United Airlines (NASDAQ:UAL) Shares Up 8.4% - Still a Buy?

Key Points

• United Airlines shares surged by 8.4% to reach a trading price of $96.85, following a significant decline in trading volume compared to average levels.
• A consensus rating of “Buy” has been maintained by analysts, with thirteen firms providing buy ratings and an average target price of $111.43.
• Despite reporting earnings per share of $3.87, exceeding estimates, the company's revenue decreased slightly year-over-year to $15.24 billion.

United Airlines Holdings Inc (NASDAQ:UAL - Get Free Report) was up 8.4% during mid-day trading on Tuesday . The stock traded as high as $96.10 and last traded at $96.85. Approximately 3,918,577 shares were traded during mid-day trading, a decline of 52% from the average daily volume of 8,088,783 shares. The stock had previously closed at $89.33.

Wall Street Analyst Weigh In

UAL has been the topic of several recent research reports. Cantor Fitzgerald set a $88.00 price target on shares of United Airlines in a report on Tuesday, April 22nd. UBS Group increased their price objective on shares of United Airlines from $103.00 to $114.00 and gave the company a "buy" rating in a report on Tuesday, July 15th. Sanford C. Bernstein reiterated an "outperform" rating on shares of United Airlines in a report on Tuesday, May 13th. Evercore ISI reiterated an "outperform" rating and issued a $105.00 price objective on shares of United Airlines in a report on Thursday, July 17th. Finally, Cowen restated a "buy" rating on shares of United Airlines in a report on Tuesday, July 15th. Two investment 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 stock. According to data from MarketBeat, the stock has a consensus rating of "Buy" and an average target price of $111.43.

United Airlines Stock Performance

The stock's 50 day moving average price is $84.58 and its 200 day moving average price is $82.38. The firm has a market cap of $31.85 billion, a PE ratio of 9.86, a P/E/G ratio of 1.27 and a beta of 1.48. 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 posted its quarterly earnings results on Wednesday, July 16th. The transportation company reported $3.87 EPS for the quarter, beating the consensus estimate of $3.81 by $0.06. United Airlines had a net margin of 5.71% and a return on equity of 30.09%. The business had revenue of $15.24 billion during the quarter, compared to analyst estimates of $15.31 billion. During the same period in the previous year, the business posted $4.14 EPS. The company's quarterly revenue was up 1.4% on a year-over-year basis. As a group, equities analysts forecast that United Airlines Holdings Inc will post 12.96 earnings per share for the current fiscal year.

Insider Buying and Selling at United Airlines

In related news, EVP Torbjorn J. Enqvist sold 20,000 shares of the company's stock in a transaction on Friday, July 18th. The shares were sold at an average price of $92.22, for a total transaction of $1,844,400.00. Following the completion of the transaction, 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 document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Michelle Freyre sold 900 shares of the business's stock in a transaction on Monday, July 28th. The shares were sold at an average price of $92.13, for a total transaction of $82,917.00. Following the completion of the sale, the director directly owned 829 shares in the company, valued at $76,375.77. This trade represents a 52.05% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 70,495 shares of company stock valued at $6,448,796 over the last three months. 0.71% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Wahed Invest LLC increased its stake in United Airlines by 5.4% during the 4th quarter. Wahed Invest LLC now owns 2,106 shares of the transportation company's stock worth $204,000 after purchasing an additional 108 shares in the last quarter. Rosenberg Matthew Hamilton grew its stake in shares of United Airlines by 14.2% during the 2nd quarter. Rosenberg Matthew Hamilton now owns 935 shares of the transportation company's stock worth $74,000 after acquiring an additional 116 shares in the last quarter. Pinnacle Associates Ltd. grew its stake in shares of United Airlines by 1.1% during the 2nd quarter. Pinnacle Associates Ltd. now owns 10,286 shares of the transportation company's stock worth $819,000 after acquiring an additional 116 shares in the last quarter. AXA S.A. grew its stake in shares of United Airlines by 0.8% in the second quarter. AXA S.A. now owns 15,465 shares of the transportation company's stock valued at $1,231,000 after buying an additional 121 shares in the last quarter. Finally, Parkside Financial Bank & Trust grew its stake in shares of United Airlines by 8.8% in the second quarter. Parkside Financial Bank & Trust now owns 1,759 shares of the transportation company's stock valued at $140,000 after buying an additional 143 shares in the last quarter. Institutional investors and hedge funds 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.