Argus Issues Pessimistic Forecast for United Airlines (NASDAQ:UAL) Stock Price

United Airlines (NASDAQ:UAL) had its price objective reduced by analysts at Argus from $140.00 to $125.00 in a research note issued to investors on Thursday, Benzinga reports. The brokerage currently has a “buy” rating on the transportation company’s stock. Argus’ price target would suggest a potential upside of 22.40% from the stock’s current price.

UAL has been the subject of a number of other research reports. Wells Fargo & Company dropped their target price on United Airlines from $165.00 to $160.00 and set an “overweight” rating for the company in a report on Tuesday, October 6th. Weiss Ratings reissued a “hold (c+)” rating on shares of United Airlines in a research note on Thursday, October 15th. Barclays lowered their target price on shares of United Airlines from $175.00 to $160.00 and set an “overweight” rating for the company in a report on Friday, September 11th. Bank of America raised their target price on shares of United Airlines from $145.00 to $150.00 and gave the stock a “buy” rating in a report on Wednesday, July 1st. Finally, Zacks Research cut shares of United Airlines from a “hold” rating to a “strong sell” rating in a research note on Monday, September 28th. Sixteen investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $156.81.

United Airlines Stock Performance

UAL stock traded up $0.46 on Thursday, hitting $102.13. The company had a trading volume of 1,701,896 shares, compared to its average volume of 5,702,400. The company has a current ratio of 0.78, a quick ratio of 0.72 and a debt-to-equity ratio of 1.45. United Airlines has a 12-month low of $84.64 and a 12-month high of $138.77. The stock has a market cap of $33.15 billion, a price-to-earnings ratio of 9.32, a P/E/G ratio of 1.13 and a beta of 1.30. The stock’s 50-day simple moving average is $109.91 and its 200 day simple moving average is $110.71.

United Airlines (NASDAQ:UAL) last announced its earnings results on Tuesday, October 20th. The transportation company reported $2.54 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.57 by ($0.03). United Airlines had a net margin of 5.46% and a return on equity of 18.09%. The business had revenue of $17.88 billion for the quarter, compared to the consensus estimate of $17.89 billion. During the same quarter last year, the firm posted $2.78 earnings per share. The business’s quarterly revenue was up 17.4% compared to the same quarter last year. As a group, equities research analysts expect that United Airlines will post 7.87 earnings per share for the current fiscal year.

Insider Activity

In other United Airlines news, EVP Torbjorn Enqvist sold 20,000 shares of the stock in a transaction on Friday, July 24th. The stock was sold at an average price of $119.91, for a total transaction of $2,398,200.00. Following the sale, the executive vice president owned 114,800 shares of the company’s stock, valued at approximately $13,765,668. This trade represents a 14.84% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Andrew Nocella sold 5,000 shares of United Airlines stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $117.00, for a total value of $585,000.00. Following the completion of the transaction, the executive vice president owned 214,955 shares in the company, valued at $25,149,735. This trade represents a 2.27% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 62,308 shares of company stock worth $7,520,754. Corporate insiders own 0.86% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Primecap Management Co. CA acquired a new position in United Airlines in the 2nd quarter worth approximately $2,238,617,000. State Street Corp lifted its stake in United Airlines by 1.4% during the 2nd quarter. State Street Corp now owns 11,788,111 shares of the transportation company’s stock valued at $1,603,065,000 after acquiring an additional 162,283 shares during the period. Dimensional Fund Advisors LP boosted its holdings in shares of United Airlines by 3.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 5,664,538 shares of the transportation company’s stock valued at $521,330,000 after acquiring an additional 190,017 shares during the last quarter. Amundi boosted its holdings in shares of United Airlines by 57.4% in the 2nd quarter. Amundi now owns 1,916,864 shares of the transportation company’s stock valued at $260,674,000 after acquiring an additional 699,334 shares during the last quarter. Finally, Assetmark Inc. boosted its holdings in shares of United Airlines by 1.4% in the 1st quarter. Assetmark Inc. now owns 1,617,257 shares of the transportation company’s stock valued at $148,901,000 after acquiring an additional 22,341 shares during the last quarter. 69.69% of the stock is owned by institutional investors and hedge funds.

United Airlines News Summary

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

• Positive Sentiment: Strong revenue and demand outlook: United reported third-quarter revenue of approximately $17.9 billion, up 17.4% year over year, and expects fourth-quarter revenue growth to exceed 20%. High passenger demand, strong load factors and continued customer spending helped outweigh concerns about profitability. United Airlines stock trades up
• Positive Sentiment: Analyst remains constructive: Susquehanna lowered its UAL price target from $150 to $130 but maintained a positive rating, implying substantial upside from the stock’s reference price. The target cut reflects higher fuel costs rather than a change in the firm’s longer-term view. United Airlines analyst price target
• Neutral Sentiment: Premium strategy and infrastructure investment: Management is targeting double-digit margins by expanding premium travel offerings. United also plans to open an 800-seat lounge at Houston’s George Bush Intercontinental Airport, supporting its premium-brand strategy but adding significant capital and operating costs. United Airlines targets double-digit margins
• Neutral Sentiment: Liquidity and fleet developments: United increased its revolving credit facility from $3 billion to $5 billion, improving financial flexibility. FAA certification of Boeing’s 737 MAX 10 could also help resolve delivery delays for aircraft ordered by United, although the benefits are longer term. United Airlines liquidity update
• Negative Sentiment: Fuel costs are pressuring earnings: Third-quarter adjusted EPS of $2.54 fell short of estimates and declined from $2.78 a year earlier. United’s fourth-quarter EPS guidance of $0.50–$1.50 is well below the $1.81 consensus estimate, while management expects elevated fuel costs and margin challenges to persist into 2027. United Airlines forecasts fourth-quarter profit below estimates
• Negative Sentiment: Reputational and political distractions: CEO Scott Kirby’s support for a wealth tax has drawn criticism because of his compensation and could create negative publicity, though the direct financial impact on UAL appears limited. United Airlines CEO wealth tax comments

United Airlines Company Profile

United Airlines Holdings, Inc is the parent company of United Airlines, a major U.S. commercial airline headquartered in Chicago, Illinois. The company provides scheduled passenger air transportation and air cargo services, connecting customers across the United States and to international destinations.

United operates a broad network serving North America, Latin America, Europe, Asia, Africa and Oceania. Its operations are supported by hubs in major U.S. cities, including Chicago, Denver, Houston, Los Angeles, Newark, San Francisco and Washington, DC, as well as an extensive network of regional carriers operating under the United Express brand.

The company offers several travel classes and related services, including premium-cabin seating, onboard amenities, airport lounges and the MileagePlus customer loyalty program.