" rating to an "overweight" rating and reduced their price objective for the stock from $61.00 to $60.00 in a research note on Thursday, March 26th. The Goldman Sachs Group upgraded shares of LATAM Airlines Group from a "neutral" rating to a "buy" rating and set a $63.40 price objective for the company in a research note on Monday, April 13th. Weiss Ratings restated a "hold (c)" rating on shares of LATAM Airlines Group in a research note on Tuesday, April 21st. Finally, Barclays reduced their price objective on shares of LATAM Airlines Group from $75.00 to $67.00 and set an "overweight" rating for the company in a research note on Tuesday, March 24th. Four equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $62.10.

Institutional Investors Weigh In On LATAM Airlines Group

Several hedge funds have recently modified their holdings of the business. Morgan Stanley boosted its position in shares of LATAM Airlines Group by 11.2% in the fourth quarter. Morgan Stanley now owns 2,091,845 shares of the transportation company's stock valued at $112,981,000 after acquiring an additional 211,261 shares during the period. Itau Unibanco Holding S.A. bought a new stake in shares of LATAM Airlines Group in the fourth quarter valued at approximately $83,266,000. Arrowstreet Capital Limited Partnership boosted its position in shares of LATAM Airlines Group by 248.4% in the third quarter. Arrowstreet Capital Limited Partnership now owns 1,484,669 shares of the transportation company's stock valued at $67,181,000 after acquiring an additional 1,058,554 shares during the period. Vanguard Group Inc. boosted its position in shares of LATAM Airlines Group by 266.7% in the third quarter. Vanguard Group Inc. now owns 1,039,414 shares of the transportation company's stock valued at $47,033,000 after acquiring an additional 755,997 shares during the period. Finally, Robeco Institutional Asset Management B.V. boosted its position in shares of LATAM Airlines Group by 87.3% in the fourth quarter. Robeco Institutional Asset Management B.V. now owns 1,018,218 shares of the transportation company's stock valued at $54,994,000 after acquiring an additional 474,593 shares during the period.

LATAM Airlines Group Stock Up 11.4%

The company has a market capitalization of $14.79 billion, a P/E ratio of 10.33, a PEG ratio of 1.26 and a beta of 3.62. The firm has a 50-day moving average price of $50.78 and a two-hundred day moving average price of $52.46.

LATAM Airlines Group Company Profile

LATAM Airlines Group SA is a Chilean-based airline holding company formed in 2012 through the merger of LAN Airlines of Chile and TAM Linhas Aéreas of Brazil. The Group offers passenger and cargo air transportation services across South America and beyond, operating under a multi‐brand strategy that encompasses several nationally recognized carriers. Headquartered in Santiago, Chile, LATAM is structured to serve diverse market segments with full-service, premium and low‐cost offerings.

The core business activities of LATAM Airlines Group include scheduled domestic and international passenger flights, air cargo services and maintenance, repair and overhaul (MRO) capabilities through its technical divisions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.