United Airlines (NASDAQ:UAL) Hits New 1-Year High on Better-Than-Expected Earnings

United Airlines Holdings, Inc. (NASDAQ:UAL) hit a new 52-week high during mid-day trading on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $116.72 and last traded at $114.24, with a volume of 188814 shares trading hands. The stock had previously closed at $110.52.

The transportation company reported $3.26 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.96 by $0.30. United Airlines had a net margin of 4.94% and a return on equity of 30.72%. The firm had revenue of $14.70 billion during the quarter, compared to analyst estimates of $14.40 billion. During the same period in the previous year, the business posted $2.00 EPS. United Airlines’s revenue was up 7.8% on a year-over-year basis.

United Airlines announced that its board has approved a share repurchase program on Tuesday, October 15th that allows the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization allows the transportation company to purchase up to 7.1% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board of directors believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the stock. UBS Group lifted their target price on shares of United Airlines from $139.00 to $140.00 and gave the stock a “buy” rating in a research report on Tuesday, January 7th. Morgan Stanley boosted their target price on shares of United Airlines from $88.00 to $130.00 and gave the stock an “overweight” rating in a research report on Wednesday, December 11th. Melius Research upgraded shares of United Airlines to a “strong-buy” rating in a research note on Monday, December 2nd. Jefferies Financial Group upped their target price on shares of United Airlines from $75.00 to $95.00 and gave the company a “buy” rating in a research note on Monday, October 21st. Finally, Susquehanna upped their target price on shares of United Airlines from $85.00 to $120.00 and gave the company a “positive” rating in a research note on Tuesday, January 7th. One research analyst has rated the stock with a hold rating, sixteen have given a buy rating and two have issued a strong buy rating to the company. According to MarketBeat, United Airlines has an average rating of “Buy” and a consensus price target of $106.45.

Insiders Place Their Bets

In related news, EVP Kate Gebo sold 17,500 shares of the stock in a transaction that occurred on Friday, November 1st. The shares were sold at an average price of $80.44, for a total value of $1,407,700.00. Following the sale, the executive vice president now directly owns 40,012 shares in the company, valued at $3,218,565.28. This trade represents a 30.43 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Linda P. Jojo sold 60,000 shares of United Airlines stock in a transaction that occurred on Friday, November 22nd. The stock was sold at an average price of $95.12, for a total transaction of $5,707,200.00. Following the transaction, the executive vice president now directly owns 63,599 shares in the company, valued at $6,049,536.88. The trade was a 48.54 % decrease in their position. The disclosure for this sale can be found here. Insiders own 0.63% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the stock. Perigon Wealth Management LLC acquired a new position in United Airlines during the fourth quarter worth $1,158,000. Mount Yale Investment Advisors LLC bought a new stake in shares of United Airlines in the fourth quarter valued at about $1,081,000. Pacer Advisors Inc. lifted its position in United Airlines by 90.1% during the fourth quarter. Pacer Advisors Inc. now owns 46,592 shares of the transportation company’s stock worth $4,524,000 after purchasing an additional 22,080 shares during the period. KBC Group NV bought a new stake in United Airlines during the fourth quarter worth about $485,000. Finally, Blue Trust Inc. lifted its position in United Airlines by 25.0% during the fourth quarter. Blue Trust Inc. now owns 941 shares of the transportation company’s stock worth $91,000 after purchasing an additional 188 shares during the period. Institutional investors own 69.69% of the company’s stock.

United Airlines Price Performance

The business’s fifty day moving average price is $98.51 and its 200 day moving average price is $70.24. The company has a debt-to-equity ratio of 1.95, a current ratio of 0.79 and a quick ratio of 0.72. The stock has a market cap of $35.51 billion, a P/E ratio of 13.02, a PEG ratio of 0.78 and a beta of 1.44.

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.