JetBlue Airways (JBLU) Rating Lowered to Hold at Zacks Investment Research

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Zacks Investment Research cut shares of JetBlue Airways (NASDAQ:JBLU) from a buy rating to a hold rating in a research report sent to investors on Wednesday morning.

According to Zacks, “JetBlue has been benefiting from strong passenger revenues, highlighting the strong demand for air travel. As a result of upbeat demand, passenger revenues increased 9.2% in 2018. Passenger revenue per available seat mile and operating revenue per available seat mile increased 2.1% to 12.33 cents and 12.79 cents respectively. We are also impressed by the carrier's initiatives to reward shareholders through buybacks. The company's efforts to modernize its fleet are also encouraging. However, high labor costs might affect JetBlue's bottom line growth. Additionally, capacity overexpansion is another cause for cocern. In February, load factor declined 110 bps to 81.5% as traffic growth was outpaced by capacity expansion. The company's RASM guidance for the first quarter is also concerning. The metric is anticipated to decline 1.5-3.5% in the quarter.”

JBLU has been the topic of several other reports. Credit Suisse Group reissued a hold rating and set a $17.00 price objective on shares of JetBlue Airways in a report on Thursday, February 7th. Imperial Capital reissued an outperform rating and set a $23.00 price objective (down from $25.00) on shares of JetBlue Airways in a report on Friday, March 8th. JPMorgan Chase & Co. lowered shares of JetBlue Airways from an overweight rating to a neutral rating and set a $18.00 price objective on the stock. in a report on Thursday, January 10th. BidaskClub lowered shares of JetBlue Airways from a hold rating to a sell rating in a report on Friday, February 22nd. Finally, ValuEngine lowered shares of JetBlue Airways from a hold rating to a sell rating in a report on Friday, February 15th. Four equities research analysts have rated the stock with a sell rating, eleven have given a hold rating and three have assigned a buy rating to the stock. The company has an average rating of Hold and a consensus target price of $19.68.

Shares of JBLU stock opened at $16.74 on Wednesday. The company has a market cap of $5.13 billion, a P/E ratio of 10.80, a price-to-earnings-growth ratio of 0.46 and a beta of 0.90. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.58 and a current ratio of 0.61. JetBlue Airways has a 52-week low of $15.19 and a 52-week high of $22.80.

JetBlue Airways (NASDAQ:JBLU) last issued its quarterly earnings data on Thursday, January 24th. The transportation company reported $0.50 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.43 by $0.07. The company had revenue of $1.97 billion for the quarter, compared to analyst estimates of $1.95 billion. JetBlue Airways had a net margin of 2.44% and a return on equity of 10.92%. JetBlue Airways’s revenue was up 11.9% compared to the same quarter last year. During the same period last year, the company posted $2.08 earnings per share. Sell-side analysts anticipate that JetBlue Airways will post 1.96 earnings per share for the current fiscal year.

In other JetBlue Airways news, CEO Robin Hayes sold 2,500 shares of the firm’s stock in a transaction that occurred on Thursday, January 10th. The shares were sold at an average price of $16.16, for a total value of $40,400.00. Following the completion of the sale, the chief executive officer now directly owns 431,656 shares in the company, valued at $6,975,560.96. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Over the last 90 days, insiders sold 7,500 shares of company stock valued at $125,650. 0.63% of the stock is owned by insiders.

A number of institutional investors and hedge funds have recently made changes to their positions in JBLU. Private Advisor Group LLC acquired a new stake in JetBlue Airways in the third quarter valued at approximately $255,000. WINTON GROUP Ltd acquired a new stake in shares of JetBlue Airways during the third quarter worth $1,343,000. Stone Ridge Asset Management LLC lifted its stake in shares of JetBlue Airways by 12.4% during the third quarter. Stone Ridge Asset Management LLC now owns 85,647 shares of the transportation company’s stock worth $1,658,000 after buying an additional 9,467 shares during the period. JPMorgan Chase & Co. lifted its stake in shares of JetBlue Airways by 30.6% during the third quarter. JPMorgan Chase & Co. now owns 639,349 shares of the transportation company’s stock worth $12,377,000 after buying an additional 149,968 shares during the period. Finally, Prudential Financial Inc. lifted its stake in shares of JetBlue Airways by 7.2% during the third quarter. Prudential Financial Inc. now owns 1,741,929 shares of the transportation company’s stock worth $33,724,000 after buying an additional 117,089 shares during the period. Institutional investors own 89.71% of the company’s stock.

About JetBlue Airways

JetBlue Airways Corporation, a passenger carrier company, provides air transportation services. As of December 31, 2018, the company operated a fleet of 63 Airbus A321 aircraft, 130 Airbus A320 aircraft, and 60 Embraer E190 aircraft. It also served 105 destinations in the 31 states in the United States, the District of Columbia, the Commonwealth of Puerto Rico, the U.S.

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