United Airlines (NASDAQ:UAL) Announces Quarterly Earnings Results, Beats Expectations By $0.13 EPS

United Airlines (NASDAQ:UAL) released its quarterly earnings results on Tuesday. The transportation company reported $3.10 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.97 by $0.13, Zacks reports. United Airlines had a net margin of 5.64% and a return on equity of 26.94%.

United Airlines Trading Down 4.4%

UAL stock traded down $4.99 during mid-day trading on Tuesday, reaching $108.50. The company had a trading volume of 7,339,694 shares, compared to its average volume of 4,181,810. The company has a market capitalization of $35.12 billion, a PE ratio of 10.87, a price-to-earnings-growth ratio of 0.80 and a beta of 1.31. The firm has a 50 day moving average of $107.08 and a 200 day moving average of $100.51. United Airlines has a 12 month low of $52.00 and a 12 month high of $119.21. The company has a debt-to-equity ratio of 1.45, a current ratio of 0.67 and a quick ratio of 0.61.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on the stock. UBS Group increased their price target on shares of United Airlines from $142.00 to $145.00 and gave the company a “buy” rating in a report on Tuesday, January 6th. Morgan Stanley set a $150.00 price objective on United Airlines and gave the company an “overweight” rating in a research note on Thursday, January 8th. Citigroup lifted their target price on United Airlines from $132.00 to $153.00 and gave the stock a “buy” rating in a report on Wednesday, January 7th. TD Cowen boosted their target price on United Airlines from $125.00 to $138.00 and gave the company a “buy” rating in a research report on Wednesday, January 7th. Finally, Evercore ISI lifted their price objective on shares of United Airlines from $105.00 to $135.00 and gave the stock an “outperform” rating in a research note on Monday, September 29th. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, United Airlines has a consensus rating of “Moderate Buy” and an average target price of $134.94.

Key Stories Impacting United Airlines

Here are the key news stories impacting United Airlines this week:

• Positive Sentiment: High-profile endorsement: Jim Cramer called the “big five travel” stocks, including United, “terrific,” which can lift retail/inflow momentum into UAL. Jim Cramer says the “big five travel” including United Airlines “are all terrific”
• Positive Sentiment: Business travel rebound: Coverage notes corporate/business air travel has returned, supporting higher-yield traffic and revenue per seat for network carriers like United. This is a favorable demand mix if sustained. Business air travel is back, and that’s good news for this airline
• Positive Sentiment: Improving returns: Analysis pointing to growth in returns on capital signals improving fundamentals that can support earnings expansion and investor patience on valuation. United Airlines Holdings (NASDAQ:UAL) Is Experiencing Growth In Returns On Capital
• Neutral Sentiment: Earnings catalyst: UAL reports Q4 after the close today; several previews and analyst-note roundups summarize expectations and recent forecast revisions — this creates a binary catalyst that can move the stock either way depending on yields, unit revenues and margin trends. United Airlines Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call An Overview of United Airlines Holdings’s Earnings Outlook for a Busy Week on MLK Day
• Neutral Sentiment: Market previews & strategy: Commentary in Barron’s and Yahoo flags that airline stocks depend on continued revenue strength, cost control and fleet/capacity decisions — useful context but not an immediate directional driver. United Airlines Reports Earnings Tuesday. What Airline Stocks Need to Fly Higher. United Airlines Stock Poised for Big Move Ahead of Q4 Earnings
• Negative Sentiment: Macro headwinds: U.S. futures fell on broader tariff/geopolitical concerns, creating downward pressure on cyclical names including airlines. That macro move can amplify an earnings miss. Stock Market Today: S&P 500, Nasdaq Futures Plunge As Trump Escalates Tariff Threats—Alibaba, United Airlines, Netflix In Focus
• Negative Sentiment: Safety incident: A reported near crash-landing after a mechanical issue in Orlando raises reputational and potential short-term regulatory/safety concerns that could pressure sentiment if further details emerge. WATCH | United Airlines flight nearly crash-lands at Orlando after ‘mechanical issue’. Here is what happened

Insider Transactions at United Airlines

In other United Airlines news, CEO J Scott Kirby sold 120,000 shares of the firm’s stock in a transaction on Wednesday, December 3rd. The stock was sold at an average price of $107.86, for a total transaction of $12,943,200.00. Following the transaction, the chief executive officer directly owned 666,535 shares in the company, valued at $71,892,465.10. This trade represents a 15.26% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 0.63% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. AXA S.A. lifted its stake in shares of United Airlines by 0.8% during the 2nd quarter. AXA S.A. now owns 15,465 shares of the transportation company’s stock worth $1,231,000 after purchasing an additional 121 shares during the last quarter. Integrated Wealth Concepts LLC raised its holdings in United Airlines by 1.6% in the third quarter. Integrated Wealth Concepts LLC now owns 11,404 shares of the transportation company’s stock worth $1,100,000 after purchasing an additional 177 shares in the last quarter. Larson Financial Group LLC lifted its position in shares of United Airlines by 13.3% during the third quarter. Larson Financial Group LLC now owns 1,581 shares of the transportation company’s stock valued at $153,000 after buying an additional 185 shares during the last quarter. GeoWealth Management LLC boosted its holdings in shares of United Airlines by 11.1% in the 3rd quarter. GeoWealth Management LLC now owns 2,071 shares of the transportation company’s stock valued at $200,000 after buying an additional 207 shares in the last quarter. Finally, Sunbelt Securities Inc. boosted its holdings in shares of United Airlines by 12.8% in the 3rd quarter. Sunbelt Securities Inc. now owns 1,899 shares of the transportation company’s stock valued at $183,000 after buying an additional 216 shares in the last quarter. 69.69% of the stock is currently owned by hedge funds and other institutional investors.

About United Airlines

United Airlines Holdings, Inc operates United Airlines, a major U.S. full-service passenger carrier providing scheduled air transportation for passengers and cargo. The company offers a comprehensive route network that covers domestic markets across the United States as well as extensive international service to Europe, Asia, Latin America, and the Pacific. United operates a mixed fleet of narrow- and wide-body aircraft on point-to-point and hub-and-spoke routes, and supports corporate and leisure travel through offerings such as premium cabins, basic economy, and ancillary services including baggage, seat selection and in-flight amenities.

In addition to passenger operations, United provides cargo services through United Cargo, handling freight, mail and specialized shipments.