United Airlines (NASDAQ:UAL) Posts Earnings Results, Beats Expectations By $0.13 EPS

Key Points

• United Airlines reported earnings of $2.78 per share, exceeding analysts' expectations of $2.65 by $0.13.
• The company's stock price increased by 1.2% to reach $104.37 following the earnings announcement.
• Research firms have raised their price targets for United Airlines, with a consensus target now at $120.64, indicating strong potential growth ahead.

United Airlines (NASDAQ:UAL - Get Free Report) released its earnings results on Wednesday. The transportation company reported $2.78 earnings per share for the quarter, topping analysts' consensus estimates of $2.65 by $0.13, Zacks reports. United Airlines had a return on equity of 30.09% and a net margin of 5.71%.

United Airlines Stock Up 1.2%

Shares of NASDAQ:UAL traded up $1.22 during mid-day trading on Wednesday, reaching $104.37. 6,518,770 shares of the stock were exchanged, compared to its average volume of 7,469,124. The company has a quick ratio of 0.65, a current ratio of 0.70 and a debt-to-equity ratio of 1.56. The company has a market cap of $33.79 billion, a P/E ratio of 10.46, a P/E/G ratio of 1.26 and a beta of 1.45. United Airlines has a one year low of $52.00 and a one year high of $116.00. The stock's 50 day simple moving average is $100.96 and its 200-day simple moving average is $85.39.

Insider Buying and Selling at United Airlines

In related news, President Brett J. Hart sold 24,772 shares of the stock in a transaction dated Friday, July 25th. The stock was sold at an average price of $89.50, for a total transaction of $2,217,094.00. Following the completion of the transaction, the president directly owned 283,638 shares in the company, valued at approximately $25,385,601. This trade represents a 8.03% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Kate Gebo sold 29,953 shares of the firm's stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $97.59, for a total value of $2,923,113.27. Following the completion of the transaction, the executive vice president owned 45,496 shares of the company's stock, valued at approximately $4,439,954.64. This represents a 39.70% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 106,791 shares of company stock valued at $9,992,318 in the last 90 days. 0.63% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. Public Sector Pension Investment Board grew its stake in United Airlines by 57.0% in the second quarter. Public Sector Pension Investment Board now owns 231,078 shares of the transportation company's stock valued at $18,401,000 after purchasing an additional 83,907 shares in the last quarter. Strategic Investment Advisors MI bought a new position in United Airlines in the second quarter valued at approximately $1,981,000. CANADA LIFE ASSURANCE Co grew its stake in United Airlines by 116.2% in the second quarter. CANADA LIFE ASSURANCE Co now owns 170,907 shares of the transportation company's stock valued at $13,624,000 after purchasing an additional 91,863 shares in the last quarter. MUFG Securities EMEA plc bought a new position in United Airlines in the second quarter valued at approximately $77,000. Finally, Corient Private Wealth LLC boosted its stake in shares of United Airlines by 129.3% during the 2nd quarter. Corient Private Wealth LLC now owns 182,457 shares of the transportation company's stock worth $14,529,000 after acquiring an additional 102,877 shares during the period. 69.69% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of research firms recently commented on UAL. Bank of America upped their price objective on United Airlines from $90.00 to $108.00 and gave the company a "buy" rating in a report on Friday, July 18th. Evercore ISI upped their price objective on United Airlines from $105.00 to $135.00 and gave the company an "outperform" rating in a report on Monday, September 29th. Jefferies Financial Group upped their price objective on United Airlines from $115.00 to $125.00 and gave the company a "buy" rating in a report on Wednesday, October 1st. Barclays upped their price objective on United Airlines from $100.00 to $115.00 and gave the company an "overweight" rating in a report on Wednesday, October 1st. Finally, UBS Group upped their price objective on United Airlines from $114.00 to $131.00 and gave the company a "buy" rating in a report on Friday, September 26th. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat, United Airlines presently has a consensus rating of "Buy" and an average price target of $120.64.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.