JetBlue Airways Corporation (NASDAQ: JBLU) Is Getting Increasingly Hard To Ignore


    Donald Smith & Co., Inc. recently announced the acquisition of new stake in JetBlue Airways Corporation (NASDAQ:JBLU). The institutional investor has increased its shareholding in the Industrials company by 3.77% to 10.11 million shares with purchase of 0.37 million shares. This fresh investment now brings its stake to 3.75% valued currently at $104.58 million. In addition, Wellington Management Co. LLP raised its holdings by 3.45 million to 5.16 million shares.

    With over 7.53 million JetBlue Airways Corporation (JBLU) shares trading Monday and a closing price of $11.52 on the day, the dollar volume was approximately $86.79 million. The shares have shown a positive weekly performance of 0.79% and its price on 08/31/20 lost nearly -3.76%. Currently, there are 271.70M common shares owned by the public and among those 270.11M 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: 16 analysts who have offered their price forecasts for JBLU have a consensus price objective of $12.07. The analysts have set the share’s price value over the next 12 months at a high of $18.00 and a low of $8.00 should the stock experience a downside. Incidentally, analysts’ outlook for the JetBlue Airways Corporation stock is 2.90 for the next 12 months. The average price target is 4.64% above its last price level and an upside to the estimated low will see the stock lose -44.0% over that period. But an upside of 36.0% will see the stock hit the forecast high price target while mean target price for the stock is $12.00.

    Insiders at the company have transacted a total of 100 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 38 of these insider trades were purchases, accounting for 268,187 shares. Insider sales of the common stock occurred on 62 occasions, with total insider shares sold totaling 188,566 shares.

    The top 3 mutual fund holders in JetBlue Airways Corporation are Vanguard Selected Value Fund, Vanguard Total Stock Market Index, and PRIMECAP Odyssey Aggressive Growt. Vanguard Selected Value Fund owns 7.84 million shares of the company’s stock, all valued at over $81.07 million. Vanguard Total Stock Market Index sold 76374.0 shares to see its total holdings shrink to 7.64 million shares valued at over $79.01 million and representing 2.83% of the shares outstanding. PRIMECAP Odyssey Aggressive Growt sold -0.32 million shares to bring its total holdings to over 7.32 million shares at a value of $75.68 million. PRIMECAP Odyssey Aggressive Growt now owns shares totaling to 2.71% of the shares outstanding.

    Shares of JetBlue Airways Corporation (NASDAQ: JBLU) opened at $11.85, down -$0.12 from a prior closing price of $11.97. However, the script later closed the day at $11.52, down -3.76%. The company’s stock has a 5-day price change of 0.79% and 11.74% over the past three months. JBLU shares are trading -38.46% year to date (YTD), with the 12-month market performance down to -33.49% lower. It has a 12-month low price of $6.61 and touched a high of $21.65 over the same period. Currently, 7.53 million shares have been traded, compared to an average intraday trading volume of 14.71 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 3.50%, 6.38%, and -15.66% respectively.

    Institutional ownership of JetBlue Airways Corporation (NASDAQ: JBLU) shares accounts for 81.10% of the company’s 271.70M shares outstanding. Mutual fund holders own 31.56%, while other institutional holders and individual stakeholders account for 47.17% and 19.84% respectively.

    It has a market capitalization of $3.04B and a beta (3y monthly) value of 1.40. The earnings-per-share (ttm) stands at -$0.95. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.40% over the week and 4.70% over the month.

    Analysts forecast that JetBlue Airways Corporation (JBLU) will achieve an EPS of -$2.09 for the current quarter, -$1.43 for the next quarter and $0.12 for 2021. The lowest estimate earnings-per-share for the quarter is -$2.95 while analysts give the company a high EPS estimate of -$1.68. Comparatively, EPS for the current quarter was $0.59 a year ago. Earnings per share for the fiscal year are expected to increase by 272.50%, and 102.00% over the next financial year. EPS should shrink at an annualized rate of -13.41% over the next five years, compared to 9.90% over the past 5-year period.

    Looking at the support for the JBLU, 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 $18. JP Morgan coverage for the JetBlue Airways Corporation (JBLU) stock in a research note released on June 10, 2020 offered a Underweight rating with a price target of $11. BofA/Merrill was of a view on June 08, 2020 that the stock is Neutral, while Cowen gave the stock Market Perform rating on April 28, 2020, issuing a price target of $10- $9. Susquehanna on their part issued Neutral rating on April 21, 2020.


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