Traders Purchase High Volume of Call Options on United Airlines (NASDAQ:UAL)

Key Points

• Call-option trading surged: Traders bought 406,320 UAL call options, about 1,813% above the average volume; the stock rose 8.0% on Thursday.
• United reported quarterly EPS of $2.54, slightly below the $2.57 consensus, while revenue of $17.88 billion also narrowly missed estimates; revenue increased 17.4% year over year.
• Analysts maintained a “Moderate Buy” consensus, with an average price target of $156.19; 16 analysts rated the stock Buy, one Hold, and one Sell.

United Airlines Holdings Inc (NASDAQ:UAL - Get Free Report) was the target of some unusual options trading activity on Thursday. Stock traders bought 406,320 call options on the stock. This is an increase of 1,813% compared to the average volume of 21,236 call options.

United Airlines Trading Up 8.0%

NASDAQ UAL opened at $115.76 on Thursday. The stock has a market capitalization of $37.61 billion, a P/E ratio of 12.15, a P/E/G ratio of 1.37 and a beta of 1.38. United Airlines has a one year low of $84.64 and a one year high of $138.77. The company has a debt-to-equity ratio of 1.38, a current ratio of 0.75 and a quick ratio of 0.68. The business has a 50 day simple moving average of $107.41 and a 200 day simple moving average of $108.22.

United Airlines (NASDAQ:UAL - Get Free Report) last announced its quarterly earnings results on Tuesday, October 20th. The transportation company reported $2.54 EPS for the quarter, missing analysts' consensus estimates of $2.57 by ($0.03). United Airlines had a net margin of 5.46% and a return on equity of 17.59%. The business had revenue of $17.88 billion for the quarter, compared to the consensus estimate of $17.89 billion. During the same quarter last year, the firm posted $2.78 EPS. The business's revenue for the quarter was up 17.4% compared to the same quarter last year. Research analysts expect that United Airlines will post 7.10 earnings per share for the current year.

Insiders Place Their Bets

In related news, EVP Andrew Nocella sold 5,000 shares of United Airlines stock in a transaction dated Tuesday, August 25th. The stock was 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 $25,149,735. This trade represents a 2.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, President Brett J. Hart sold 39,000 shares of the business's stock in a transaction that occurred on Friday, October 30th. The stock was sold at an average price of $102.68, for a total transaction of $4,004,520.00. Following the sale, the president directly owned 325,122 shares of the company's stock, valued at approximately $33,383,526.96. This trade represents a 10.71% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.86% of the stock is currently owned by company insiders.

Institutional Trading of United Airlines

Several institutional investors and hedge funds have recently bought and sold shares of UAL. Apollon Wealth Management LLC raised its stake in United Airlines by 1.1% during the third quarter. Apollon Wealth Management LLC now owns 10,327 shares of the transportation company's stock valued at $1,146,000 after buying an additional 117 shares during the last quarter. Pinnacle Associates Ltd. boosted its holdings in shares of United Airlines by 2.0% during the 3rd quarter. Pinnacle Associates Ltd. now owns 6,461 shares of the transportation company's stock valued at $717,000 after acquiring an additional 127 shares during the last quarter. Foster Victor Wealth Advisors LLC boosted its holdings in United Airlines by 6.1% in the third quarter. Foster Victor Wealth Advisors LLC now owns 2,392 shares of the transportation company's stock worth $265,000 after purchasing an additional 137 shares during the last quarter. Koshinski Asset Management Inc. grew its holdings in shares of United Airlines by 3.7% in the first quarter. Koshinski Asset Management Inc. now owns 3,914 shares of the transportation company's stock worth $360,000 after acquiring an additional 138 shares during the period. Finally, Keybank National Association OH grew its stake in shares of United Airlines by 2.6% during the 3rd quarter. Keybank National Association OH now owns 5,795 shares of the transportation company's stock valued at $643,000 after purchasing an additional 145 shares during the period. 69.69% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on the stock. BMO Capital Markets cut their price target on shares of United Airlines from $140.00 to $135.00 and set an "outperform" rating on the stock in a research note on Thursday, October 22nd. Wells Fargo & Company decreased their price target on United Airlines from $160.00 to $155.00 and set an "overweight" rating for the company in a research note on Thursday, October 22nd. Evercore restated an "outperform" rating and set a $160.00 price objective on shares of United Airlines in a research note on Wednesday, October 21st. Weiss Ratings reissued a "hold (c+)" rating on shares of United Airlines in a report on Thursday, October 15th. Finally, Jefferies Financial Group reiterated a "buy" rating and set a $142.00 target price on shares of United Airlines in a research note on Wednesday, October 21st. Sixteen 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 company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $156.19.

United Airlines Company Profile

United Airlines Holdings, Inc is the parent company of United Airlines, a major U.S. commercial airline headquartered in Chicago, Illinois. The company provides scheduled passenger air transportation and air cargo services, connecting customers across the United States and to international destinations.

United operates a broad network serving North America, Latin America, Europe, Asia, Africa and Oceania. Its operations are supported by hubs in major U.S. cities, including Chicago, Denver, Houston, Los Angeles, Newark, San Francisco and Washington, DC, as well as an extensive network of regional carriers operating under the United Express brand.

The company offers several travel classes and related services, including premium-cabin seating, onboard amenities, airport lounges and the MileagePlus customer loyalty program.

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