Copa (CPA) Downgraded to “Sell” at Zacks Investment Research
Zacks Investment Research lowered shares of Copa (NYSE:CPA) from a hold rating to a sell rating in a research report sent to investors on Monday morning.
According to Zacks, “Shares of Copa Holdings have shed more than 40% of their value so far this year due to multiple headwinds. High fuel costs are limiting bottom-line growth and are expected to do so in the coming days as well. Copa Holdings expects effective fuel price per gallon to be approximately $2.30 in the current year, much higher than the $1.87 recorded in 2017. Fuel costs apart, expenses on the labor front are also hurting the bottom line. Currecy devaluation in certain Latin American economies represent an added challenge for Copa Holdings. The Zacks Consensus Estimate for third-quarter and full-year earnings moved south 25.3% and 12.5%, respectively, in the last 60 days. The unfavorable readings are reflective of the pessimism surrounding the stock. We are, however, impressed with the company’s efforts to reward shareholders.”
Several other research firms also recently issued reports on CPA. UBS Group raised Copa from a sell rating to a buy rating and set a $68.00 price objective for the company in a research note on Thursday, May 24th. ValuEngine downgraded Copa from a hold rating to a sell rating in a research note on Friday, June 1st. Raymond James raised Copa from an outperform rating to a strong-buy rating in a research note on Wednesday, June 20th. HSBC raised Copa from a hold rating to a buy rating in a research note on Friday, June 22nd. Finally, Buckingham Research downgraded Copa from a buy rating to a neutral rating and lowered their price objective for the company from $165.00 to $103.00 in a research note on Wednesday, July 11th. Three equities research analysts have rated the stock with a sell rating, two have assigned a hold rating, seven have issued a buy rating and one has issued a strong buy rating to the company’s stock. Copa currently has a consensus rating of Hold and an average price target of $116.33.
Copa (NYSE:CPA) last posted its earnings results on Wednesday, August 8th. The transportation company reported $1.18 EPS for the quarter, missing analysts’ consensus estimates of $1.28 by ($0.10). Copa had a return on equity of 18.08% and a net margin of 14.58%. The company had revenue of $634.10 million during the quarter, compared to the consensus estimate of $659.06 million. During the same period last year, the company posted $1.48 EPS. The firm’s revenue was up 10.5% compared to the same quarter last year. analysts anticipate that Copa will post 8.37 EPS for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Friday, September 14th. Stockholders of record on Friday, August 31st were paid a $0.87 dividend. This represents a $3.48 annualized dividend and a dividend yield of 4.35%. The ex-dividend date of this dividend was Thursday, August 30th. Copa’s dividend payout ratio is currently 40.18%.
A number of large investors have recently added to or reduced their stakes in the business. Schroder Investment Management Group acquired a new stake in Copa during the 2nd quarter valued at approximately $1,188,000. Advisors Asset Management Inc. increased its position in Copa by 23.1% during the 2nd quarter. Advisors Asset Management Inc. now owns 14,502 shares of the transportation company’s stock valued at $1,372,000 after purchasing an additional 2,725 shares during the period. Verition Fund Management LLC increased its position in Copa by 17.0% during the 2nd quarter. Verition Fund Management LLC now owns 8,247 shares of the transportation company’s stock valued at $780,000 after purchasing an additional 1,199 shares during the period. NorthCoast Asset Management LLC acquired a new stake in Copa during the 2nd quarter valued at approximately $1,958,000. Finally, Putnam Investments LLC acquired a new stake in Copa during the 2nd quarter valued at approximately $3,687,000. 64.39% of the stock is owned by institutional investors and hedge funds.
Copa Holdings, SA, through its subsidiaries, provides airline passenger and cargo services. The company offers flights to 75 destinations in 31 countries in North, Central, and South America, as well as the Caribbean. As of April 12, 2018, it operated a fleet of 101 aircraft comprising 81 Boeing 737NG aircraft and 20 EMBRAER-190s aircraft.
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