JetBlue Airways (NASDAQ:JBLU) Hits New 1-Year Low - Time to Sell?

Key Points

• JetBlue shares fell 7.5% to a new 52-week low of $3.34, below both the 50-day and 200-day moving averages.
• Analyst sentiment remains cautious, with eight Hold ratings and five Sell ratings producing a consensus “Reduce” rating and an average price target of $5.02.
• Although quarterly revenue reached $2.70 billion and the company slightly beat EPS expectations, JetBlue remains unprofitable, with high leverage, weak liquidity, and projected full-year losses; its CFO also sold shares under a pre-arranged plan.

JetBlue Airways Corporation (NASDAQ:JBLU - Get Free Report)'s share price hit a new 52-week low during trading on Wednesday. The company traded as low as $3.34 and last traded at $3.35, with a volume of 40,763,152 shares changing hands. The stock had previously closed at $3.62.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on JBLU shares. The Goldman Sachs Group increased their price target on shares of JetBlue Airways from $3.50 to $4.50 and gave the stock a "sell" rating in a research note on Thursday, July 2nd. Bank of America raised their price objective on shares of JetBlue Airways from $3.50 to $4.00 and gave the stock an "underperform" rating in a research report on Wednesday, July 1st. Weiss Ratings restated a "sell (d-)" rating on shares of JetBlue Airways in a research note on Friday, July 17th. Susquehanna dropped their price objective on shares of JetBlue Airways from $6.00 to $4.00 and set a "neutral" rating on the stock in a research note on Wednesday, October 7th. Finally, Barclays reduced their target price on shares of JetBlue Airways from $7.00 to $5.00 and set an "equal weight" rating for the company in a report on Friday, September 11th. Eight research analysts have rated the stock with a Hold rating and five have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Reduce" and a consensus target price of $5.02.

JetBlue Airways Stock Down 7.5%

The company has a 50 day simple moving average of $4.68 and a 200 day simple moving average of $5.04. The company has a debt-to-equity ratio of 5.04, a quick ratio of 0.63 and a current ratio of 0.70.

JetBlue Airways (NASDAQ:JBLU - Get Free Report) last announced its earnings results on Tuesday, July 28th. The transportation company reported ($0.66) earnings per share for the quarter, beating the consensus estimate of ($0.69) by $0.03. The company had revenue of $2.70 billion for the quarter, compared to the consensus estimate of $2.69 billion. JetBlue Airways had a negative return on equity of 45.92% and a negative net margin of 9.32%. The company's revenue was up 14.5% on a year-over-year basis. During the same period last year, the business posted ($0.21) EPS. On average, equities research analysts expect that JetBlue Airways Corporation will post -2.68 earnings per share for the current fiscal year.

Insider Activity at JetBlue Airways

In related news, CFO Ursula Hurley sold 77,253 shares of the stock in a transaction on Thursday, July 30th. The stock was sold at an average price of $5.76, for a total transaction of $444,977.28. Following the completion of the sale, the chief financial officer directly owned 211,099 shares of the company's stock, valued at $1,215,930.24. This trade represents a 26.79% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 83,253 shares of company stock worth $474,477 in the last three months. 2.41% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On JetBlue Airways

Institutional investors have recently bought and sold shares of the company. U S Global Investors Inc. raised its position in JetBlue Airways by 17.2% in the first quarter. U S Global Investors Inc. now owns 5,542,536 shares of the transportation company's stock worth $24,498,000 after acquiring an additional 813,782 shares in the last quarter. Bank of America Corp DE acquired a new stake in JetBlue Airways in the second quarter valued at $20,022,000. Primecap Management Co. CA acquired a new stake in JetBlue Airways in the second quarter valued at $13,549,000. Renaissance Technologies LLC boosted its position in shares of JetBlue Airways by 235.9% during the 1st quarter. Renaissance Technologies LLC now owns 2,246,200 shares of the transportation company's stock worth $9,928,000 after purchasing an additional 1,577,500 shares in the last quarter. Finally, Bank of New York Mellon Corp purchased a new stake in shares of JetBlue Airways during the 2nd quarter worth $11,336,000. 83.71% of the stock is owned by institutional investors and hedge funds.

About JetBlue Airways

JetBlue Airways Corp. NASDAQ: JBLU is a passenger airline that provides scheduled air transportation in the United States, the Caribbean, Latin America and select destinations in Canada and Europe. The company serves leisure and business travelers through a network centered on major U.S. airports, including New York, Boston, Fort Lauderdale and Orlando.

JetBlue offers multiple travel products, including its core economy service and premium Mint cabins on select routes. Its onboard offerings have included complimentary snacks and beverages, seatback entertainment, Wi-Fi and additional-legroom seating options marketed as Even More Space.

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