United Airlines (NASDAQ:UAL) Sees Large Volume Increase After Better-Than-Expected Earnings

Shares of United Airlines Holdings, Inc. (NASDAQ:UAL) saw unusually-high trading volume on Wednesday after the company announced better than expected quarterly earnings. Approximately 5,782,033 shares traded hands during mid-day trading, a decline of 32% from the previous session’s volume of 8,485,155 shares.The stock last traded at $69.12 and had previously closed at $64.05.

The transportation company reported $3.33 earnings per share for the quarter, topping 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 during the quarter, compared to the consensus estimate of $14.76 billion. During the same quarter last year, the firm earned $3.65 earnings per share.

United Airlines declared that its Board of Directors has approved a share buyback program on Tuesday, October 15th that authorizes the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization authorizes the transportation company to buy up to 7.1% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s board believes its shares are undervalued.

Analyst Ratings Changes

A number of brokerages have recently commented on UAL. Sanford C. Bernstein upped their price target on United Airlines from $68.00 to $85.00 and gave the company an “outperform” rating in a research report on Thursday. TD Cowen upped their price target on United Airlines from $80.00 to $100.00 and gave the company a “buy” rating in a research report on Thursday. Barclays upped their price target on United Airlines from $66.00 to $75.00 and gave the company an “overweight” rating in a research report on Wednesday. Bank of America increased their price objective on United Airlines from $70.00 to $84.00 and gave the stock a “buy” rating in a report on Thursday. Finally, Susquehanna increased their price objective on United Airlines from $70.00 to $85.00 and gave the stock a “positive” rating in a report on Thursday. Two research analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $78.88.

Hedge Funds Weigh In On United Airlines

Institutional investors and hedge funds have recently bought and sold shares of the stock. BNP Paribas bought a new position in United Airlines during the 1st quarter worth approximately $25,000. Fidelis Capital Partners LLC purchased a new stake in United Airlines in the 1st quarter worth approximately $27,000. Strategic Investment Solutions Inc. IL purchased a new stake in United Airlines in the 2nd quarter worth approximately $30,000. Crewe Advisors LLC purchased a new stake in United Airlines in the 1st quarter worth approximately $32,000. Finally, GoalVest Advisory LLC purchased a new stake in United Airlines in the 1st quarter worth approximately $33,000. 69.69% of the stock is currently owned by institutional investors.

United Airlines Trading Up 1.8 %

The company has a current ratio of 0.77, a quick ratio of 0.71 and a debt-to-equity ratio of 2.07. The firm has a fifty day simple moving average of $50.73 and a two-hundred day simple moving average of $49.50. The firm has a market cap of $24.11 billion, a PE ratio of 8.32, a PEG ratio of 0.94 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.