Controladora Vuela Compania de Aviacion (NYSE:VLRS) Sets New 1-Year Low - Here's What Happened

Key Points

• Volaris shares hit a new 52-week low, falling to $5.46 during Monday trading from a prior close of $5.68.
• Analyst sentiment is mixed: the stock has an average “Hold” rating and a $9.40 average price target, with recent downgrades from Zacks Research and Wall Street Zen offset by UBS raising its target to $11.
• The company has a $652.38 million market capitalization and significant leverage, reflected in a 6.78 debt-to-equity ratio; institutional investors own 53.32% of outstanding shares.

Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (NYSE:VLRS - Get Free Report) shares reached a new 52-week low during mid-day trading on Monday. The stock traded as low as $5.46 and last traded at $5.5160, with a volume of 81,012 shares. The stock had previously closed at $5.68.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on VLRS. UBS Group boosted their price target on shares of Controladora Vuela Compania de Aviacion from $9.00 to $11.00 and gave the stock a "buy" rating in a research note on Wednesday, August 5th. Weiss Ratings lowered shares of Controladora Vuela Compania de Aviacion from a "sell (d)" rating to a "sell (e+)" rating in a research note on Friday, July 31st. The Goldman Sachs Group dropped their price objective on shares of Controladora Vuela Compania de Aviacion from $8.60 to $7.70 and set a "neutral" rating for the company in a report on Tuesday, August 11th. Zacks Research downgraded shares of Controladora Vuela Compania de Aviacion from a "hold" rating to a "strong sell" rating in a research note on Thursday, October 15th. Finally, Wall Street Zen lowered shares of Controladora Vuela Compania de Aviacion from a "hold" rating to a "sell" rating in a report on Saturday. Three research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat, Controladora Vuela Compania de Aviacion has an average rating of "Hold" and an average price target of $9.40.

Controladora Vuela Compania de Aviacion Stock Performance

The firm has a market capitalization of $652.38 million, a price-to-earnings ratio of -3.41 and a beta of 1.81. The company has a quick ratio of 0.64, a current ratio of 0.64 and a debt-to-equity ratio of 6.78. The stock has a 50-day moving average price of $6.53 and a 200 day moving average price of $7.43.

Institutional Investors Weigh In On Controladora Vuela Compania de Aviacion

Large investors have recently modified their holdings of the company. Confluence Investment Management LLC lifted its position in shares of Controladora Vuela Compania de Aviacion by 5.6% during the 3rd quarter. Confluence Investment Management LLC now owns 32,386 shares of the transportation company's stock worth $212,000 after purchasing an additional 1,710 shares during the last quarter. WINTON GROUP Ltd purchased a new position in Controladora Vuela Compania de Aviacion in the second quarter valued at $653,000. FNY Investment Advisers LLC purchased a new position in Controladora Vuela Compania de Aviacion in the second quarter valued at $187,000. GAMMA Investing LLC increased its holdings in Controladora Vuela Compania de Aviacion by 238.7% in the second quarter. GAMMA Investing LLC now owns 3,265 shares of the transportation company's stock valued at $31,000 after buying an additional 2,301 shares during the last quarter. Finally, Empowered Funds LLC acquired a new stake in Controladora Vuela Compania de Aviacion during the first quarter worth approximately $1,103,000. 53.32% of the stock is owned by hedge funds and other institutional investors.

Controladora Vuela Compania de Aviacion Company Profile

Controladora Vuela Compañía de Aviación, SAB. de C.V., operating under the Volaris brand, is a Mexican ultra-low-cost airline. The company provides scheduled passenger air transportation, along with ancillary services such as baggage, seat selection and other travel-related offerings.

Volaris began operations in 2006 and serves a broad network of destinations in Mexico, the United States, and Central America. Its business model emphasizes affordable base fares, high aircraft utilization and the separate sale of optional services.

Controladora Vuela is headquartered in Mexico City and is listed on the New York Stock Exchange under the symbol VLRS.

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