JetBlue Airways (NASDAQ:JBLU) Reaches New 1-Year Low Following Weak Earnings

JetBlue Airways Corporation (NASDAQ:JBLU)’s stock price reached a new 52-week low on Monday following a dissappointing earnings announcement. The stock traded as low as $2.38 and last traded at $2.3550, with a volume of 9,262,206 shares traded. The stock had previously closed at $2.63.

The transportation company reported ($0.60) earnings per share for the quarter, missing the consensus estimate of ($0.55) by ($0.05). The firm had revenue of $2.81 billion for the quarter, compared to analysts’ expectations of $2.83 billion. During the same quarter in the prior year, the business posted ($0.40) EPS. The business’s quarterly revenue was up 21.1% on a year-over-year basis.

Key JetBlue Airways News

Here are the key news stories impacting JetBlue Airways this week:

• Positive Sentiment: CEO Joanna Geraghty said JetBlue is not in discussions with creditors and is not considering debt restructuring, easing recent concerns that the airline could require a restructuring or bankruptcy process. Exclusive—JetBlue CEO says no creditor talks, debt restructuring not under consideration
• Positive Sentiment: Management reported approximately $2.2 billion in liquidity and highlighted resilient demand, stronger yields and higher fares that helped offset more of the fuel-cost increase than initially expected. JetBlue Shares Skyrocket as Airline Reports Liquidity and Raises Revenue Forecast
• Positive Sentiment: The airline provided a more favorable fourth-quarter outlook, calling for revenue growth and margin improvement, while reaffirming its objective of returning to profitability by 2028. Investors viewed the guidance as evidence that the cost-cutting and premium-revenue strategy is gaining traction. JetBlue Surges on Stronger Q4 Revenue Guidance and Margin Improvement
• Neutral Sentiment: Third-quarter revenue rose 21.1% year over year to $2.81 billion, but the result was slightly below analysts’ expectations. The company’s performance indicates improving demand, though profitability remains unresolved.
• Negative Sentiment: JetBlue posted a $0.60-per-share loss, worse than the expected $0.55 loss and the prior-year $0.40 loss. Elevated fuel prices, linked in coverage to the conflict in Iran, continue to pressure margins, while the airline carries substantial debt and remains below its longer-term moving averages. JetBlue Posts Bigger Loss on Fuel Costs

Analysts Set New Price Targets

A number of brokerages recently commented on JBLU. Barclays decreased their target price on shares of JetBlue Airways from $7.00 to $5.00 and set an “equal weight” rating on the stock in a research report on Friday, September 11th. Raymond James Financial reiterated an “underperform” rating on shares of JetBlue Airways in a report on Monday, July 6th. TD Cowen lowered their target price on JetBlue Airways from $6.00 to $5.00 and set a “hold” rating for the company in a research note on Monday, August 24th. Citigroup upgraded JetBlue Airways from a “sell” rating to a “neutral” rating and dropped their target price for the company from $5.30 to $4.50 in a report on Tuesday, October 6th. Finally, Susquehanna reduced their price target on JetBlue Airways from $6.00 to $4.00 and set a “neutral” rating on the stock in a research report on Wednesday, October 7th. Nine research analysts have rated the stock with a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Reduce” and an average price target of $4.98.

Insider Activity

In other JetBlue Airways news, CFO Ursula Hurley sold 77,253 shares of the stock in a transaction that occurred on Thursday, July 30th. The stock was sold at an average price of $5.76, for a total value of $444,977.28. Following the completion of the sale, the chief financial officer owned 211,099 shares in the company, valued at approximately $1,215,930.24. This trade represents a 26.79% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 83,253 shares of company stock valued at $474,477 over the last quarter. 2.41% of the stock is owned by company insiders.

Hedge Funds Weigh In On JetBlue Airways

Several hedge funds have recently made changes to their positions in JBLU. Bank of America Corp DE purchased a new position in shares of JetBlue Airways in the 2nd quarter valued at approximately $20,022,000. Quantinno Capital Management LP raised its holdings in JetBlue Airways by 509.5% in the first quarter. Quantinno Capital Management LP now owns 649,600 shares of the transportation company’s stock worth $2,871,000 after purchasing an additional 543,017 shares in the last quarter. Counterpoint Mutual Funds LLC raised its holdings in JetBlue Airways by 91.1% in the third quarter. Counterpoint Mutual Funds LLC now owns 2,297,994 shares of the transportation company’s stock worth $9,721,000 after purchasing an additional 1,095,610 shares in the last quarter. WINTON GROUP Ltd raised its holdings in JetBlue Airways by 95.6% in the second quarter. WINTON GROUP Ltd now owns 553,212 shares of the transportation company’s stock worth $3,170,000 after purchasing an additional 270,358 shares in the last quarter. Finally, GSA Capital Partners LLP purchased a new position in JetBlue Airways during the second quarter valued at $1,725,000. 83.71% of the stock is owned by hedge funds and other institutional investors.

JetBlue Airways Price Performance

The firm has a market cap of $1.06 billion, a PE ratio of -1.05 and a beta of 1.77. The firm has a 50-day simple moving average of $4.10 and a 200 day simple moving average of $4.95.

JetBlue Airways Company Profile

JetBlue Airways Corporation is a U.S.-based passenger airline that provides scheduled air transportation to destinations across the United States, the Caribbean, Latin America and select locations in Europe. The company operates primarily from focus cities including New York, Boston, Fort Lauderdale, Orlando and Los Angeles, with a network designed to connect major metropolitan areas and leisure destinations.

JetBlue offers multiple classes and service options, including standard economy seating, extra-legroom EvenMore seats and its premium Mint service on select routes.