Controladora Vuela Compania de Aviacion S.A.B. de C.V. (NYSE: VLRS) stock fell -4.57% on Friday to $8.98 against a previous-day closing price of $9.41. With 1.58 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.4 million shares. During the session, the Airlines company that operates in wider Industrials sector, reached to the highest price of $9.74 whereas the lowest price it dropped to was $8.94. The 52-week range on VLRS shows that it touched its highest point at $15.05 and its lowest point at $6.86 during that stretch. It currently has a 1-year price target of $19.32. Beta for the stock currently stands at 2.48.
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 VLRS was down-trending over the past week, with a drop of -11.87%, but this was down by -11.09% over a month. Three-month performance dropped to -38.99% while six-month performance fell -16.39%. The stock lost -0.33% in the past year, while it has gained 7.42% so far this year. A look at the trailing 12-month EPS for VLRS yields -0.46 with Next year EPS estimates of 1.28. For the next quarter, that number is 0.07. This implies an EPS growth rate of 102.20% for this year and 70.70% for next year. EPS is expected to grow by 9.70% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -51.60%.
Float and Shares Shorts:
At present, 110.85 million VLRS shares are outstanding with a float of 109.69 million shares on hand for trading. On Aug 30, 2023, short shares totaled 0.54 million, which was 0.47% higher than short shares on Jul 30, 2023. In addition to Mr. Enrique Javier Beltranena Mejicano as the firm’s Pres, CEO & Director, Mr. Jaime Esteban Pous Fernandez serves as its Sr. VP & CFO.
Through their ownership of 44.04% of VLRS’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 4.86% of VLRS, in contrast to 21.10% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in VLRS with 5.33% of the stake, Teewinot Capital Advisers LLC holds 5,903,582 shares worth 5,903,582. A second-largest stockholder of VLRS, Permian Investment Partners LP, holds 3,643,962 shares, controlling over 3.29% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in VLRS, holding 3,018,000 shares or 2.72% stake. With a 2.31% stake in VLRS, the American Funds Small Cap World Fu is the largest stakeholder. A total of 2,557,800 shares are owned by the mutual fund manager. The American Funds Insurance Series -, which owns about 0.42% of VLRS stock, is the second-largest Mutual Fund holder. It holds 460,200 shares valued at 4.6 million. TT International Funds Plc – Emer holds 0.41% of the stake in VLRS, owning 454,460 shares worth 4.54 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 Jun 29, 2023, VLRS reported revenue of $691.00M and operating income of -$20.00M. The EBITDA in the recently reported quarter was -$19.00M and diluted EPS was -$0.42.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for VLRS 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 VLRS analysts setting a high price target of $27.00 and a low target of $14.98, the average target price over the next 12 months is $20.23. Based on these targets, VLRS could surge 200.67% to reach the target high and rise by 66.82% to reach the target low. Reaching the average price target will result in a growth of 125.28% 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.