JetBlue Airways (NASDAQ:JBLU) Stock Sees Unusually High Put Option Buying

Key Points

• JetBlue saw unusually heavy bearish options activity: Traders purchased 46,094 put options, about 47% above the average daily volume, potentially reflecting increased hedging or bearish speculation.
• Analyst sentiment remains cautious: Eight analysts rate the stock “Hold” and five rate it “Sell,” giving JetBlue an overall “Reduce” rating and an average price target of $5.02. Susquehanna cut its target to $4.00, while Citi upgraded the stock to “Neutral” but lowered its target to $4.50.
• JetBlue shows some operational and revenue positives but remains financially weak: Revenue rose 14.5% year over year and the latest loss narrowly beat estimates, while FAA approval for 22 LaGuardia slots could improve its competitive position. However, the company remains unprofitable, highly leveraged, and shares traded near their 52-week low at $3.97.

JetBlue Airways Corporation (NASDAQ:JBLU - Get Free Report) was the target of some unusual options trading activity on Wednesday. Stock traders acquired 46,094 put options on the company. This represents an increase of 47% compared to the average daily volume of 31,287 put options.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on JBLU. The Goldman Sachs Group boosted their price objective on JetBlue Airways from $3.50 to $4.50 and gave the company a "sell" rating in a research note on Thursday, July 2nd. Raymond James Financial reaffirmed an "underperform" rating on shares of JetBlue Airways in a report on Monday, July 6th. Susquehanna decreased their price target on JetBlue Airways from $6.00 to $4.00 and set a "neutral" rating on the stock in a research report on Wednesday. Barclays lowered their price target on shares of JetBlue Airways from $7.00 to $5.00 and set an "equal weight" rating on the stock in a report on Friday, September 11th. Finally, Citigroup upgraded shares of JetBlue Airways from a "sell" rating to a "neutral" rating and cut their price objective for the company from $5.30 to $4.50 in a research report on Tuesday. Eight equities research analysts have rated the stock with a Hold rating and five have assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Reduce" and an average target price of $5.02.

JetBlue Airways Price Performance

JetBlue Airways stock traded down $0.06 during midday trading on Wednesday, hitting $3.97. 21,992,360 shares of the company's stock were exchanged, compared to its average volume of 25,636,375. JetBlue Airways has a 52-week low of $3.87 and a 52-week high of $6.62. The stock has a 50-day moving average price of $4.91 and a two-hundred day moving average price of $5.06. 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 company has a market cap of $1.50 billion, a P/E ratio of -1.66 and a beta of 1.77.

JetBlue Airways (NASDAQ:JBLU - Get Free Report) last issued its quarterly earnings data on Tuesday, July 28th. The transportation company reported ($0.66) EPS for the quarter, topping the consensus estimate of ($0.69) by $0.03. The company had revenue of $2.70 billion during the quarter, compared to analyst estimates of $2.69 billion. JetBlue Airways had a negative return on equity of 45.92% and a negative net margin of 9.32%.JetBlue Airways's revenue was up 14.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.21) earnings per share. On average, equities research analysts forecast that JetBlue Airways will post -2.42 earnings per share for the current year.

More JetBlue Airways News

Here are the key news stories impacting JetBlue Airways this week:

• Positive Sentiment: FAA approval for 22 LaGuardia slots: JetBlue received final approval to take over Spirit’s former takeoff and landing slots at New York’s slot-constrained LaGuardia Airport. The added capacity could strengthen JetBlue’s presence on premium, business-oriented routes and improve pricing power because competitors cannot easily add flights. JetBlue lands FAA approval for Spirit's old slots at LaGuardia Airport
• Positive Sentiment: Citi removed its sell rating: Citigroup upgraded JBLU from “sell” to “neutral,” saying downside risk is more limited around current valuation levels. However, Citi reduced its price target to $4.50 from $5.30, tempering the benefit of the rating change. Citi upgrades JetBlue to neutral as valuation risk eases
• Neutral Sentiment: Revenue momentum provides a potential turnaround signal: JetBlue’s latest quarterly revenue rose 14.5% year over year, while its $0.66 per-share loss was modestly better than analyst expectations. The company is also emphasizing premium seating and Mint lounges, but profitability remains weak and leverage is high.
• Negative Sentiment: Analyst target cut by Susquehanna: Susquehanna lowered its JBLU price target to $4.00 from $6.00 and assigned a “neutral” rating, implying limited upside from current levels. Susquehanna lowers JetBlue price target
• Negative Sentiment: Unusually heavy put-option activity: Traders purchased 46,094 JBLU put options, approximately 47% above average daily volume. The activity may reflect increased hedging or bearish speculation, adding near-term pressure to investor sentiment.

Insiders Place Their Bets

In other JetBlue Airways news, CFO Ursula Hurley sold 77,253 shares of the business's stock in a transaction on Thursday, July 30th. The shares were sold at an average price of $5.76, for a total transaction of $444,977.28. Following the sale, 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 position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 83,253 shares of company stock valued at $474,477. 2.41% of the stock is currently owned by insiders.

Institutional Investors Weigh In On JetBlue Airways

Several hedge funds have recently added to or reduced their stakes in the company. Rockefeller Capital Management L.P. boosted its stake in 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 buying an additional 3,373 shares in the last quarter. Trust Co. of Vermont bought a new position in shares of JetBlue Airways during the 2nd quarter valued at $26,000. Northwestern Mutual Wealth Management Co. purchased a new stake in JetBlue Airways during the second quarter valued at about $27,000. Essential Partners LLC grew its stake in shares of JetBlue Airways by 1,048.5% during the first quarter. Essential Partners LLC now owns 7,293 shares of the transportation company's stock valued at $32,000 after buying an additional 6,658 shares during the last quarter. Finally, EverSource Wealth Advisors LLC increased its holdings in shares of JetBlue Airways by 162.2% in the second quarter. EverSource Wealth Advisors LLC now owns 7,707 shares of the transportation company's stock worth $44,000 after buying an additional 4,768 shares during the period. Institutional investors own 83.71% of the company's stock.

JetBlue Airways Company Profile

JetBlue Airways Corp. NASDAQ: JBLU is a passenger airline that provides scheduled air transportation in the United States, the Caribbean, Latin America and select destinations in Canada and Europe. The company serves leisure and business travelers through a network centered on major U.S. airports, including New York, Boston, Fort Lauderdale and Orlando.

JetBlue offers multiple travel products, including its core economy service and premium Mint cabins on select routes. Its onboard offerings have included complimentary snacks and beverages, seatback entertainment, Wi-Fi and additional-legroom seating options marketed as Even More Space.

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