United Airlines (NASDAQ:UAL) Sets New 12-Month High – Time to Buy?

United Airlines Holdings, Inc. (NASDAQ:UAL)’s stock price reached a new 52-week high on Monday . The stock traded as high as $96.10 and last traded at $96.10, with a volume of 42588 shares changing hands. The stock had previously closed at $95.24.

Wall Street Analyst Weigh In

Several analysts have issued reports on the stock. Sanford C. Bernstein upped their price target on shares of United Airlines from $68.00 to $85.00 and gave the stock an “outperform” rating in a research report on Thursday, October 17th. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $119.00 target price on shares of United Airlines in a report on Friday, November 15th. Jefferies Financial Group lifted their price target on United Airlines from $75.00 to $95.00 and gave the stock a “buy” rating in a report on Monday, October 21st. Bank of America upped their price objective on United Airlines from $70.00 to $84.00 and gave the company a “buy” rating in a research note on Thursday, October 17th. Finally, Barclays lifted their target price on United Airlines from $75.00 to $150.00 and gave the stock an “overweight” rating in a research note on Thursday, November 14th. Two equities research analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $88.28.

United Airlines Stock Performance

The stock’s 50-day simple moving average is $71.42 and its 200-day simple moving average is $55.95. The stock has a market cap of $31.96 billion, a price-to-earnings ratio of 11.49, a price-to-earnings-growth ratio of 1.13 and a beta of 1.39. The company has a current ratio of 0.79, a quick ratio of 0.72 and a debt-to-equity ratio of 1.95.

United Airlines (NASDAQ:UAL) last posted its quarterly earnings data on Tuesday, October 15th. The transportation company reported $3.33 EPS for the quarter, topping analysts’ consensus estimates of $3.10 by $0.23. The firm had revenue of $14.84 billion for the quarter, compared to analyst estimates of $14.76 billion. United Airlines had a return on equity of 30.72% and a net margin of 4.94%. During the same quarter last year, the company earned $3.65 EPS. Analysts forecast that United Airlines Holdings, Inc. will post 10.23 earnings per share for the current fiscal year.

United Airlines announced that its board has authorized a stock buyback program on Tuesday, October 15th that permits the company to buyback $1.50 billion in shares. This buyback authorization permits the transportation company to buy up to 7.1% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s leadership believes its stock is undervalued.

Insiders Place Their Bets

In other news, EVP Kate Gebo sold 17,500 shares of the stock in a transaction dated 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 completion of the transaction, the executive vice president now owns 40,012 shares of the company’s stock, valued at approximately $3,218,565.28. This represents a 30.43 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Torbjorn J. Enqvist sold 14,500 shares of United Airlines stock in a transaction that occurred on Thursday, October 17th. The shares were sold at an average price of $72.00, for a total transaction of $1,044,000.00. Following the sale, the executive vice president now directly owns 30,427 shares in the company, valued at $2,190,744. This trade represents a 32.27 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 0.63% of the company’s stock.

Institutional Trading of United Airlines

Hedge funds have recently added to or reduced their stakes in the stock. Castle Hook Partners LP boosted its stake in shares of United Airlines by 176.1% during the third quarter. Castle Hook Partners LP now owns 4,245,120 shares of the transportation company’s stock valued at $242,227,000 after purchasing an additional 2,707,442 shares in the last quarter. Interval Partners LP acquired a new stake in United Airlines during the 1st quarter worth approximately $103,354,000. Point72 Asset Management L.P. grew its holdings in United Airlines by 489.2% during the 2nd quarter. Point72 Asset Management L.P. now owns 2,295,246 shares of the transportation company’s stock worth $111,687,000 after acquiring an additional 1,905,664 shares during the last quarter. Dimensional Fund Advisors LP increased its position in United Airlines by 29.1% in the 2nd quarter. Dimensional Fund Advisors LP now owns 5,601,425 shares of the transportation company’s stock valued at $272,559,000 after acquiring an additional 1,263,604 shares during the period. Finally, Rubric Capital Management LP bought a new position in shares of United Airlines during the third quarter valued at $63,486,000. Institutional investors and hedge funds own 69.69% of the company’s stock.

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.