United Airlines (NASDAQ:UAL) Shares Gap Up - Here's What Happened

Key Points

• United Airlines shares jumped 5.5%, opening at $108.96 versus a prior close of $104.24 and later trading near $111.28.
• Analyst sentiment remains broadly positive: 16 analysts rate the stock a Buy, with an average “Moderate Buy” rating and a consensus price target of $156.19, despite some recent downgrades and target cuts.
• United slightly missed quarterly expectations, reporting $2.54 in EPS versus $2.57 expected and $17.88 billion in revenue versus $17.89 billion forecast; revenue nevertheless grew 17.4% year over year.

Shares of United Airlines Holdings Inc (NASDAQ:UAL - Get Free Report) gapped up before the market opened on Monday. The stock had previously closed at $104.24, but opened at $108.96. United Airlines shares last traded at $111.2820, with a volume of 1,711,271 shares changing hands.

Wall Street Analysts Forecast Growth

UAL has been the subject of several analyst reports. Wall Street Zen downgraded shares of United Airlines from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. Zacks Research cut United Airlines from a "hold" rating to a "strong sell" rating in a report on Monday, September 28th. Wells Fargo & Company decreased their price target on shares of United Airlines from $160.00 to $155.00 and set an "overweight" rating on the stock in a research note on Thursday, October 22nd. Argus dropped their price target on United Airlines from $140.00 to $125.00 and set a "buy" rating on the stock in a research note on Thursday, October 22nd. Finally, JPMorgan Chase & Co. lifted their price objective on shares of United Airlines from $156.00 to $203.00 and gave the stock an "overweight" rating in a research report on Friday, July 17th. Sixteen analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, United Airlines has an average rating of "Moderate Buy" and an average target price of $156.19.

United Airlines Stock Up 5.5%

The stock's 50-day moving average price is $107.65 and its two-hundred day moving average price is $108.27. The stock has a market capitalization of $35.74 billion, a PE ratio of 10.08, a P/E/G ratio of 1.32 and a beta of 1.38. The company has a debt-to-equity ratio of 1.38, a quick ratio of 0.68 and a current ratio of 0.75.

United Airlines (NASDAQ:UAL - Get Free Report) last released its quarterly earnings results on Tuesday, October 20th. The transportation company reported $2.54 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.57 by ($0.03). United Airlines had a net margin of 5.46% and a return on equity of 17.59%. The company had revenue of $17.88 billion for the quarter, compared to the consensus estimate of $17.89 billion. During the same period in the prior year, the firm posted $2.78 EPS. The business's revenue for the quarter was up 17.4% on a year-over-year basis. As a group, analysts expect that United Airlines Holdings Inc will post 7.17 EPS for the current fiscal year.

Insider Buying and Selling

In related news, EVP Andrew Nocella sold 5,000 shares of the company's stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $117.00, for a total transaction of $585,000.00. Following the completion of the transaction, the executive vice president owned 214,955 shares in the company, valued at $25,149,735. This represents a 2.27% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 0.86% of the company's stock.

Institutional Investors Weigh In On United Airlines

Hedge funds have recently made changes to their positions in the business. Dunhill Financial LLC acquired a new stake in United Airlines in the second quarter valued at $25,000. Elevation Wealth Partners LLC lifted its stake in shares of United Airlines by 393.0% during the 2nd quarter. Elevation Wealth Partners LLC now owns 212 shares of the transportation company's stock worth $29,000 after purchasing an additional 169 shares during the period. Trust Co. of Vermont acquired a new position in United Airlines in the second quarter valued at $29,000. Rakuten Securities Inc. acquired a new stake in shares of United Airlines in the second quarter valued at about $32,000. Finally, NBH Bank bought a new stake in shares of United Airlines in the second quarter worth $35,000. Institutional investors and hedge funds own 69.69% of the company's stock.

About United Airlines

United Airlines Holdings, Inc is the parent company of United Airlines, a major U.S. commercial airline headquartered in Chicago, Illinois. The company provides scheduled passenger air transportation and air cargo services, connecting customers across the United States and to international destinations.

United operates a broad network serving North America, Latin America, Europe, Asia, Africa and Oceania. Its operations are supported by hubs in major U.S. cities, including Chicago, Denver, Houston, Los Angeles, Newark, San Francisco and Washington, DC, as well as an extensive network of regional carriers operating under the United Express brand.

The company offers several travel classes and related services, including premium-cabin seating, onboard amenities, airport lounges and the MileagePlus customer loyalty program.

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