TD Cowen Issues Pessimistic Forecast for United Airlines (NASDAQ:UAL) Stock Price

Key Points

• TD Cowen lowered United Airlines’ price target from $205 to $192 while maintaining a “buy” rating, implying 69.1% upside from the stock’s previous close.
• United shares traded at $113.54, below their 50-day moving average of $124.00 but above the 200-day average of $108.55. Despite the target cut, analysts overall maintain a “Moderate Buy” consensus with an average price target of $157.74.
• United beat quarterly expectations with $1.99 in adjusted EPS versus $1.88 expected and revenue of $17.67 billion, up 16.4% year over year. Executives sold shares primarily to cover tax withholding obligations tied to equity awards.

United Airlines (NASDAQ:UAL - Get Free Report) had its price target lowered by equities research analysts at TD Cowen from $205.00 to $192.00 in a research note issued to investors on Monday,Benzinga reports. The firm currently has a "buy" rating on the transportation company's stock. TD Cowen's target price suggests a potential upside of 69.10% from the company's previous close.

UAL has been the subject of a number of other research reports. Citigroup increased their price objective on shares of United Airlines from $132.00 to $171.00 and gave the stock a "buy" rating in a research report on Monday, June 22nd. Wall Street Zen lowered United Airlines from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. Zacks Research upgraded United Airlines from a "strong sell" rating to a "hold" rating in a report on Thursday, June 11th. Jefferies Financial Group reissued a "buy" rating and set a $155.00 target price on shares of United Airlines in a research note on Sunday, July 19th. Finally, The Goldman Sachs Group raised their target price on United Airlines from $131.00 to $162.00 and gave the company a "buy" rating in a report on Thursday, July 2nd. Sixteen analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, United Airlines presently has an average rating of "Moderate Buy" and an average price target of $157.74.

United Airlines Trading Up 0.3%

Shares of NASDAQ UAL traded up $0.37 during mid-day trading on Monday, reaching $113.54. 677,756 shares of the company's stock were exchanged, compared to its average volume of 6,073,365. The company's 50-day moving average is $124.00 and its 200-day moving average is $108.55. The company has a debt-to-equity ratio of 1.45, a quick ratio of 0.72 and a current ratio of 0.78. The firm has a market capitalization of $36.85 billion, a price-to-earnings ratio of 10.63, a PEG ratio of 0.87 and a beta of 1.28. United Airlines has a 52-week low of $84.64 and a 52-week high of $138.77.

United Airlines (NASDAQ:UAL - Get Free Report) last issued its quarterly earnings data on Wednesday, July 15th. The transportation company reported $1.99 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.88 by $0.11. The firm had revenue of $17.67 billion for the quarter, compared to analyst estimates of $17.62 billion. United Airlines had a net margin of 5.56% and a return on equity of 19.05%. United Airlines's revenue was up 16.4% on a year-over-year basis. During the same period in the previous year, the firm earned $3.87 EPS. United Airlines has set its FY 2026 guidance at 9.000-11.000 EPS. Analysts expect that United Airlines will post 10.38 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, President Brett J. Hart sold 30,108 shares of United Airlines stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $120.72, for a total value of $3,634,637.76. Following the completion of the transaction, the president directly owned 371,583 shares in the company, valued at approximately $44,857,499.76. This trade represents a 7.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Andrew P. Nocella sold 4,200 shares of the business's stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $120.48, for a total value of $506,016.00. Following the transaction, the executive vice president directly owned 222,955 shares of the company's stock, valued at $26,861,618.40. The trade was a 1.85% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 306,010 shares of company stock valued at $35,949,843. Corporate insiders own 0.86% of the company's stock.

Hedge Funds Weigh In On United Airlines

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Legacy Wealth Managment LLC ID purchased a new stake in shares of United Airlines during the fourth quarter worth approximately $25,000. Dunhill Financial LLC purchased a new position in United Airlines in the second quarter worth approximately $25,000. Western Wealth Management LLC acquired a new position in United Airlines during the 1st quarter worth approximately $27,000. Elevation Wealth Partners LLC grew its holdings in 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 acquiring an additional 169 shares in the last quarter. Finally, Trust Co. of Vermont purchased a new stake in shares of United Airlines in the 2nd quarter valued at approximately $29,000. Hedge funds and other institutional investors own 69.69% of the company's stock.

About United Airlines

United Airlines Holdings, Inc operates United Airlines, a major U.S. full-service passenger carrier providing scheduled air transportation for passengers and cargo. The company offers a comprehensive route network that covers domestic markets across the United States as well as extensive international service to Europe, Asia, Latin America, and the Pacific. United operates a mixed fleet of narrow- and wide-body aircraft on point-to-point and hub-and-spoke routes, and supports corporate and leisure travel through offerings such as premium cabins, basic economy, and ancillary services including baggage, seat selection and in-flight amenities.

In addition to passenger operations, United provides cargo services through United Cargo, handling freight, mail and specialized shipments.

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