United Airlines (NASDAQ:UAL) Shares Gap Up - Here's Why

Key Points

• United Airlines' stock price opened significantly higher on Thursday, starting at $103.61 after closing at $98.09, with a last-traded price of $102.56.
• Analysts have boost their target prices for United Airlines, with JPMorgan raising its target from $122 to $149, indicating strong market confidence.
• Despite recent strong earnings results, insiders have sold over 106,000 shares in the last 90 days, representing a potential concern about insider sentiment.

United Airlines Holdings Inc (NASDAQ:UAL - Get Free Report)'s stock price gapped up prior to trading on Thursday . The stock had previously closed at $98.09, but opened at $103.61. United Airlines shares last traded at $102.56, with a volume of 1,778,318 shares traded.

Analysts Set New Price Targets

A number of equities analysts have issued reports on the company. JPMorgan Chase & Co. increased their price objective on United Airlines from $122.00 to $149.00 and gave the stock an "overweight" rating in a report on Friday, September 12th. Barclays increased their target price on United Airlines from $100.00 to $115.00 and gave the stock an "overweight" rating in a research note on Wednesday, October 1st. Cowen reissued a "buy" rating on shares of United Airlines in a research note on Tuesday, July 15th. Wall Street Zen cut United Airlines from a "buy" rating to a "hold" rating in a research note on Friday, July 18th. Finally, Weiss Ratings cut United Airlines from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Buy" and a consensus target price of $120.64.

United Airlines Price Performance

The company has a debt-to-equity ratio of 1.56, a current ratio of 0.70 and a quick ratio of 0.65. The company has a market capitalization of $32.81 billion, a PE ratio of 10.15, a PEG ratio of 1.23 and a beta of 1.45. The firm has a 50-day moving average of $99.90 and a 200 day moving average of $84.67.

United Airlines (NASDAQ:UAL - Get Free Report) last posted its earnings results on Wednesday, July 16th. The transportation company reported $3.87 earnings per share for the quarter, beating 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 for the quarter, compared to the consensus estimate of $15.31 billion. During the same quarter in the prior year, the company earned $4.14 earnings per share. United Airlines's revenue was up 1.4% on a year-over-year basis. United Airlines has set its FY 2025 guidance at 9.000-11.000 EPS. As a group, research analysts anticipate that United Airlines Holdings Inc will post 12.96 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, EVP Kate Gebo sold 29,953 shares of the firm's stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $97.59, for a total value of $2,923,113.27. Following the transaction, the executive vice president owned 45,496 shares of the company's stock, valued at $4,439,954.64. This trade represents a 39.70% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Barney Harford sold 15,823 shares of the firm's stock in a transaction dated Friday, August 8th. The stock was sold at an average price of $90.03, for a total value of $1,424,544.69. Following the completion of the transaction, the director directly owned 89,000 shares in the company, valued at $8,012,670. This trade represents a 15.09% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 106,791 shares of company stock valued at $9,992,318 in the last 90 days. Insiders own 0.71% of the company's stock.

Institutional Trading of United Airlines

Several institutional investors and hedge funds have recently added to or reduced their stakes in UAL. Hemington Wealth Management raised its stake in United Airlines by 50.6% during the 1st quarter. Hemington Wealth Management now owns 476 shares of the transportation company's stock valued at $32,000 after purchasing an additional 160 shares during the period. WPG Advisers LLC purchased a new position in United Airlines during the 1st quarter valued at approximately $32,000. Eastern Bank purchased a new position in United Airlines during the 1st quarter valued at approximately $35,000. Banque Transatlantique SA purchased a new position in United Airlines during the 1st quarter valued at approximately $35,000. Finally, Strategic Investment Solutions Inc. IL grew its holdings in United Airlines by 44.0% during the 2nd quarter. Strategic Investment Solutions Inc. IL now owns 579 shares of the transportation company's stock valued at $46,000 after buying an additional 177 shares in the last quarter. Institutional investors own 69.69% of the company's stock.

About United Airlines

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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