JetBlue Airways (JBLU) Cut to Sell at Zacks Investment Research
According to Zacks, “We expect JetBlue to struggle on the unit revenue front in the first quarter of 2019, detailed results of which will be out on Apr 23. Earlier in April, the carrier adjusted its guidance for first-quarter operating revenue per available seat mile (RASM : a key measure of unit revenue). The metric is expected to decline 3.1%, with higher-than-expected completion factor hurting RASM to the tune of approximately 0.75 points. Previously, RASM in the soon-to-be-reported quarter was anticipated to decline 1.5-3.5%. Moreover, high labor costs might affect JetBlue's bottom line growth. Additionally, capacity overexpansion is another cause for cocern. The southward movement of the Zacks Consensus Estimate for first-quarter earnings reveals the negative sentiment surrounding the stock. However, we are impressed by the carrier's initiatives to reward shareholders. The company's efforts to modernize its fleet are also encouraging.”
A number of other equities analysts have also weighed in on JBLU. Imperial Capital restated an outperform rating and set a $25.00 target price (down previously from $27.00) on shares of JetBlue Airways in a research report on Wednesday, January 9th. JPMorgan Chase & Co. lowered shares of JetBlue Airways from an overweight rating to a neutral rating and set a $18.00 target price for the company. in a research report on Thursday, January 10th. Vertical Research assumed coverage on shares of JetBlue Airways in a research report on Monday, February 4th. They set a hold rating and a $19.00 price objective for the company. Credit Suisse Group reiterated a hold rating and set a $17.00 price objective on shares of JetBlue Airways in a research report on Thursday, February 7th. Finally, ValuEngine lowered shares of JetBlue Airways from a hold rating to a sell rating in a research report on Friday, February 15th. Five investment analysts have rated the stock with a sell rating, nine have given a hold rating and three have given a buy rating to the company’s stock. The company has a consensus rating of Hold and an average target price of $19.45.
JetBlue Airways (NASDAQ:JBLU) last issued its earnings results on Thursday, January 24th. The transportation company reported $0.50 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.43 by $0.07. JetBlue Airways had a net margin of 2.44% and a return on equity of 10.92%. The firm had revenue of $1.97 billion during the quarter, compared to analyst estimates of $1.95 billion. During the same quarter in the prior year, the business earned $2.08 earnings per share. JetBlue Airways’s revenue for the quarter was up 11.9% on a year-over-year basis. Research analysts anticipate that JetBlue Airways will post 1.87 earnings per share for the current year.
In other JetBlue Airways news, CEO Robin Hayes sold 2,500 shares of the stock in a transaction on Monday, March 11th. The shares were sold at an average price of $15.92, for a total transaction of $39,800.00. Following the completion of the transaction, the chief executive officer now owns 455,576 shares in the company, valued at $7,252,769.92. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders have sold 7,500 shares of company stock valued at $127,275 in the last quarter. 0.63% of the stock is owned by company insiders.
Institutional investors and hedge funds have recently made changes to their positions in the company. Mackay Shields LLC raised its stake in shares of JetBlue Airways by 784.6% in the fourth quarter. Mackay Shields LLC now owns 792,055 shares of the transportation company’s stock valued at $12,720,000 after acquiring an additional 702,514 shares during the period. Enlightenment Research LLC purchased a new stake in shares of JetBlue Airways in the fourth quarter valued at $47,000. Mirae Asset Global Investments Co. Ltd. raised its stake in shares of JetBlue Airways by 154.5% in the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 35,706 shares of the transportation company’s stock valued at $573,000 after acquiring an additional 21,676 shares during the period. Flagship Harbor Advisors LLC raised its stake in shares of JetBlue Airways by 13.1% in the fourth quarter. Flagship Harbor Advisors LLC now owns 7,145 shares of the transportation company’s stock valued at $114,000 after acquiring an additional 830 shares during the period. Finally, Stamos Capital Partners L.P. purchased a new stake in shares of JetBlue Airways in the fourth quarter valued at $313,000. 91.49% of the stock is currently owned by institutional investors and hedge funds.
About JetBlue Airways
JetBlue Airways Corporation, a passenger carrier company, provides air transportation services. As of December 31, 2018, the company operated a fleet of 63 Airbus A321 aircraft, 130 Airbus A320 aircraft, and 60 Embraer E190 aircraft. It also served 105 destinations in the 31 states in the United States, the District of Columbia, the Commonwealth of Puerto Rico, the U.S.
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