LATAM Airlines Group (NYSE:LTM) Shares Gap Up - Still a Buy?

Key Points

• LATAM Airlines shares opened higher, rising from a previous close of $49.29 to $50.99 and last trading near $51.33.
• Analyst sentiment remains favorable overall, with six Buy ratings and two Holds producing a “Moderate Buy” consensus and an average price target of $66.27, although two research firms recently downgraded the stock to Hold.
• LATAM exceeded quarterly expectations, reporting $0.44 in EPS versus $0.41 expected and $4.12 billion in revenue versus $4.06 billion forecast; several institutional investors also increased their positions.

LATAM Airlines Group S.A. (NYSE:LTM - Get Free Report)'s stock price gapped up before the market opened on Wednesday . The stock had previously closed at $49.29, but opened at $50.99. LATAM Airlines Group shares last traded at $51.3270, with a volume of 54,204 shares trading hands.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on the company. JPMorgan Chase & Co. started coverage on LATAM Airlines Group in a research note on Wednesday, June 3rd. They issued an "overweight" rating and a $70.00 target price on the stock. Wall Street Zen lowered LATAM Airlines Group from a "strong-buy" rating to a "hold" rating in a research report on Saturday, August 8th. Zacks Research cut shares of LATAM Airlines Group from a "strong-buy" rating to a "hold" rating in a research note on Monday, August 17th. Jefferies Financial Group assumed coverage on shares of LATAM Airlines Group in a research report on Thursday, June 18th. They set a "buy" rating and a $70.00 price objective on the stock. Finally, The Goldman Sachs Group restated a "buy" rating and set a $72.60 price objective on shares of LATAM Airlines Group in a research note on Tuesday, May 12th. Six research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $66.27.

LATAM Airlines Group Price Performance

The company has a 50-day moving average price of $53.84 and a 200 day moving average price of $52.39. The firm has a market capitalization of $14.77 billion, a PE ratio of 9.46, a P/E/G ratio of 1.32 and a beta of 3.62.

LATAM Airlines Group (NYSE:LTM - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The transportation company reported $0.44 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.41 by $0.03. The company had revenue of $4.12 billion for the quarter, compared to the consensus estimate of $4.06 billion. LATAM Airlines Group had a net margin of 9.69% and a return on equity of 101.21%. As a group, research analysts anticipate that LATAM Airlines Group S.A. will post 4.52 earnings per share for the current year.

Hedge Funds Weigh In On LATAM Airlines Group

Several institutional investors have recently made changes to their positions in the company. AQR Capital Management LLC purchased a new position in LATAM Airlines Group during the 1st quarter valued at about $3,061,000. Goldman Sachs Group Inc. lifted its position in shares of LATAM Airlines Group by 133.9% during the first quarter. Goldman Sachs Group Inc. now owns 40,258 shares of the transportation company's stock valued at $1,259,000 after buying an additional 23,044 shares during the last quarter. Rhumbline Advisers lifted its position in shares of LATAM Airlines Group by 113.8% during the first quarter. Rhumbline Advisers now owns 3,194 shares of the transportation company's stock valued at $100,000 after buying an additional 1,700 shares during the last quarter. Quantbot Technologies LP bought a new stake in shares of LATAM Airlines Group in the 2nd quarter valued at about $402,000. Finally, First Trust Advisors LP boosted its holdings in shares of LATAM Airlines Group by 149.1% in the 2nd quarter. First Trust Advisors LP now owns 69,108 shares of the transportation company's stock valued at $2,809,000 after buying an additional 41,363 shares in the last quarter.

About LATAM Airlines Group

LATAM Airlines Group SA is a Chilean-based airline holding company formed in 2012 through the merger of LAN Airlines of Chile and TAM Linhas Aéreas of Brazil. The Group offers passenger and cargo air transportation services across South America and beyond, operating under a multi‐brand strategy that encompasses several nationally recognized carriers. Headquartered in Santiago, Chile, LATAM is structured to serve diverse market segments with full-service, premium and low‐cost offerings.

The core business activities of LATAM Airlines Group include scheduled domestic and international passenger flights, air cargo services and maintenance, repair and overhaul (MRO) capabilities through its technical divisions.

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