United Airlines has received an increased price target of $138.00 from TD Cowen, up from a previous target of $125.00. This adjustment, highlighted in a research note issued on October 18, 2023, reflects a “buy” rating for the airline’s stock, indicating a potential upside of 17.6% based on its last closing price.
Several other financial analysts have recently provided their assessments regarding United Airlines. Morgan Stanley reaffirmed its “overweight” rating, setting a target price of $140.00 on October 17, 2023. Meanwhile, Bank of America raised its price target from $120.00 to $130.00 and also rated the stock as a “buy.” On October 20, 2023, JPMorgan Chase & Co. increased its target from $149.00 to $156.00, maintaining an “overweight” rating.
Analysts’ opinions have varied, with one analyst recommending a “Strong Buy,” thirteen suggesting a “Buy,” and two assigning a “Hold” rating. According to data from MarketBeat, the stock holds an average rating of “Moderate Buy” with a consensus price target of $129.93.
Recent Earnings Report
United Airlines released its quarterly earnings data on October 15, 2023. The company reported earnings per share (EPS) of $2.78, surpassing analysts’ expectations of $2.65 by $0.13. Revenue for the quarter stood at $15.23 billion, slightly below the anticipated $15.31 billion. The airline achieved a net margin of 5.64% and a return on equity of 26.94%. Revenue growth was recorded at 2.6% compared to the same period last year, although EPS fell from $3.33 in the prior year.
Looking ahead, United Airlines has projected its fourth-quarter EPS for 2025 to be between $3.00 and $3.50. Analysts forecast an overall EPS of $12.96 for the current year.
Insider Activity and Institutional Investments
In other developments, J Scott Kirby, the Chief Executive Officer of United Airlines, sold 120,000 shares on December 3, 2023, at an average price of $107.86. This transaction totaled approximately $12.94 million, resulting in a 15.26% decrease in his shareholding, which now stands at 666,535 shares valued at around $71.89 million. This sale was reported in a filing with the Securities and Exchange Commission.
Institutional investors continue to play a significant role in United Airlines’ stock ownership, holding 69.69% of the company. Recently, several hedge funds have made new investments, including Financial Consulate Inc. and JPL Wealth Management LLC, each acquiring stakes valued at approximately $29,000 during the third quarter. Other notable investments include Abich Financial Wealth Management LLC at $34,000 and Quent Capital LLC at $40,000.
United Airlines continues to strengthen its position as a leading full-service carrier, offering a diverse route network that spans domestic and international markets, catering to both passenger and cargo needs.
