Share Buyback Program Declared by United Airlines (NASDAQ:UAL) Board of Directors

United Airlines (NASDAQ:UAL) announced that its board has initiated a stock repurchase plan on Tuesday, October 15th, RTT News reports. The company plans to repurchase $1.50 billion in shares. This repurchase authorization allows the transportation company to reacquire up to 7.1% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s management believes its stock is undervalued.

United Airlines Price Performance

NASDAQ:UAL opened at $72.02 on Thursday. United Airlines has a 52 week low of $33.68 and a 52 week high of $73.65. The company has a quick ratio of 0.71, a current ratio of 0.77 and a debt-to-equity ratio of 2.07. The company has a market capitalization of $23.68 billion, a P/E ratio of 8.17, a P/E/G ratio of 0.94 and a beta of 1.44. The stock’s fifty day moving average is $50.08 and its two-hundred day moving average is $49.33.

United Airlines (NASDAQ:UAL) last posted its earnings results on Tuesday, October 15th. The transportation company reported $3.33 EPS for the quarter, beating analysts’ consensus estimates of $3.10 by $0.23. United Airlines had a return on equity of 33.90% and a net margin of 5.28%. The company had revenue of $14.84 billion for the quarter, compared to the consensus estimate of $14.76 billion. During the same quarter in the previous year, the business earned $3.65 earnings per share. Equities analysts expect that United Airlines will post 9.88 EPS for the current year.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on UAL shares. Susquehanna boosted their target price on United Airlines from $60.00 to $70.00 and gave the stock a “positive” rating in a research note on Wednesday, October 9th. Jefferies Financial Group boosted their price objective on shares of United Airlines from $69.00 to $75.00 and gave the company a “buy” rating in a research note on Wednesday, October 2nd. TD Cowen boosted their price objective on shares of United Airlines from $65.00 to $80.00 and gave the company a “buy” rating in a research note on Wednesday, July 17th. Finally, Barclays lifted their price objective on United Airlines from $66.00 to $75.00 and gave the company an “overweight” rating in a research note on Wednesday. Two research analysts have rated the stock with a hold rating and thirteen have given a buy rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $74.37.

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.