United Airlines (NASDAQ:UAL) Stock Price Breaks Above Two Hundred Day Moving Average - Here's What Happened

Key Points

• United Airlines shares rose 4.8% and broke above their 200-day moving average of $108.24, reaching as high as $112.01 on heavy trading volume.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $156.19, despite several firms recently lowering their targets and Zacks issuing a “Strong Sell” rating.
• United reported quarterly EPS of $2.54, slightly below the $2.57 consensus estimate, while revenue of $17.88 billion was essentially in line with expectations and increased 17.4% year over year.

Shares of United Airlines Holdings Inc (NASDAQ:UAL - Get Free Report) crossed above its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $108.24 and traded as high as $112.01. United Airlines shares last traded at $109.24, with a volume of 6,618,314 shares changing hands.

Analysts Set New Price Targets

Several equities research analysts have commented on the company. BMO Capital Markets lowered their price objective on United Airlines from $140.00 to $135.00 and set an "outperform" rating on the stock in a research report on Thursday, October 22nd. Zacks Research lowered shares of United Airlines from a "hold" rating to a "strong sell" rating in a report on Monday, September 28th. Jefferies Financial Group reaffirmed a "buy" rating and set a $142.00 target price on shares of United Airlines in a report on Wednesday, October 21st. Argus decreased their target price on shares of United Airlines from $140.00 to $125.00 and set a "buy" rating for the company in a research note on Thursday, October 22nd. Finally, Evercore reissued an "outperform" rating and set a $160.00 price target on shares of United Airlines in a report on Wednesday, October 21st. Sixteen investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, United Airlines presently has a consensus rating of "Moderate Buy" and a consensus price target of $156.19.

United Airlines Stock Up 4.8%

The company has a market cap of $35.49 billion, a price-to-earnings ratio of 9.99, a PEG ratio of 1.31 and a beta of 1.30. The company has a current ratio of 0.75, a quick ratio of 0.68 and a debt-to-equity ratio of 1.38. The business has a fifty day moving average of $107.57 and a two-hundred day moving average of $108.24.

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

Insider Transactions at United Airlines

In related news, EVP Andrew Nocella sold 5,000 shares of the business's stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $117.00, for a total value of $585,000.00. Following the completion of the sale, the executive vice president owned 214,955 shares of the company's stock, valued at approximately $25,149,735. The trade was a 2.27% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 0.86% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Primecap Management Co. CA purchased a new stake in shares of United Airlines during the second quarter worth $2,238,617,000. International Assets Investment Management LLC raised its position in shares of United Airlines by 7,757.6% in the third quarter. International Assets Investment Management LLC now owns 1,426,000 shares of the transportation company's stock valued at $158,215,000 after buying an additional 1,407,852 shares during the last quarter. Deutsche Bank AG acquired a new stake in shares of United Airlines in the second quarter valued at about $178,571,000. Bank of New York Mellon Corp purchased a new position in shares of United Airlines in the second quarter worth about $178,508,000. Finally, Bank of America Corp DE purchased a new position in shares of United Airlines in the second quarter worth about $153,537,000. 69.69% of the stock is owned by hedge funds and other institutional investors.

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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