Stock Traders Buy Large Volume of Call Options on United Airlines (NASDAQ:UAL)

Key Points

• United Airlines saw unusually heavy bullish options activity: Investors purchased 68,583 call options, roughly 254% above the average daily volume.
• Analysts maintain a generally positive view, with 16 Buy ratings and two Holds producing a “Moderate Buy” consensus and an average price target of $155.91.
• United reported quarterly EPS of $1.99, beating estimates of $1.88, while revenue rose 16.4% year over year to $17.67 billion; however, insiders sold more than $26.3 million of shares in the last quarter.

United Airlines Holdings Inc (NASDAQ:UAL - Get Free Report) was the target of unusually large options trading activity on Tuesday. Investors bought 68,583 call options on the stock. This represents an increase of approximately 254% compared to the average daily volume of 19,390 call options.

Analysts Set New Price Targets

A number of research firms have commented on UAL. TD Cowen reduced their price objective on shares of United Airlines from $205.00 to $192.00 and set a "buy" rating for the company in a research report on Monday, August 24th. JPMorgan Chase & Co. lifted their target price on shares of United Airlines from $156.00 to $203.00 and gave the stock an "overweight" rating in a report on Friday, July 17th. Wall Street Zen lowered shares of United Airlines from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. UBS Group reduced their price objective on United Airlines from $153.00 to $137.00 and set a "buy" rating for the company in a report on Thursday, September 10th. Finally, Jefferies Financial Group restated a "buy" rating and set a $155.00 target price on shares of United Airlines in a research report on Sunday, July 19th. Sixteen analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $155.91.

Insider Buying and Selling

In related news, EVP Andrew P. Nocella sold 5,000 shares of the firm's stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $117.00, for a total value of $585,000.00. Following the completion of the sale, the executive vice president directly owned 214,955 shares in the company, valued at approximately $25,149,735. This trade represents a 2.27% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO J. Kirby sold 159,321 shares of the business's stock in a transaction that occurred on Tuesday, July 21st. The stock was sold at an average price of $118.05, for a total value of $18,807,844.05. Following the transaction, the chief executive officer directly owned 797,851 shares in the company, valued at approximately $94,186,310.55. This trade represents a 16.64% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 221,629 shares of company stock worth $26,328,598. 0.86% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On United Airlines

A number of hedge funds have recently modified their holdings of UAL. Junto Capital Management LP acquired a new stake in United Airlines in the second quarter valued at $37,460,000. Sequoia Financial Advisors LLC grew its position in shares of United Airlines by 26.2% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 23,613 shares of the transportation company's stock valued at $3,211,000 after buying an additional 4,903 shares during the last quarter. IPG Investment Advisors LLC increased its stake in shares of United Airlines by 14.7% in the second quarter. IPG Investment Advisors LLC now owns 3,900 shares of the transportation company's stock valued at $530,000 after buying an additional 500 shares during the period. National Pension Service raised its position in shares of United Airlines by 45.0% during the second quarter. National Pension Service now owns 43,781 shares of the transportation company's stock worth $5,954,000 after acquiring an additional 13,585 shares during the last quarter. Finally, Pinnacle Wealth Management Advisory Group LLC acquired a new position in shares of United Airlines in the second quarter worth approximately $233,000. Institutional investors and hedge funds own 69.69% of the company's stock.

United Airlines Price Performance

Shares of NASDAQ UAL traded down $2.78 during mid-day trading on Tuesday, hitting $106.18. 1,869,201 shares of the stock traded hands, compared to its average volume of 5,855,661. The company has a market cap of $34.46 billion, a PE ratio of 9.94, a price-to-earnings-growth ratio of 0.89 and a beta of 1.27. United Airlines has a twelve month low of $84.64 and a twelve month high of $138.77. The company has a debt-to-equity ratio of 1.45, a current ratio of 0.78 and a quick ratio of 0.72. The firm has a 50 day simple moving average of $118.48 and a two-hundred day simple moving average of $108.35.

United Airlines (NASDAQ:UAL - Get Free Report) last issued its earnings results on Wednesday, July 15th. The transportation company reported $1.99 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.88 by $0.11. United Airlines had a return on equity of 19.05% and a net margin of 5.56%.The business had revenue of $17.67 billion during the quarter, compared to analysts' expectations of $17.62 billion. During the same quarter in the prior year, the firm earned $3.87 EPS. The business's revenue for the quarter was up 16.4% compared to the same quarter last year. United Airlines has set its FY 2026 guidance at 9.000-11.000 EPS. As a group, equities research analysts forecast that United Airlines will post 9.91 EPS for the current fiscal year.

United Airlines Company Profile

United Airlines Holdings, Inc NASDAQ: UAL is the parent company of United Airlines, Inc, a major U.S. airline headquartered in Chicago, Illinois. United provides scheduled air transportation for passengers and cargo, serving destinations across the United States and connecting North America with international markets throughout Latin America, Europe, Asia, Africa and the Middle East.

The company operates a broad network through hubs including Chicago, Denver, Houston, Los Angeles, Newark, San Francisco and Washington, DC Its services include economy, premium-economy and business-class travel, as well as air cargo transportation.

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