How does Copa Holdings S.A. (CPA) change from a tortoise to a hare?

Copa Holdings S.A. (NYSE: CPA) stock fell -3.76% on Tuesday to $89.02 against a previous-day closing price of $92.50. With 0.53 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.34 million shares. During the session, the Airlines company that operates in wider Industrials sector, reached to the highest price of $92.50 whereas the lowest price it dropped to was $88.84. The 52-week range on CPA shows that it touched its highest point at $97.63 and its lowest point at $55.25 during that stretch. It currently has a 1-year price target of $112.67. Beta for the stock currently stands at 1.32.

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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 CPA was down-trending over the past week, with a drop of -2.96%, but this was up by 6.01% over a month. Three-month performance surged to 18.44% while six-month performance rose 36.58%. The stock gained 10.94% in the past year, while it has gained 7.03% so far this year. A look at the trailing 12-month EPS for CPA yields 9.23 with Next year EPS estimates of 11.13. For the next quarter, that number is 4.02. This implies an EPS growth rate of 107.20% for this year and 40.86% for next year.

Float and Shares Shorts:

At present, 39.59 million CPA shares are outstanding with a float of 33.75 million shares on hand for trading. On Oct 13, 2022, short shares totaled 2.58 million, which was 6.49% higher than short shares on Sep 14, 2022. In addition to Mr. Pedro Heilbron as the firm’s CEO & Director, Mr. Jose Montero serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 103.38% of CPA’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 60.92% of CPA, in contrast to 49.70% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in CPA with 16.24% of the stake, Baillie Gifford & Co. holds 4,623,324 shares worth 4,623,324. A second-largest stockholder of CPA, Capital Research & Management Co, holds 3,597,246 shares, controlling over 12.63% of the firm’s shares. Sprucegrove Investment Management is the third largest shareholder in CPA, holding 3,390,335 shares or 11.91% stake. With a 8.39% stake in CPA, the American Funds New World Fund is the largest stakeholder. A total of 2,569,500 shares are owned by the mutual fund manager. The Vanguard International Value Fund, which owns about 3.91% of CPA stock, is the second-largest Mutual Fund holder. It holds 1,114,653 shares valued at 92.71 million. JPMorgan Emerging Markets Equity holds 2.82% of the stake in CPA, owning 863,896 shares worth 71.85 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CPA since 14 analysts follow the stock currently. There are 11 analysts who recommend BUY ratings, while 0 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 CPA analysts setting a high price target of $150.00 and a low target of $90.00, the average target price over the next 12 months is $116.64. Based on these targets, CPA could surge 68.5% to reach the target high and rise by 1.1% to reach the target low. Reaching the average price target will result in a growth of 31.03% 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. CPA will report FY 2022 earnings on 02/14/2024. Analysts have provided yearly estimates in a range of $10.56 being high and $7.70 being low. For CPA, this leads to a yearly average estimate of $8.52. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Copa Holdings S.A. surprised analysts by $0.18 when it reported $2.91 EPS against a consensus estimate of $2.73. The surprise factor in the prior quarter was $0.03. Based on analyst estimates, the high estimate for the next quarter is $4.12 and the low estimate is $2.46. The average estimate for the next quarter is thus $3.83.

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