JetBlue Airways (NASDAQ:JBLU) Hits New 12-Month Low on Analyst Downgrade

Key Points

• JetBlue shares hit a new 52-week low, falling to $3.87 after Susquehanna cut its price target from $6.00 to $4.00 while maintaining a neutral rating.
• Analyst sentiment remains weak: the stock has an average “Reduce” rating and a consensus price target of $5.02, with eight Hold and five Sell ratings.
• JetBlue remains financially pressured, reporting a negative net margin and return on equity, a debt-to-equity ratio of 5.04, and expected full-year earnings of negative $2.48 per share.

JetBlue Airways Corporation (NASDAQ:JBLU - Get Free Report) shares hit a new 52-week low during mid-day trading on Thursday after Susquehanna lowered their price target on the stock from $6.00 to $4.00. Susquehanna currently has a neutral rating on the stock. JetBlue Airways traded as low as $3.87 and last traded at $3.9150, with a volume of 2029496 shares changing hands. The stock had previously closed at $3.97.

A number of other brokerages have also commented on JBLU. Seaport Research Partners lowered JetBlue Airways from a "buy" rating to a "neutral" rating in a research report on Monday, August 17th. TD Cowen cut their target price on shares of JetBlue Airways from $6.00 to $5.00 and set a "hold" rating on the stock in a research report on Monday, August 24th. The Goldman Sachs Group raised their target price on shares of JetBlue Airways from $3.50 to $4.50 and gave the company a "sell" rating in a research note on Thursday, July 2nd. Weiss Ratings reiterated a "sell (d-)" rating on shares of JetBlue Airways in a research report on Friday, July 17th. Finally, Bank of America boosted their price target on shares of JetBlue Airways from $3.50 to $4.00 and gave the stock an "underperform" rating in a research note on Wednesday, July 1st. Eight research analysts have rated the stock with a Hold rating and five have issued a Sell rating to the company. According to MarketBeat.com, JetBlue Airways has an average rating of "Reduce" and a consensus price target of $5.02.

Insider Activity at JetBlue Airways

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

Hedge Funds Weigh In On JetBlue Airways

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Cim Investment Management Inc. lifted its holdings in JetBlue Airways by 7.3% in the 2nd quarter. Cim Investment Management Inc. now owns 47,282 shares of the transportation company's stock worth $271,000 after purchasing an additional 3,203 shares in the last quarter. Amundi grew its holdings in JetBlue Airways by 8.9% during the 1st quarter. Amundi now owns 39,447 shares of the transportation company's stock valued at $174,000 after buying an additional 3,238 shares in the last quarter. Rockefeller Capital Management L.P. grew its holdings in JetBlue Airways by 157.3% during the 4th quarter. Rockefeller Capital Management L.P. now owns 5,517 shares of the transportation company's stock valued at $25,000 after buying an additional 3,373 shares in the last quarter. Kestra Advisory Services LLC raised its position in shares of JetBlue Airways by 62.1% during the first quarter. Kestra Advisory Services LLC now owns 10,809 shares of the transportation company's stock valued at $48,000 after buying an additional 4,142 shares during the last quarter. Finally, Trust Co. of Vermont purchased a new position in shares of JetBlue Airways in the second quarter worth $26,000. Institutional investors own 83.71% of the company's stock.

JetBlue Airways Price Performance

The firm's fifty day moving average price is $4.88 and its 200 day moving average price is $5.05. The company has a quick ratio of 0.63, a current ratio of 0.70 and a debt-to-equity ratio of 5.04. The stock has a market cap of $1.47 billion, a PE ratio of -1.64 and a beta of 1.77.

JetBlue Airways (NASDAQ:JBLU - Get Free Report) last posted 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 during the quarter, compared to analysts' expectations of $2.69 billion. JetBlue Airways had a negative net margin of 9.32% and a negative return on equity of 45.92%. JetBlue Airways's quarterly revenue was up 14.5% on a year-over-year basis. During the same period last year, the company posted ($0.21) earnings per share. As a group, equities analysts expect that JetBlue Airways Corporation will post -2.48 EPS for the current fiscal year.

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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