JetBlue Airways (NASDAQ:JBLU) Shares Down 17% - Here's What Happened

Key Points

• JetBlue shares plunged 17% to approximately $2.43, with trading volume 78% above average.
• Analyst sentiment remains negative: the stock has a consensus “Reduce” rating from nine Hold and four Sell ratings, with an average price target of $4.98.
• JetBlue remains financially pressured, reporting a quarterly loss of $0.66 per share, negative margins, and a debt-to-equity ratio of 5.04; its CFO also sold shares under a pre-arranged trading plan.

JetBlue Airways Corporation (NASDAQ:JBLU - Get Free Report) fell 17% during trading on Thursday. The company traded as low as $2.59 and last traded at $2.4330. Approximately 46,158,071 shares traded hands during mid-day trading, an increase of 78% from the average daily volume of 25,900,176 shares. The stock had previously closed at $2.93.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on JBLU shares. Wall Street Zen cut JetBlue Airways from a "sell" rating to a "strong sell" rating in a report on Saturday, August 22nd. The Goldman Sachs Group boosted their price target on shares of JetBlue Airways from $3.50 to $4.50 and gave the company a "sell" rating in a report on Thursday, July 2nd. Susquehanna decreased their price target on JetBlue Airways from $6.00 to $4.00 and set a "neutral" rating on the stock in a research report on Wednesday, October 7th. Bank of America boosted 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. Finally, Citigroup upgraded shares of JetBlue Airways from a "sell" rating to a "neutral" rating and lowered their price target for the stock from $5.30 to $4.50 in a research report on Tuesday, October 6th. Nine research analysts have rated the stock with a Hold rating and four have given a Sell rating to the company's stock. According to MarketBeat.com, JetBlue Airways currently has a consensus rating of "Reduce" and a consensus price target of $4.98.

JetBlue Airways Stock Down 9.6%

The stock has a 50-day moving average of $4.32 and a 200 day moving average of $4.98. 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 company has a market capitalization of $999.88 million, a PE ratio of -1.11 and a beta of 1.77.

JetBlue Airways (NASDAQ:JBLU - Get Free Report) last announced its quarterly 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 firm had revenue of $2.70 billion for the quarter, compared to analysts' expectations 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 in the prior year, the business posted ($0.21) earnings per share. Sell-side analysts anticipate that JetBlue Airways Corporation will post -2.68 EPS for the current year.

Insider Buying and Selling at JetBlue Airways

In related news, CFO Ursula Hurley sold 77,253 shares of the company's stock in a transaction on Thursday, July 30th. The shares were sold at an average price of $5.76, for a total value of $444,977.28. Following the completion of the transaction, the chief financial officer owned 211,099 shares of the company's stock, valued at approximately $1,215,930.24. This represents a 26.79% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 83,253 shares of company stock worth $474,477. Company insiders own 2.41% of the company's stock.

Hedge Funds Weigh In On JetBlue Airways

Several institutional investors have recently bought and sold shares of JBLU. Bank of America Corp DE acquired a new stake in JetBlue Airways during the 2nd quarter valued at approximately $20,022,000. Primecap Management Co. CA purchased a new stake in shares of JetBlue Airways during the second quarter worth approximately $13,549,000. Bank of New York Mellon Corp acquired a new stake in shares of JetBlue Airways in the second quarter valued at about $11,336,000. Connor Clark & Lunn Investment Management Ltd. acquired a new position in JetBlue Airways during the second quarter worth about $10,748,000. Finally, Renaissance Technologies LLC grew its stake in JetBlue Airways by 235.9% during the 1st quarter. Renaissance Technologies LLC now owns 2,246,200 shares of the transportation company's stock valued at $9,928,000 after acquiring an additional 1,577,500 shares in the last quarter. 83.71% of the stock is owned by hedge funds and other institutional investors.

JetBlue Airways Company Profile

JetBlue Airways Corporation is a U.S.-based passenger airline that provides scheduled air transportation to destinations across the United States, the Caribbean, Latin America and select locations in Europe. The company operates primarily from focus cities including New York, Boston, Fort Lauderdale, Orlando and Los Angeles, with a network designed to connect major metropolitan areas and leisure destinations.

JetBlue offers multiple classes and service options, including standard economy seating, extra-legroom EvenMore seats and its premium Mint service on select routes.

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