Zacks Investment Research downgraded shares of Spirit Airlines (NASDAQ:SAVE) from a buy rating to a hold rating in a research note issued to investors on Wednesday morning.
According to Zacks, “Shares of Spirit Airlines have outperformed the industry in a year. The company has been benefitting from impressive cost performance driven by operational effciiency. Robust passenger revenues due to the strong demand for air travel is also encouraging. Impressive passnger revenues are expected to boost the top line going forward. The company's total unit revenue view for the third quarter is also encouraging. Total revenue per available seat mile (TRASM) is expected to increase in the range of 2-3% despite adversities. However, high fuel costs are limiting bottom line growth. Fuel costs are expected to be $2.33 per gallon, in the third quarter, much higher than $1.75 reported in the year ago quarter. Capacity overexpansion (due to capacity expansion outweighing traffic growth) is another cause of concern. The company's high debt levels add to the woes.”
Several other equities analysts also recently commented on SAVE. Buckingham Research upped their price objective on Spirit Airlines from $40.00 to $42.00 and gave the company a neutral rating in a research note on Wednesday, June 13th. Citigroup dropped their price objective on Spirit Airlines from $53.00 to $50.00 and set a buy rating on the stock in a research note on Tuesday, May 29th. Macquarie upped their price objective on Spirit Airlines from $58.00 to $60.00 and gave the company an outperform rating in a research note on Tuesday, August 28th. Cowen upped their price objective on Spirit Airlines from $39.00 to $46.00 and gave the company a market perform rating in a research note on Friday, July 27th. Finally, Morgan Stanley upped their price objective on Spirit Airlines from $41.00 to $44.00 and gave the company an equal weight rating in a research note on Monday, July 16th. Six investment analysts have rated the stock with a hold rating, ten have given a buy rating and one has assigned a strong buy rating to the stock. The company currently has an average rating of Buy and an average target price of $53.15.
Spirit Airlines (NASDAQ:SAVE) last announced its earnings results on Wednesday, July 25th. The transportation company reported $1.11 earnings per share for the quarter, topping analysts’ consensus estimates of $1.09 by $0.02. Spirit Airlines had a return on equity of 15.86% and a net margin of 8.55%. The firm had revenue of $851.80 million for the quarter, compared to the consensus estimate of $851.83 million. During the same quarter in the previous year, the business earned $1.14 EPS. The company’s revenue was up 21.4% compared to the same quarter last year. equities research analysts predict that Spirit Airlines will post 3.08 earnings per share for the current year.
In other Spirit Airlines news, SVP Rocky Wiggins sold 566 shares of the stock in a transaction on Tuesday, September 11th. The stock was sold at an average price of $47.89, for a total transaction of $27,105.74. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Robert D. Johnson sold 750 shares of the stock in a transaction on Tuesday, September 4th. The stock was sold at an average price of $47.53, for a total value of $35,647.50. The disclosure for this sale can be found here. 0.33% of the stock is currently owned by corporate insiders.
Several large investors have recently bought and sold shares of SAVE. Comerica Bank lifted its position in shares of Spirit Airlines by 3.7% during the first quarter. Comerica Bank now owns 71,224 shares of the transportation company’s stock worth $2,706,000 after acquiring an additional 2,560 shares in the last quarter. Boston Partners purchased a new stake in shares of Spirit Airlines during the first quarter worth $1,941,000. Prudential Financial Inc. lifted its position in shares of Spirit Airlines by 18.1% during the first quarter. Prudential Financial Inc. now owns 265,837 shares of the transportation company’s stock worth $10,043,000 after acquiring an additional 40,700 shares in the last quarter. Quantitative Systematic Strategies LLC purchased a new stake in shares of Spirit Airlines during the first quarter worth $413,000. Finally, Schwab Charles Investment Management Inc. lifted its position in shares of Spirit Airlines by 2.1% during the first quarter. Schwab Charles Investment Management Inc. now owns 382,763 shares of the transportation company’s stock worth $14,461,000 after acquiring an additional 7,756 shares in the last quarter.
About Spirit Airlines
Spirit Airlines, Inc is an airline company. The Company provides air transportation for passengers. As of December 31, 2016, its all-Airbus Fit Fleet operated over 420 daily flights to 59 destinations in the United States, Caribbean and Latin America. As of December 31, 2016, it had a fleet of 95 Airbus single-aisle aircraft, which are referred to as A320 family aircraft and include the A319, A320 and A321 models, which have common design and equipment but differ most notably in fuselage length, service range and seat capacity.
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