Spirit Airlines, Inc. (SAVE) Stock Rating Upgraded by Zacks Investment Research
Spirit Airlines, Inc. (NASDAQ:SAVE) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued on Friday.
According to Zacks, “Shares of Spirit Airlines have underperformed its industry on a year-to-date basis due to multiple headwinds including the recent hurricanes. The carrier performed impressively in the third quarter of 2017, despite disruptions caused by the hurricanes, reporting better-than-expected earnings per share and revenues. The bottom line however, plunged 24.2% on a year-over-year basis, due to high costs. The decrease in load factor in the third quarter of 2017, due to capacity overexpansion, is an added concern. Spirit Airlines' guidance for fourth-quarter TRASM is also disappointing. The carrier's efforts to modernize its fleet, however, raise optimism. Efforts to reward stockholders through share buybacks are impressive.”
Other equities analysts have also issued reports about the stock. Cowen and Company reiterated a “hold” rating and issued a $37.00 price target on shares of Spirit Airlines in a research note on Tuesday, October 17th. Morgan Stanley reiterated an “equal weight” rating and issued a $60.00 price target (down from $61.00) on shares of Spirit Airlines in a research note on Thursday, July 13th. Stifel Nicolaus reiterated a “buy” rating and issued a $55.00 price target (down from $75.00) on shares of Spirit Airlines in a research note on Sunday, July 30th. Bank of America Corporation downgraded Spirit Airlines from a “buy” rating to a “neutral” rating and decreased their price objective for the company from $68.00 to $44.00 in a report on Friday, July 28th. Finally, J P Morgan Chase & Co raised Spirit Airlines from a “neutral” rating to an “overweight” rating and decreased their price objective for the company from $56.00 to $45.00 in a report on Tuesday, August 1st. Two equities research analysts have rated the stock with a sell rating, ten have assigned a hold rating and three have issued a buy rating to the stock. Spirit Airlines has an average rating of “Hold” and a consensus price target of $41.00.
Shares of Spirit Airlines (NASDAQ:SAVE) traded up $0.87 during trading on Friday, reaching $35.82. 1,238,700 shares of the company’s stock traded hands, compared to its average volume of 2,169,113. The stock has a market capitalization of $2,484.94, a price-to-earnings ratio of 10.66, a P/E/G ratio of 1.46 and a beta of 0.71. Spirit Airlines has a one year low of $30.32 and a one year high of $60.40. The company has a debt-to-equity ratio of 0.77, a current ratio of 1.88 and a quick ratio of 1.88.
Spirit Airlines (NASDAQ:SAVE) last announced its quarterly earnings results on Thursday, October 26th. The transportation company reported $0.94 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.90 by $0.04. The company had revenue of $687.20 million for the quarter, compared to analyst estimates of $686.13 million. Spirit Airlines had a net margin of 8.55% and a return on equity of 15.86%. The firm’s revenue was up 10.6% on a year-over-year basis. During the same period in the prior year, the firm posted $1.24 earnings per share. sell-side analysts predict that Spirit Airlines will post 3.08 earnings per share for the current year.
Spirit Airlines declared that its board has initiated a stock buyback program on Thursday, October 26th that allows the company to repurchase $100.00 million in shares. This repurchase authorization allows the transportation company to buy shares of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s board believes its stock is undervalued.
In other Spirit Airlines news, Director H. Mcintyre Gardner acquired 5,000 shares of the business’s stock in a transaction on Friday, September 15th. The stock was purchased at an average price of $33.78 per share, for a total transaction of $168,900.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 0.33% of the company’s stock.
Several hedge funds have recently made changes to their positions in SAVE. Principal Financial Group Inc. increased its position in shares of Spirit Airlines by 26.0% in the first quarter. Principal Financial Group Inc. now owns 11,995 shares of the transportation company’s stock valued at $637,000 after buying an additional 2,473 shares in the last quarter. Teachers Advisors LLC increased its position in shares of Spirit Airlines by 34.7% in the first quarter. Teachers Advisors LLC now owns 103,922 shares of the transportation company’s stock valued at $5,515,000 after buying an additional 26,798 shares in the last quarter. Legal & General Group Plc increased its position in shares of Spirit Airlines by 464.7% in the first quarter. Legal & General Group Plc now owns 18,958 shares of the transportation company’s stock valued at $1,006,000 after buying an additional 15,601 shares in the last quarter. Morgan Stanley increased its position in shares of Spirit Airlines by 11.6% in the first quarter. Morgan Stanley now owns 111,781 shares of the transportation company’s stock valued at $5,932,000 after buying an additional 11,622 shares in the last quarter. Finally, BlackRock Inc. increased its position in shares of Spirit Airlines by 7,002.6% in the first quarter. BlackRock Inc. now owns 2,691,469 shares of the transportation company’s stock valued at $142,838,000 after buying an additional 2,653,575 shares in the last quarter. Institutional investors and hedge funds own 95.44% of the company’s stock.
About Spirit Airlines
Spirit Airlines, Inc is an airline company. The Company provides air transportation for passengers. As of December 31, 2016, its all-Airbus Fit Fleet operated over 420 daily flights to 59 destinations in the United States, Caribbean and Latin America. As of December 31, 2016, it had a fleet of 95 Airbus single-aisle aircraft, which are referred to as A320 family aircraft and include the A319, A320 and A321 models, which have common design and equipment but differ most notably in fuselage length, service range and seat capacity.
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