Adversity is less terrifying than hope: JetBlue Airways Corporation (JBLU)

JetBlue Airways Corporation (NASDAQ: JBLU) stock fell -1.74% on Wednesday to $6.76 against a previous-day closing price of $6.88. With 11.46 million shares changed hands, the volume of the stock remained heavier than its average volume of 8.64 million shares. During the session, the Airlines company that operates in wider Industrials sector, reached to the highest price of $6.86 whereas the lowest price it dropped to was $6.68. The 52-week range on JBLU shows that it touched its highest point at $10.97 and its lowest point at $6.18 during that stretch. It currently has a 1-year price target of $8.31. Beta for the stock currently stands at 1.58.

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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 JBLU was down-trending over the past week, with a drop of -6.37%, but this was down by -0.29% over a month. Three-month performance dropped to -18.26% while six-month performance fell -12.66%. The stock lost -33.92% in the past year, while it has gained 4.32% so far this year. A look at the trailing 12-month EPS for JBLU yields -0.92 with Next year EPS estimates of 1.11. For the next quarter, that number is 0.39. This implies an EPS growth rate of -95.50% for this year and 63.81% for next year.

Float and Shares Shorts:

At present, 327.60 million JBLU shares are outstanding with a float of 322.03 million shares on hand for trading. On May 14, 2023, short shares totaled 18.74 million, which was 5.71% higher than short shares on Apr 13, 2023. In addition to Mr. Robin N. Hayes as the firm’s CEO & Director, Ms. Joanna L. Geraghty serves as its Pres & COO.

Institutional Ownership:

Through their ownership of 70.88% of JBLU’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 38.26% of JBLU, in contrast to 34.77% held by mutual funds. Shares owned by individuals account for 16.63%. As the largest shareholder in JBLU with 9.64% of the stake, The Vanguard Group, Inc. holds 31,561,495 shares worth 31,561,495. A second-largest stockholder of JBLU, BlackRock Fund Advisors, holds 26,459,851 shares, controlling over 8.09% of the firm’s shares. Dimensional Fund Advisors LP is the third largest shareholder in JBLU, holding 14,927,083 shares or 4.56% stake. With a 3.09% stake in JBLU, the iShares Core S&P Mid Cap ETF is the largest stakeholder. A total of 10,106,690 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 3.06% of JBLU stock, is the second-largest Mutual Fund holder. It holds 10,006,590 shares valued at 71.45 million. US Global Jets ETF holds 2.89% of the stake in JBLU, owning 9,462,344 shares worth 67.56 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, JBLU reported revenue of $2.44B and operating income of -$69.00M. The EBITDA in the recently reported quarter was -$62.00M and diluted EPS was -$0.58.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for JBLU since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With JBLU analysts setting a high price target of $11.00 and a low target of $6.00, the average target price over the next 12 months is $8.28. Based on these targets, JBLU could surge 62.72% to reach the target high and fall by -11.24% to reach the target low. Reaching the average price target will result in a growth of 22.49% 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.

Summary of Insider Activity:

Insiders traded JBLU stock several times over the past three months with 4 Buys and 0 Sells. In these transactions, 10,446 shares were bought while 0 shares were sold. The number of buy transactions has increased to 29 while that of sell transactions has risen to 17 over the past year. The total number of shares bought during that period was 229,823 while 83,610 shares were sold.

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