LATAM Airlines Group (NYSE:LTM) Stock Breaks Above 200 Day Moving Average - Should You Sell?

Key Points

• LATAM Airlines Group shares briefly broke above their 200-day moving average of $51.90, reaching $52.16 before last trading at $50.93; the stock was down 1.1% in the session.
• Analysts remain broadly positive, with six Buy ratings and two Holds, an overall “Moderate Buy” consensus, and an average price target of $66.27—though several firms recently downgraded the shares to Hold.
• The company exceeded quarterly expectations, reporting $0.44 EPS versus a $0.41 estimate and $4.12 billion in revenue versus $4.06 billion expected. Several major institutional investors also increased their positions.

LATAM Airlines Group S.A. (NYSE:LTM - Get Free Report)'s stock price passed above its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $51.90 and traded as high as $52.16. LATAM Airlines Group shares last traded at $50.9260, with a volume of 866,005 shares traded.

Analyst Ratings Changes

Several equities analysts have weighed in on LTM shares. JPMorgan Chase & Co. initiated coverage on LATAM Airlines Group in a report on Wednesday, June 3rd. They set an "overweight" rating and a $70.00 price target for the company. Wall Street Zen cut LATAM Airlines Group from a "strong-buy" rating to a "hold" rating in a report on Saturday, August 8th. Jefferies Financial Group initiated coverage on LATAM Airlines Group in a research report on Thursday, June 18th. They set a "buy" rating and a $70.00 target price for the company. Zacks Research lowered shares of LATAM Airlines Group from a "strong-buy" rating to a "hold" rating in a report on Monday, August 17th. Finally, Weiss Ratings cut shares of LATAM Airlines Group from a "hold (c)" rating to a "hold (c-)" rating in a research report on Friday. Six equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, LATAM Airlines Group presently has an average rating of "Moderate Buy" and an average price target of $66.27.

LATAM Airlines Group Trading Down 1.1%

The company has a market capitalization of $14.62 billion, a PE ratio of 9.36, a price-to-earnings-growth ratio of 1.24 and a beta of 3.64. The stock's 50-day moving average is $52.28 and its two-hundred day moving average is $51.90.

LATAM Airlines Group (NYSE:LTM - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The transportation company reported $0.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.41 by $0.03. The business had revenue of $4.12 billion during 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%. On average, equities research analysts forecast that LATAM Airlines Group S.A. will post 4.96 EPS for the current fiscal year.

Hedge Funds Weigh In On LATAM Airlines Group

A number of large investors have recently bought and sold shares of the business. Renaissance Technologies LLC increased its stake in LATAM Airlines Group by 184.9% in the first quarter. Renaissance Technologies LLC now owns 1,267,200 shares of the transportation company's stock worth $62,650,000 after purchasing an additional 822,400 shares during the period. SPX Gestao de Recursos Ltda grew its holdings in shares of LATAM Airlines Group by 168.5% in the first quarter. SPX Gestao de Recursos Ltda now owns 881,976 shares of the transportation company's stock worth $43,605,000 after purchasing an additional 553,513 shares during the last quarter. Bank of America Corp DE grew its holdings in shares of LATAM Airlines Group by 641.9% in the first quarter. Bank of America Corp DE now owns 346,402 shares of the transportation company's stock worth $17,126,000 after purchasing an additional 299,710 shares during the last quarter. Navi International Administradora e Gestora de Recursos Financeiros Ltda. increased its stake in LATAM Airlines Group by 1,478.6% in the 2nd quarter. Navi International Administradora e Gestora de Recursos Financeiros Ltda. now owns 326,007 shares of the transportation company's stock worth $18,996,000 after buying an additional 305,355 shares during the period. Finally, Dimensional Fund Advisors LP lifted its holdings in LATAM Airlines Group by 4.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 237,965 shares of the transportation company's stock valued at $11,750,000 after buying an additional 9,448 shares in the last quarter.

About LATAM Airlines Group

LATAM Airlines Group SA is a Chile-based airline holding company and one of the largest air transportation groups in Latin America. Through its LATAM Airlines affiliates, the group provides scheduled passenger and cargo air services to domestic and international destinations.

The company serves markets across South America, including Chile, Brazil, Colombia, Ecuador, and Peru, as well as destinations in North America, the Caribbean, Europe, and Oceania. Its operations include domestic routes within several Latin American countries, international passenger services, and air freight transportation.

LATAM Airlines Group was created in 2012 through the merger of Chile's LAN Airlines and Brazil's TAM Airlines.

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