United Airlines (NASDAQ:UAL) Stock Sees Unusually High Call Option Buying

Key Points

• Unusually high options activity: Investors purchased 68,953 United Airlines call options, 268% above the average daily volume of 18,757.
• Shares declined despite strong earnings: UAL fell 1.8% to $110.52, while its latest quarterly EPS and revenue exceeded analyst expectations. Management guided for fiscal 2026 EPS of $9 to $11.
• Analysts remain broadly bullish: Fifteen analysts rate the stock a Buy, with an average target price of $157.62, although insiders—including the CEO and president—sold shares in recent transactions.

United Airlines Holdings Inc (NASDAQ:UAL - Get Free Report) was the target of unusually large options trading on Monday. Investors bought 68,953 call options on the company. This is an increase of 268% compared to the average daily volume of 18,757 call options.

United Airlines Stock Down 1.8%

UAL traded down $1.99 during trading on Monday, reaching $110.52. The company had a trading volume of 3,178,281 shares, compared to its average volume of 5,728,317. The company has a market cap of $35.87 billion, a P/E ratio of 10.35, a PEG ratio of 0.93 and a beta of 1.30. United Airlines has a 12 month low of $84.64 and a 12 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 business's fifty day moving average price is $115.72 and its 200 day moving average price is $109.66.

United Airlines (NASDAQ:UAL - Get Free Report) last issued its quarterly earnings data on Wednesday, July 15th. The transportation company reported $1.99 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.88 by $0.11. The company had revenue of $17.67 billion during the quarter, compared to the consensus estimate of $17.62 billion. United Airlines had a net margin of 5.56% and a return on equity of 19.05%. The firm's revenue was up 16.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $3.87 earnings per share. United Airlines has set its FY 2026 guidance at 9.000-11.000 EPS. Equities analysts anticipate that United Airlines will post 9.66 EPS for the current year.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the stock. UBS Group boosted their price objective on shares of United Airlines from $137.00 to $146.00 and gave the company a "buy" rating in a report on Thursday, September 24th. Morgan Stanley increased their target price on shares of United Airlines from $185.00 to $190.00 and gave the stock an "overweight" rating in a report on Thursday, July 16th. Jefferies Financial Group reissued a "buy" rating and issued a $155.00 price target on shares of United Airlines in a report on Sunday, July 19th. Rothschild & Co Redburn lowered their price objective on shares of United Airlines from $165.00 to $150.00 and set a "buy" rating for the company in a research report on Friday, September 18th. Finally, Barclays lowered their price objective on shares of United Airlines from $175.00 to $160.00 and set an "overweight" rating for the company in a research report on Friday, September 11th. Fifteen research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $157.62.

Insider Buying and Selling

In related news, President Brett J. Hart sold 30,108 shares of the company's stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $120.72, for a total value of $3,634,637.76. Following the completion of the sale, the president owned 371,583 shares in the company, valued at approximately $44,857,499.76. This represents a 7.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO J. Kirby sold 159,321 shares of the stock in a transaction dated Tuesday, July 21st. The shares were sold at an average price of $118.05, for a total value of $18,807,844.05. Following the completion of the transaction, the chief executive officer directly owned 797,851 shares in the company, valued at $94,186,310.55. The trade was a 16.64% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 221,629 shares of company stock valued at $26,328,598 in the last three months. 0.86% of the stock is currently owned by company insiders.

Institutional Trading of United Airlines

Several hedge funds and other institutional investors have recently modified their holdings of UAL. SJS Investment Consulting Inc. raised its position in United Airlines by 17.0% in the 1st quarter. SJS Investment Consulting Inc. now owns 861 shares of the transportation company's stock valued at $79,000 after buying an additional 125 shares during the last quarter. Koshinski Asset Management Inc. boosted its position in United Airlines by 3.7% during the 1st 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 last quarter. Basecamp Wealth Advisors LLC boosted its position in United Airlines by 32.1% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 654 shares of the transportation company's stock worth $60,000 after acquiring an additional 159 shares during the last quarter. Elevation Wealth Partners LLC grew its stake in shares of United Airlines by 393.0% during the 2nd quarter. Elevation Wealth Partners LLC now owns 212 shares of the transportation company's stock worth $29,000 after acquiring an additional 169 shares in the last quarter. Finally, Parallel Advisors LLC grew its stake in shares of United Airlines by 3.1% during the 4th quarter. Parallel Advisors LLC now owns 6,027 shares of the transportation company's stock worth $674,000 after acquiring an additional 179 shares in the last quarter. Institutional investors and hedge funds own 69.69% of the company's stock.

United Airlines Company Profile

United Airlines Holdings, Inc is the parent company of United Airlines, a major U.S. commercial airline. Through its mainline operations and regional partners, United provides scheduled passenger air transportation and air cargo services to destinations across the United States and international markets.

United operates an extensive global network serving North America, Latin America, Europe, Asia, Africa and the Middle East. Its principal hubs include Chicago, Denver, Houston, Los Angeles, Newark, San Francisco and Washington, DC The airline offers multiple classes of service, including United Polaris business class, United First, United Premium Plus, Economy Plus and standard economy.

United traces its history to 1926 and has grown through the consolidation of several aviation businesses.

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