Controladora Vuela Compania de Aviacion (NYSE:VLRS) Sees Large Volume Increase – Should You Buy?

Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (NYSE:VLRS) shares saw strong trading volume on Wednesday. 2,042,936 shares traded hands during mid-day trading, an increase of 215% from the average daily volume of 647,905 shares. The stock last traded at $6.0760 and had previously closed at $6.10.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on VLRS shares. Zacks Research lowered Controladora Vuela Compania de Aviacion from a “hold” rating to a “strong sell” rating in a report on Thursday, October 15th. UBS Group upped their target price on shares of Controladora Vuela Compania de Aviacion from $9.00 to $11.00 and gave the stock a “buy” rating in a report on Wednesday, August 5th. The Goldman Sachs Group decreased their price target on shares of Controladora Vuela Compania de Aviacion from $8.60 to $7.70 and set a “neutral” rating on the stock in a research note on Tuesday, August 11th. Wall Street Zen lowered shares of Controladora Vuela Compania de Aviacion from a “hold” rating to a “sell” rating in a research report on Saturday. Finally, Weiss Ratings downgraded shares of Controladora Vuela Compania de Aviacion from a “sell (d)” rating to a “sell (e+)” rating in a report on Friday, July 31st. Three equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $9.40.

Controladora Vuela Compania de Aviacion Stock Performance

The company has a debt-to-equity ratio of 6.78, a quick ratio of 0.64 and a current ratio of 0.64. The firm’s 50-day moving average price is $6.48 and its two-hundred day moving average price is $7.76. The stock has a market cap of $711.84 million, a price-to-earnings ratio of -3.17 and a beta of 1.81.

Controladora Vuela Compania de Aviacion (NYSE:VLRS) last issued its earnings results on Monday, October 26th. The transportation company reported ($0.23) EPS for the quarter, topping analysts’ consensus estimates of ($0.61) by $0.38. Controladora Vuela Compania de Aviacion had a negative net margin of 5.71% and a negative return on equity of 93.91%. The company had revenue of $1.04 billion for the quarter, compared to the consensus estimate of $999.85 million. On average, analysts expect that Controladora Vuela Compania de Aviacion, S.A.B. de C.V. will post -2.49 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Bank of America Corp DE increased its stake in Controladora Vuela Compania de Aviacion by 55.4% during the first quarter. Bank of America Corp DE now owns 588,981 shares of the transportation company’s stock worth $4,264,000 after acquiring an additional 209,978 shares during the last quarter. Dorsey Wright & Associates acquired a new position in shares of Controladora Vuela Compania de Aviacion in the 1st quarter valued at $1,840,000. Diversify Wealth Management LLC purchased a new position in shares of Controladora Vuela Compania de Aviacion during the 1st quarter worth $1,279,000. Empowered Funds LLC purchased a new position in shares of Controladora Vuela Compania de Aviacion during the 1st quarter worth $1,103,000. Finally, AdvisorShares Investments LLC purchased a new position in shares of Controladora Vuela Compania de Aviacion during the 1st quarter worth $860,000. 53.32% of the stock is currently owned by hedge funds and other institutional investors.

Controladora Vuela Compania de Aviacion Company Profile

Controladora Vuela Compañía de Aviación, SAB. de C.V., operating under the Volaris brand, is a Mexican ultra-low-cost airline. The company provides scheduled passenger air transportation, along with ancillary services such as baggage, seat selection and other travel-related offerings.

Volaris began operations in 2006 and serves a broad network of destinations in Mexico, the United States, and Central America. Its business model emphasizes affordable base fares, high aircraft utilization and the separate sale of optional services.

Controladora Vuela is headquartered in Mexico City and is listed on the New York Stock Exchange under the symbol VLRS.