Zacks Investment Research Lowers Spirit Airlines (SAVE) to Hold
Zacks Investment Research lowered shares of Spirit Airlines (NASDAQ:SAVE) from a strong-buy rating to a hold rating in a research note issued to investors on Wednesday.
According to Zacks, “Shares of Spirit Airlines have outperformed the industry in a year. The company has been benefitting from impressive cost performance driven by operational effciiency. Robust passenger revenues due to the strong demand for air travel is also encouraging. Impressive passnger revenues are expected to boost the top line going forward. The company's total unit revenue view for the third quarter is also encouraging. Total revenue per available seat mile (TRASM) is expected to increase in the range of 2-3% despite adversities. However, high fuel costs are limiting bottom line growth. For the third quarter of 2018, results of which will be out on Oct 25, fuel costs are anticipated to be $2.33 per gallon, compared with $1.75 in the year-ago quarter.”
SAVE has been the topic of several other reports. BidaskClub downgraded shares of Spirit Airlines from a strong-buy rating to a buy rating in a research note on Tuesday, September 25th. Buckingham Research set a $61.00 target price on shares of Spirit Airlines and gave the stock a buy rating in a research note on Thursday, August 30th. Cowen lifted their target price on shares of Spirit Airlines from $39.00 to $46.00 and gave the stock a market perform rating in a research note on Friday, July 27th. Barclays decreased their target price on shares of Spirit Airlines from $49.00 to $42.00 and set an equal weight rating on the stock in a research note on Monday, July 16th. Finally, Imperial Capital reaffirmed an outperform rating and issued a $53.00 target price (up from $48.00) on shares of Spirit Airlines in a research note on Saturday, July 14th. Seven analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company. The company currently has an average rating of Buy and a consensus target price of $52.62.
Spirit Airlines (NASDAQ:SAVE) last issued its earnings results on Wednesday, July 25th. The transportation company reported $1.11 EPS for the quarter, topping the consensus estimate of $1.09 by $0.02. Spirit Airlines had a net margin of 8.55% and a return on equity of 15.86%. The company had revenue of $851.80 million for the quarter, compared to the consensus estimate of $851.83 million. During the same period in the previous year, the firm earned $1.14 earnings per share. The firm’s revenue for the quarter was up 21.4% on a year-over-year basis. Equities research analysts expect that Spirit Airlines will post 3.08 EPS for the current fiscal year.
In related news, SVP Rocky Wiggins sold 566 shares of Spirit Airlines stock in a transaction on Tuesday, September 11th. The shares were sold at an average price of $47.89, for a total value of $27,105.74. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Robert D. Johnson sold 750 shares of Spirit Airlines stock in a transaction on Tuesday, September 4th. The shares were sold at an average price of $47.53, for a total transaction of $35,647.50. The disclosure for this sale can be found here. Insiders own 0.33% of the company’s stock.
Hedge funds have recently made changes to their positions in the company. Strs Ohio bought a new stake in shares of Spirit Airlines during the 2nd quarter valued at $105,000. Point72 Hong Kong Ltd boosted its holdings in shares of Spirit Airlines by 147.4% during the 2nd quarter. Point72 Hong Kong Ltd now owns 2,904 shares of the transportation company’s stock valued at $106,000 after buying an additional 1,730 shares in the last quarter. Sei Investments Co. boosted its holdings in shares of Spirit Airlines by 127.9% during the 2nd quarter. Sei Investments Co. now owns 3,934 shares of the transportation company’s stock valued at $143,000 after buying an additional 2,208 shares in the last quarter. BNP Paribas Arbitrage SA boosted its holdings in shares of Spirit Airlines by 286.2% during the 2nd quarter. BNP Paribas Arbitrage SA now owns 4,445 shares of the transportation company’s stock valued at $162,000 after buying an additional 3,294 shares in the last quarter. Finally, Janus Henderson Group PLC bought a new stake in shares of Spirit Airlines during the 2nd quarter valued at $211,000.
About Spirit Airlines
Spirit Airlines, Inc is an airline company. The Company provides air transportation for passengers. As of December 31, 2016, its all-Airbus Fit Fleet operated over 420 daily flights to 59 destinations in the United States, Caribbean and Latin America. As of December 31, 2016, it had a fleet of 95 Airbus single-aisle aircraft, which are referred to as A320 family aircraft and include the A319, A320 and A321 models, which have common design and equipment but differ most notably in fuselage length, service range and seat capacity.
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