Short Interest in United Airlines Holdings Inc (NASDAQ:UAL) Rises By 8,232.3%

Key Points

• Short interest in United Airlines surged by 8,232.3% in July, reaching 13,540,000 shares as of July 15, indicating a significant increase in bearish sentiment towards the stock.
• The company's quarterly earnings topped analysts' estimates with $3.87 EPS, but revenue fell short of expectations at $15.24 billion compared to the anticipated $15.31 billion.
• Analyst ratings are predominantly positive, with thirteen analysts giving a buy rating and a consensus target price set at $111.43, reflecting confidence in United Airlines' future performance.

United Airlines Holdings Inc (NASDAQ:UAL - Get Free Report) saw a large increase in short interest in the month of July. As of July 15th, there was short interest totaling 13,540,000 shares, anincreaseof8,232.3% from the June 30th total of 162,500 shares. Based on an average daily volume of 7,660,000 shares, the short-interest ratio is presently 1.8 days. Currently,4.2% of the shares of the stock are sold short. Currently,4.2% of the shares of the stock are sold short. Based on an average daily volume of 7,660,000 shares, the short-interest ratio is presently 1.8 days.

United Airlines Stock Performance

Shares of NASDAQ:UAL traded down $3.57 during trading on Friday, reaching $84.74. 5,156,178 shares of the stock were exchanged, compared to its average volume of 8,261,986. United Airlines has a 12 month low of $37.02 and a 12 month high of $116.00. The firm has a market cap of $27.43 billion, a PE ratio of 8.50, a PEG ratio of 1.16 and a beta of 1.42. The stock has a 50-day moving average price of $82.46 and a 200-day moving average price of $83.39. The company has a current ratio of 0.70, a quick ratio of 0.65 and a debt-to-equity ratio of 1.56.

United Airlines (NASDAQ:UAL - Get Free Report) last issued its quarterly earnings data on Wednesday, July 16th. The transportation company reported $3.87 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.81 by $0.06. United Airlines had a return on equity of 30.09% and a net margin of 5.71%. The company had revenue of $15.24 billion during the quarter, compared to analysts' expectations of $15.31 billion. During the same quarter in the previous year, the company posted $4.14 earnings per share. The business's revenue was up 1.4% on a year-over-year basis. Research analysts expect that United Airlines will post 12.96 EPS for the current fiscal year.

Wall Street Analyst Weigh In

UAL has been the topic of a number of analyst reports. Barclays reissued an "overweight" rating and issued a $100.00 price target (up previously from $94.00) on shares of United Airlines in a research note on Tuesday, July 15th. Sanford C. Bernstein restated an "outperform" rating on shares of United Airlines in a research report on Tuesday, May 13th. Cowen reaffirmed a "buy" rating on shares of United Airlines in a research note on Tuesday, July 15th. TD Cowen raised their price objective on United Airlines from $101.00 to $127.00 and gave the stock a "buy" rating in a research note on Monday, July 21st. Finally, UBS Group raised their price objective on United Airlines from $103.00 to $114.00 and gave the stock a "buy" rating in a research note on Tuesday, July 15th. Two analysts have rated the stock with a hold rating, thirteen have issued a buy rating and two have assigned a strong buy rating to the company's stock. According to MarketBeat, United Airlines presently has a consensus rating of "Buy" and a consensus target price of $111.43.

Insider Activity

In related news, EVP Torbjorn J. Enqvist sold 20,000 shares of the stock in a transaction that occurred on Friday, July 18th. The stock was sold at an average price of $92.22, for a total transaction of $1,844,400.00. Following the sale, the executive vice president directly owned 62,358 shares in the company, valued at $5,750,654.76. This represents a 24.28% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Michelle Freyre sold 900 shares of the stock in a transaction that occurred on Monday, July 28th. The stock was sold at an average price of $92.13, for a total value of $82,917.00. Following the sale, the director owned 829 shares in the company, valued at approximately $76,375.77. This trade represents a 52.05% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 45,672 shares of company stock worth $4,144,411. Company insiders own 0.71% of the company's stock.

Institutional Investors Weigh In On United Airlines

Several institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. boosted its stake in shares of United Airlines by 1.1% in the first quarter. Vanguard Group Inc. now owns 36,961,616 shares of the transportation company's stock valued at $2,552,200,000 after buying an additional 413,753 shares during the period. Capital International Investors lifted its stake in United Airlines by 6.3% during the fourth quarter. Capital International Investors now owns 21,261,443 shares of the transportation company's stock worth $2,064,825,000 after purchasing an additional 1,257,443 shares during the last quarter. Sanders Capital LLC lifted its stake in United Airlines by 46.4% during the fourth quarter. Sanders Capital LLC now owns 13,848,308 shares of the transportation company's stock worth $1,344,671,000 after purchasing an additional 4,390,721 shares during the last quarter. Capital World Investors lifted its stake in United Airlines by 22.4% during the fourth quarter. Capital World Investors now owns 9,788,405 shares of the transportation company's stock worth $950,461,000 after purchasing an additional 1,791,654 shares during the last quarter. Finally, Geode Capital Management LLC lifted its stake in United Airlines by 2.9% during the fourth quarter. Geode Capital Management LLC now owns 8,554,755 shares of the transportation company's stock worth $840,533,000 after purchasing an additional 243,535 shares during the last quarter. 69.69% of the stock is currently owned by institutional investors.

United Airlines Company Profile

United Airlines Holdings, Inc, through its subsidiaries, provides air transportation services in North America, Asia, Europe, Africa, the Pacific, the Middle East, and Latin America. The company transports people and cargo through its mainline and regional fleets. It also offers catering, ground handling, flight academy, and maintenance services for third parties.

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