United Airlines (NASDAQ:UAL) Announces Quarterly Earnings Results

United Airlines (NASDAQ:UAL) posted its quarterly earnings data on Tuesday. The transportation company reported $3.10 earnings per share for the quarter, topping 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 Stock Performance

Shares of United Airlines stock traded down $4.92 on Tuesday, hitting $108.57. The stock had a trading volume of 8,720,843 shares, compared to its average volume of 4,271,873. The stock has a market cap of $35.15 billion, a price-to-earnings ratio of 10.88, a P/E/G ratio of 0.80 and a beta of 1.31. The company has a current ratio of 0.67, a quick ratio of 0.61 and a debt-to-equity ratio of 1.45. United Airlines has a 52-week low of $52.00 and a 52-week high of $119.21. The company’s 50 day moving average price is $107.08 and its 200 day moving average price is $100.51.

United Airlines News Roundup

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

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the company. BMO Capital Markets raised shares of United Airlines to a “strong-buy” rating in a research note on Tuesday, December 9th. Evercore ISI lifted their target price on shares of United Airlines from $105.00 to $135.00 and gave the company an “outperform” rating in a report on Monday, September 29th. Loop Capital set a $110.00 price target on United Airlines in a research note on Tuesday, October 21st. Wall Street Zen cut United Airlines from a “buy” rating to a “hold” rating in a research note on Saturday, November 8th. Finally, UBS Group increased their target price on United Airlines from $142.00 to $145.00 and gave the stock a “buy” rating in a research note on Tuesday, January 6th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat, United Airlines presently has an average rating of “Moderate Buy” and an average target price of $134.94.

Insider Buying and Selling

In other United Airlines news, CEO J Scott Kirby sold 120,000 shares of the company’s stock in a transaction on Wednesday, December 3rd. The shares were sold at an average price of $107.86, for a total transaction of $12,943,200.00. Following the completion of the transaction, the chief executive officer owned 666,535 shares in the company, valued at approximately $71,892,465.10. This represents a 15.26% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.63% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Holocene Advisors LP purchased a new position in United Airlines in the 2nd quarter valued at about $84,753,000. Freestone Grove Partners LP lifted its stake in shares of United Airlines by 1,282.2% during the third quarter. Freestone Grove Partners LP now owns 776,783 shares of the transportation company’s stock valued at $74,960,000 after buying an additional 720,583 shares during the period. Electron Capital Partners LLC acquired a new stake in United Airlines during the third quarter worth approximately $56,837,000. Amundi grew its stake in United Airlines by 68.1% in the 3rd quarter. Amundi now owns 998,344 shares of the transportation company’s stock worth $96,909,000 after acquiring an additional 404,304 shares during the period. Finally, Worldquant Millennium Advisors LLC raised its holdings in United Airlines by 929.7% in the 2nd quarter. Worldquant Millennium Advisors LLC now owns 405,247 shares of the transportation company’s stock valued at $32,270,000 after acquiring an additional 365,890 shares during the last quarter. 69.69% of the stock is currently owned by institutional investors and hedge funds.

United Airlines Company Profile

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.