Traders Purchase Large Volume of JetBlue Airways Call Options (NASDAQ:JBLU)

Key Points

• Traders bought 59,451 call options on JetBlue—an unusually large volume representing a 118% increase versus the stock's average call volume.
• Analysts have cut forecasts and ratings, leaving a MarketBeat consensus of "Reduce" with a consensus price target of $4.88 after multiple downgrades and target cuts.
• JetBlue missed quarterly EPS (‑$0.49 vs. ‑$0.45 expected), shows negative margins and ROE, and trades around $5.04 with a market cap of $1.87 billion while analysts forecast about ‑$0.69 EPS for the year.

JetBlue Airways Corporation (NASDAQ:JBLU - Get Free Report) was the target of some unusual options trading on Thursday. Stock investors bought 59,451 call options on the stock. This represents an increase of 118% compared to the average volume of 27,294 call options.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on JBLU shares. JPMorgan Chase & Co. increased their price target on JetBlue Airways from $5.00 to $6.00 and gave the company a "neutral" rating in a report on Wednesday, January 28th. The Goldman Sachs Group lowered their price target on JetBlue Airways from $4.00 to $3.50 and set a "sell" rating on the stock in a report on Wednesday, April 1st. BMO Capital Markets started coverage on JetBlue Airways in a report on Tuesday, March 24th. They set a "market perform" rating and a $4.50 price target on the stock. UBS Group lowered their price target on JetBlue Airways from $4.00 to $3.50 and set a "sell" rating on the stock in a report on Monday, March 16th. Finally, Citigroup lowered their price target on JetBlue Airways from $6.00 to $4.40 and set a "neutral" rating on the stock in a report on Friday, March 20th. One analyst has rated the stock with a Strong Buy rating, seven have issued a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Reduce" and a consensus price target of $4.88.

Hedge Funds Weigh In On JetBlue Airways

Institutional investors have recently bought and sold shares of the stock. Rockefeller Capital Management L.P. raised its holdings in JetBlue Airways by 157.3% in the 4th quarter. Rockefeller Capital Management L.P. now owns 5,517 shares of the transportation company's stock worth $25,000 after purchasing an additional 3,373 shares during the period. Caitong International Asset Management Co. Ltd raised its holdings in JetBlue Airways by 639.1% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 5,839 shares of the transportation company's stock worth $29,000 after purchasing an additional 5,049 shares during the period. Kestra Advisory Services LLC bought a new position in JetBlue Airways in the 4th quarter worth $30,000. Bogart Wealth LLC raised its holdings in JetBlue Airways by 12,727.3% in the 3rd quarter. Bogart Wealth LLC now owns 7,055 shares of the transportation company's stock worth $35,000 after purchasing an additional 7,000 shares during the period. Finally, Leonteq Securities AG bought a new position in JetBlue Airways in the 4th quarter worth $32,000. 83.71% of the stock is owned by institutional investors.

JetBlue Airways Price Performance

NASDAQ JBLU opened at $5.04 on Thursday. The business's fifty day moving average price is $5.05 and its 200-day moving average price is $4.82. The stock has a market capitalization of $1.87 billion, a price-to-earnings ratio of -3.02 and a beta of 1.75. The company has a debt-to-equity ratio of 3.65, a current ratio of 0.74 and a quick ratio of 0.69. JetBlue Airways has a 1-year low of $3.34 and a 1-year high of $6.50.

JetBlue Airways (NASDAQ:JBLU - Get Free Report) last released its quarterly earnings results on Tuesday, January 27th. The transportation company reported ($0.49) earnings per share for the quarter, missing the consensus estimate of ($0.45) by ($0.04). JetBlue Airways had a negative net margin of 6.64% and a negative return on equity of 25.62%. The firm had revenue of $2.24 billion for the quarter, compared to the consensus estimate of $2.22 billion. During the same period in the previous year, the company earned ($0.21) earnings per share. JetBlue Airways's quarterly revenue was down 1.4% compared to the same quarter last year. On average, equities analysts predict that JetBlue Airways will post -0.69 earnings per share for the current year.

About JetBlue Airways

JetBlue Airways Corporation is a low-cost scheduled passenger airline headquartered in Long Island City, New York. Since commencing service in 2000, the carrier has built a reputation for combining competitive fares with enhanced onboard amenities, including free in-flight entertainment, complimentary snacks and beverages, and onboard Wi-Fi. JetBlue operates a single fleet type of Airbus A320 family and Embraer 190 aircraft, which supports its focus on efficiency and operational consistency.

The airline's core offerings include economy-class travel and a premium business-class product known as Mint, which features lie-flat seats, curated culinary options and elevated service on select transcontinental and international routes.

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