LATAM Airlines Group S.A. (NYSE:LTM) Short Interest Down 20.6% in April

Key Points

• Short interest in LATAM fell 20.6% in April to 2,807,104 shares (roughly 1% of shares short), leaving a days-to-cover ratio of 2.6.
• LATAM beat quarterly expectations with $1.69 EPS versus $1.35 expected and revenue of $3.95 billion, alongside a ~10.1% net margin and very high reported ROE.
• Several major brokers (including Goldman Sachs and Citi) have upgraded the stock, leaving a consensus rating of Moderate Buy and an average price target of $62.10.

LATAM Airlines Group S.A. (NYSE:LTM - Get Free Report) was the recipient of a significant drop in short interest in the month of April. As of April 15th, there was short interest totaling 2,807,104 shares, a drop of 20.6% from the March 31st total of 3,535,168 shares. Approximately 1.0% of the company's shares are short sold. Based on an average daily volume of 1,083,249 shares, the days-to-cover ratio is currently 2.6 days.

LATAM Airlines Group Stock Performance

LTM traded up $0.69 during midday trading on Thursday, reaching $47.60. 680,698 shares of the company were exchanged, compared to its average volume of 939,194. LATAM Airlines Group has a one year low of $31.35 and a one year high of $70.42. The stock has a market capitalization of $13.67 billion, a P/E ratio of 9.56, a PEG ratio of 1.30 and a beta of 3.93. The stock's 50-day simple moving average is $51.00 and its 200 day simple moving average is $52.32.

LATAM Airlines Group (NYSE:LTM - Get Free Report) last issued its earnings results on Wednesday, February 4th. The transportation company reported $1.69 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.35 by $0.34. LATAM Airlines Group had a return on equity of 136.61% and a net margin of 10.07%.The firm had revenue of $3.95 billion for the quarter, compared to analysts' expectations of $3.81 billion. On average, research analysts anticipate that LATAM Airlines Group will post 4.31 earnings per share for the current year.

Analysts Set New Price Targets

A number of brokerages recently commented on LTM. The Goldman Sachs Group upgraded LATAM Airlines Group from a "neutral" rating to a "buy" rating and set a $63.40 price objective for the company in a research report on Monday, April 13th. Citigroup upgraded LATAM Airlines Group from a "neutral" rating to a "buy" rating and lifted their price objective for the stock from $53.00 to $58.00 in a research report on Tuesday, March 17th. Morgan Stanley upgraded LATAM Airlines Group from an "equal weight" rating to an "overweight" rating and lowered their price objective for the stock from $61.00 to $60.00 in a research report on Thursday, March 26th. Barclays lowered their price objective on LATAM Airlines Group from $75.00 to $67.00 and set an "overweight" rating for the company in a research report on Tuesday, March 24th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of LATAM Airlines Group in a research report on Tuesday, April 21st. Four research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $62.10.

Hedge Funds Weigh In On LATAM Airlines Group

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. QRG Capital Management Inc. boosted its holdings in LATAM Airlines Group by 33.0% during the first quarter. QRG Capital Management Inc. now owns 8,648 shares of the transportation company's stock worth $428,000 after buying an additional 2,144 shares during the last quarter. Ritholtz Wealth Management bought a new position in LATAM Airlines Group during the first quarter worth about $682,000. Verde Servicos Internacionais S.A. bought a new position in LATAM Airlines Group during the first quarter worth about $890,000. SG Americas Securities LLC bought a new position in LATAM Airlines Group during the first quarter worth about $233,000. Finally, BI Asset Management Fondsmaeglerselskab A S boosted its holdings in LATAM Airlines Group by 0.6% during the first quarter. BI Asset Management Fondsmaeglerselskab A S now owns 39,161 shares of the transportation company's stock worth $1,936,000 after buying an additional 239 shares during the last quarter.

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.

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