Controladora Vuela Compania de Aviacion (NYSE:VLRS) Stock Crosses Below 200-Day Moving Average - Time to Sell?

Key Points

• VLRS shares fell below their 200-day moving average of $7.57, trading as low as $6.84 and recently changing hands at $6.9350, signaling potential technical weakness.
• Analysts remain divided, with a consensus “Hold” rating and an average price target of $9.73; four analysts rate the stock Buy, four Hold, and two Sell.
• The company reported a quarterly EPS loss of $1.11, slightly worse than estimates, while maintaining weak profitability metrics including a negative net margin and a debt-to-equity ratio of 6.78.

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 Tuesday . The stock has a two hundred day moving average of $7.57 and traded as low as $6.84. Controladora Vuela Compania de Aviacion shares last traded at $6.9350, with a volume of 440,104 shares.

Analysts Set New Price Targets

A number of analysts have commented on the stock. The Goldman Sachs Group reduced their target price 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. UBS Group lifted 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. Jefferies Financial Group began coverage on shares of Controladora Vuela Compania de Aviacion in a research report on Thursday, June 18th. They set a "hold" rating and a $10.00 price objective for the company. JPMorgan Chase & Co. reduced their price objective on Controladora Vuela Compania de Aviacion from $10.50 to $9.50 and set a "neutral" rating for the company in a research note on Friday, June 12th. Finally, Weiss Ratings cut Controladora Vuela Compania de Aviacion from a "sell (d)" rating to a "sell (e+)" rating in a report on Friday, July 31st. Four research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $9.73.

Controladora Vuela Compania de Aviacion Price Performance

The firm has a market cap of $808.62 million, a PE ratio of -4.23 and a beta of 1.72. The firm's fifty day simple moving average is $7.30 and its two-hundred day simple moving average is $7.57. The company has a quick ratio of 0.64, a current ratio of 0.64 and a debt-to-equity ratio of 6.78.

Controladora Vuela Compania de Aviacion (NYSE:VLRS - Get Free Report) last announced 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 during the quarter, compared to analysts' expectations of $854.70 million. Controladora Vuela Compania de Aviacion had a negative return on equity of 93.91% and a negative net margin of 5.71%. As a group, research analysts expect that Controladora Vuela Compania de Aviacion, S.A.B. de C.V. will post -2.49 EPS for the current year.

Hedge Funds Weigh In On Controladora Vuela Compania de Aviacion

A number of hedge funds have recently made changes to their positions in the business. Fourth Sail Capital LP raised its stake in Controladora Vuela Compania de Aviacion by 0.4% during the 4th quarter. Fourth Sail Capital LP now owns 757,761 shares of the transportation company's stock valued at $6,729,000 after purchasing an additional 3,277 shares during the period. Bank of America Corp DE grew its holdings in Controladora Vuela Compania de Aviacion by 55.4% during the 1st quarter. Bank of America Corp DE now owns 588,981 shares of the transportation company's stock valued at $4,264,000 after buying an additional 209,978 shares in the last quarter. Dorsey Wright & Associates purchased a new stake in Controladora Vuela Compania de Aviacion during the 1st quarter valued at approximately $1,840,000. Diversify Wealth Management LLC bought a new stake in shares of Controladora Vuela Compania de Aviacion during the first quarter valued at approximately $1,279,000. Finally, Empowered Funds LLC bought a new stake in shares of Controladora Vuela Compania de Aviacion during the first quarter valued at approximately $1,103,000. Institutional investors own 53.32% of the company's stock.

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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