Taking the lead: Wheels Up Experience Inc. (UP)

Wheels Up Experience Inc. (NYSE: UP) stock jumped 4.72% on Friday to $1.33 against a previous-day closing price of $1.27. With 1.51 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.6 million shares. During the session, the Airports & Air Services company that operates in wider Industrials sector, reached to the highest price of $1.3300 whereas the lowest price it dropped to was $1.2400. The 52-week range on UP shows that it touched its highest point at $4.10 and its lowest point at $0.98 during that stretch. It currently has a 1-year price target of $3.54.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of UP was down-trending over the past week, with a drop of -10.14%, but this was up by 27.88% over a month. Three-month performance surged to 6.40% while six-month performance fell -41.41%. The stock lost -65.54% in the past year, while it has gained 29.13% so far this year. A look at the trailing 12-month EPS for UP yields -1.41 with Next year EPS estimates of -0.98. For the next quarter, that number is -0.32. This implies an EPS growth rate of -53.00% for this year and 3.00% for next year.

Float and Shares Shorts:

At present, 244.35 million UP shares are outstanding with a float of 223.52 million shares on hand for trading. On Oct 13, 2022, short shares totaled 5.27 million, which was 2.16% higher than short shares on Sep 14, 2022. In addition to Mr. Kenneth H. Dichter as the firm’s Founder, CEO & Chairman, Mr. Vinayak R. Hegde serves as its Pres.

Institutional Ownership:

Through their ownership of 57.33% of UP’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 17.94% of UP, in contrast to 12.23% held by mutual funds. Shares owned by individuals account for 11.31%. As the largest shareholder in UP with 5.25% of the stake, Fidelity Management & Research Co holds 13,002,963 shares worth 13,002,963. A second-largest stockholder of UP, BlackRock Fund Advisors, holds 10,812,309 shares, controlling over 4.37% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in UP, holding 8,714,413 shares or 3.52% stake. With a 2.11% stake in UP, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 5,232,722 shares are owned by the mutual fund manager. The Fidelity Growth Company Fund, which owns about 1.87% of UP stock, is the second-largest Mutual Fund holder. It holds 4,623,545 shares valued at 4.76 million. iShares Russell 2000 ETF holds 1.41% of the stake in UP, owning 3,482,076 shares worth 3.59 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for UP since 8 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With UP analysts setting a high price target of $5.00 and a low target of $1.30, the average target price over the next 12 months is $3.54. Based on these targets, UP could surge 275.94% to reach the target high and fall by -2.26% to reach the target low. Reaching the average price target will result in a growth of 166.17% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. UP will report FY 2022 earnings on 03/07/2024. Analysts have provided yearly estimates in a range of -$0.99 being high and -$1.26 being low. For UP, this leads to a yearly average estimate of -$1.07. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Wheels Up Experience Inc. surprised analysts by $0.06 when it reported -$0.24 EPS against a consensus estimate of -$0.30. The surprise factor in the prior quarter was $0.03. Based on analyst estimates, the high estimate for the next quarter is -$0.26 and the low estimate is -$0.31. The average estimate for the next quarter is thus -$0.28.

Summary of Insider Activity:

Insiders traded UP stock several times over the past three months with 2 Buys and 1 Sells. In these transactions, 400,000 shares were bought while 9,592 shares were sold. The number of buy transactions has increased to 21 while that of sell transactions has risen to 9 over the past year. The total number of shares bought during that period was 7,483,258 while 2,303,136 shares were sold.

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