Controladora Vuela Compania de Aviacion (NYSE:VLRS) Share Price Crosses Below 200 Day Moving Average - What's Next?

Key Points

• VLRS shares fell below their 200-day moving average, trading as low as $6.55 versus the $7.55 average, and last changed hands near $6.56.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating and an average price target of $9.40, although targets range from $7.70 to $11.00.
• The company reported a quarterly EPS loss of $1.11, slightly worse than estimates, despite revenue of $859 million; analysts expect a full-year loss of approximately $2.49 per share.

Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (NYSE:VLRS - Get Free Report) shares passed below its two hundred day moving average during trading on Wednesday. The stock has a two hundred day moving average of $7.55 and traded as low as $6.55. Controladora Vuela Compania de Aviacion shares last traded at $6.5640, with a volume of 326,243 shares.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the company. The Goldman Sachs Group cut their price objective on Controladora Vuela Compania de Aviacion from $8.60 to $7.70 and set a "neutral" rating on the stock in a research note on Tuesday, August 11th. Jefferies Financial Group initiated coverage on Controladora Vuela Compania de Aviacion in a report on Thursday, June 18th. They set a "hold" rating and a $10.00 price target on the stock. Weiss Ratings downgraded Controladora Vuela Compania de Aviacion from a "sell (d)" rating to a "sell (e+)" rating in a report on Friday, July 31st. JPMorgan Chase & Co. dropped their price target on shares of Controladora Vuela Compania de Aviacion from $10.50 to $9.50 and set a "neutral" rating on the stock in a research report on Friday, June 12th. Finally, UBS Group boosted their price objective 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. Three investment analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, Controladora Vuela Compania de Aviacion presently has a consensus rating of "Hold" and an average target price of $9.40.

Controladora Vuela Compania de Aviacion Trading Down 2.2%

The firm has a market cap of $765.36 million, a P/E ratio of -4.00 and a beta of 1.72. The company's 50 day moving average is $7.17 and its two-hundred day moving average is $7.55. The company has a debt-to-equity ratio of 6.78, a current ratio of 0.64 and a quick ratio of 0.64.

Controladora Vuela Compania de Aviacion (NYSE:VLRS - Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The transportation company reported ($1.11) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($1.08) by ($0.03). The firm had revenue of $859.00 million for the quarter, compared to the consensus estimate of $854.70 million. Controladora Vuela Compania de Aviacion had a negative net margin of 5.71% and a negative return on equity of 93.91%. On average, sell-side analysts predict that Controladora Vuela Compania de Aviacion, S.A.B. de C.V. will post -2.49 earnings per share for the current year.

Institutional Investors Weigh In On Controladora Vuela Compania de Aviacion

A number of institutional investors have recently added to or reduced their stakes in the stock. GAMMA Investing LLC raised its stake in Controladora Vuela Compania de Aviacion by 238.7% during the second quarter. GAMMA Investing LLC now owns 3,265 shares of the transportation company's stock worth $31,000 after acquiring an additional 2,301 shares in the last quarter. Royal Bank of Canada lifted its position in Controladora Vuela Compania de Aviacion by 6,204.9% during the 1st quarter. Royal Bank of Canada now owns 7,755 shares of the transportation company's stock worth $56,000 after buying an additional 7,632 shares in the last quarter. FNY Investment Advisers LLC bought a new stake in Controladora Vuela Compania de Aviacion during the 2nd quarter worth about $187,000. Y Intercept Hong Kong Ltd bought a new stake in Controladora Vuela Compania de Aviacion during the 1st quarter worth about $177,000. Finally, Savant Capital LLC grew its holdings in Controladora Vuela Compania de Aviacion by 143.3% during the 4th quarter. Savant Capital LLC now owns 26,177 shares of the transportation company's stock worth $232,000 after acquiring an additional 15,416 shares during the last quarter. 53.32% of the stock is owned by institutional investors and hedge funds.

About Controladora Vuela Compania de Aviacion

Controladora Vuela Compañía de Aviación, SAB. de C.V. is the holding company of Volaris, an ultra-low-cost airline based in Mexico. Founded in 2005, Volaris began commercial operations in 2006 and provides scheduled passenger air transportation, with additional revenue from ancillary offerings such as baggage, seat selection and other travel-related services.

Volaris serves a broad network of destinations in Mexico, the United States and Central America. Its operations connect major Mexican cities with U.S.

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