United Airlines Holdings Inc. (NASDAQ: UAL): Stock That Needs Special Handling


The Vanguard Group, Inc. recently announced the acquisition of new stake in United Airlines Holdings Inc. (NASDAQ:UAL). The institutional investor has increased its shareholding in the Industrials company by 44.81% to 28.21 million shares with purchase of 8.73 million shares. This fresh investment now brings its stake to 9.70% valued currently at $885.28 million. In addition, BlackRock Fund Advisors raised its holdings by 0.74 million to 11.89 million shares. And D. E. Shaw & Co. LP has lifted its position by 2,413.58% or 4.57 million shares – to 4.76 million shares.

With over 35.08 million United Airlines Holdings Inc. (UAL) shares trading Friday and a closing price of $37.34 on the day, the dollar volume was approximately $1.31 billion. The shares have shown a positive weekly performance of 13.01% and its price on 08/28/20 gained nearly 3.09%. Currently, there are 290.98M common shares owned by the public and among those 289.96M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 20 analysts who have offered their price forecasts for UAL have a consensus price objective of $41.69. The analysts have set the share’s price value over the next 12 months at a high of $60.00 and a low of $25.00 should the stock experience a downside. Incidentally, analysts’ outlook for the United Airlines Holdings Inc. stock is 2.50 for the next 12 months. The average price target is 10.09% above its last price level and an upside to the estimated low will see the stock lose -49.36% over that period. But an upside of 37.77% will see the stock hit the forecast high price target while mean target price for the stock is $40.00.

Insiders at the company have transacted a total of 65 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 46 of these insider trades were purchases, accounting for 222,215 shares. Insider sales of the common stock occurred on 19 occasions, with total insider shares sold totaling 121,352 shares.

The top 3 mutual fund holders in United Airlines Holdings Inc. are Vanguard PRIMECAP Fund, Vanguard Total Stock Market Index, and Vanguard Mid Cap Index Fund. Vanguard PRIMECAP Fund owns 14.46 million shares of the company’s stock, all valued at over $453.72 million. The company sold -1.27 million shares recently to bring their total holdings to about 4.97% of the shares outstanding. Vanguard Total Stock Market Index sold 3054.0 shares to see its total holdings shrink to 7.85 million shares valued at over $246.43 million and representing 2.70% of the shares outstanding. Vanguard Mid Cap Index Fund sold 44944.0 shares to bring its total holdings to over 6.78 million shares at a value of $212.69 million. Vanguard Mid Cap Index Fund now owns shares totaling to 2.33% of the shares outstanding.

Shares of United Airlines Holdings Inc. (NASDAQ: UAL) opened at $37.14, up $0.92 from a prior closing price of $36.22. However, the script later closed the day at $37.34, up 3.09%. The company’s stock has a 5-day price change of 13.01% and 26.75% over the past three months. UAL shares are trading -57.61% year to date (YTD), with the 12-month market performance down to -55.91% lower. It has a 12-month low price of $17.80 and touched a high of $95.16 over the same period. Currently, 35.08 million shares have been traded, compared to an average intraday trading volume of 57.41 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 7.81%, 9.48%, and -28.44% respectively.

Institutional ownership of United Airlines Holdings Inc. (NASDAQ: UAL) shares accounts for 62.50% of the company’s 290.98M shares outstanding. Mutual fund holders own 37.28%, while other institutional holders and individual stakeholders account for 6.37% and 24.52% respectively.

It has a market capitalization of $10.54B and a beta (3y monthly) value of 1.53. The earnings-per-share (ttm) stands at -$6.13. Price movements for the stock have been influenced by the stock’s volatility, which stands at 6.63% over the week and 5.80% over the month.

Analysts forecast that United Airlines Holdings Inc. (UAL) will achieve an EPS of -$7.36 for the current quarter, -$4.3 for the next quarter and -$0.1 for 2021. The lowest estimate earnings-per-share for the quarter is -$9.15 while analysts give the company a high EPS estimate of -$3.42. Comparatively, EPS for the current quarter was $4.07 a year ago. Earnings per share for the fiscal year are expected to increase by 51.30%, and 99.60% over the next financial year.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 20 brokerage firm advisors rate United Airlines Holdings Inc. (UAL) as a “Moderate Buy” at a consensus score of 2.50. Specifically, 7 Wall Street analysts polled rate the stock as a buy, while 12 of the 20 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the UAL, a number of firms have released research notes about the stock. Seaport Global Securities stated their Buy rating for the stock in a research note on June 17, 2020, with the firm’s price target at $56. Credit Suisse coverage for the United Airlines Holdings Inc. (UAL) stock in a research note released on June 12, 2020 offered a Neutral rating with a price target of. JP Morgan was of a view on June 10, 2020 that the stock is Neutral, while Cowen gave the stock Market Perform rating on April 22, 2020, issuing a price target of $37- $30. Deutsche Bank on their part issued Buy rating on March 25, 2020.


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