Controladora Vuela Compania de Aviacion (NYSE:VLRS) Stock Breaks Above Fifty Day Moving Average - Should You Sell?

Key Points

• VLRS shares rose above their 50-day moving average, reaching $6.96 and last trading near $6.84, compared with a 50-day average of $6.42.
• Analyst sentiment is mixed: three analysts rate the stock Buy, three Hold and three Sell, producing an overall “Hold” rating and an average price target of $9.40. Recent actions included a Zacks downgrade to “Strong Sell” and UBS raising its target to $11.
• The company reported a quarterly EPS loss of $0.23, missing the $0.04-loss consensus, despite revenue of $1.04 billion exceeding estimates. VLRS also has negative profitability metrics, including a 6.20% net margin, and analysts expect a full-year loss of $2.45 per share.

Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (NYSE:VLRS - Get Free Report) shares passed above its 50 day moving average during trading on Monday. The stock has a 50 day moving average of $6.42 and traded as high as $6.96. Controladora Vuela Compania de Aviacion shares last traded at $6.8350, with a volume of 675,013 shares changing hands.

Analyst Upgrades and Downgrades

A number of brokerages have commented on VLRS. Zacks Research lowered Controladora Vuela Compania de Aviacion from a "hold" rating to a "strong sell" rating in a report on Thursday, October 15th. The Goldman Sachs Group dropped their target price on 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. Weiss Ratings reissued a "sell (e+)" rating on shares of Controladora Vuela Compania de Aviacion in a report on Thursday. UBS Group boosted their target price on shares of Controladora Vuela Compania de Aviacion from $9.00 to $11.00 and gave the company a "buy" rating in a research report on Wednesday, August 5th. Finally, Wall Street Zen upgraded shares of Controladora Vuela Compania de Aviacion from a "sell" rating to a "hold" rating in a research note on Sunday. Three analysts have rated the stock with a Buy rating, three have issued a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat.com, Controladora Vuela Compania de Aviacion has an average rating of "Hold" and an average target price of $9.40.

Controladora Vuela Compania de Aviacion Price Performance

The company has a quick ratio of 0.64, a current ratio of 0.67 and a debt-to-equity ratio of 10.31. The company's fifty day moving average price is $6.42 and its 200 day moving average price is $7.70. The company has a market capitalization of $796.96 million, a P/E ratio of -3.56 and a beta of 1.81.

Controladora Vuela Compania de Aviacion (NYSE:VLRS - Get Free Report) last issued its quarterly earnings results on Monday, October 26th. The transportation company reported ($0.23) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.04) by ($0.19). The company had revenue of $1.04 billion during the quarter, compared to the consensus estimate of $982.29 million. Controladora Vuela Compania de Aviacion had a negative net margin of 6.20% and a negative return on equity of 151.52%. As a group, sell-side analysts forecast that Controladora Vuela Compania de Aviacion, S.A.B. de C.V. will post -2.45 EPS for the current year.

Institutional Trading of Controladora Vuela Compania de Aviacion

Several large investors have recently modified their holdings of VLRS. Confluence Investment Management LLC grew its stake in Controladora Vuela Compania de Aviacion by 5.6% during the third quarter. Confluence Investment Management LLC now owns 32,386 shares of the transportation company's stock worth $212,000 after buying an additional 1,710 shares in the last quarter. GAMMA Investing LLC increased its holdings in Controladora Vuela Compania de Aviacion by 238.7% in the 2nd 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 period. Royal Bank of Canada increased its holdings in Controladora Vuela Compania de Aviacion by 6,204.9% in the 1st quarter. Royal Bank of Canada now owns 7,755 shares of the transportation company's stock valued at $56,000 after buying an additional 7,632 shares during the period. FNY Investment Advisers LLC acquired a new position in shares of Controladora Vuela Compania de Aviacion in the 2nd quarter valued at approximately $187,000. Finally, Y Intercept Hong Kong Ltd acquired a new position in shares of Controladora Vuela Compania de Aviacion in the 1st quarter valued at approximately $177,000. 53.32% of the stock is owned by institutional investors and hedge funds.

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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