J. Scott Kirby, the CEO of United Airlines Holdings Inc, divested 120,000 shares of the company’s stock on December 3, 2023. The shares were sold at an average price of $107.86, resulting in a total transaction value of $12,943,200. Following this sale, Kirby retains ownership of 666,535 shares, with a current valuation of approximately $71,892,465.10. This sale represents a 15.26% reduction in his stake in the airline.
The details of the transaction were revealed in a filing with the Securities and Exchange Commission, which is publicly accessible.
Market Reaction and Company Performance
On the same day of the transaction, shares of United Airlines (NASDAQ: UAL) experienced a 3.9% increase, trading up by $4.10 to reach $108.48. During this trading session, a total of 6,275,236 shares changed hands, slightly below the average volume of 7,352,110 shares. The airline’s 50-day moving average price stands at $97.22, while its 200-day moving average is $92.44.
United Airlines currently holds a market capitalization of $35.12 billion, with a price-to-earnings ratio of 10.87 and a price-to-earnings-growth ratio of 0.93. The company has experienced a 12-month low of $52.00 and a high of $116.00. Its debt-to-equity ratio is 1.45, with a quick ratio of 0.61 and a current ratio of 0.67.
Quarterly Earnings and Future Projections
On October 15, 2023, United Airlines announced its quarterly earnings, reporting earnings per share of $2.78. This exceeded analysts’ expectations, which had predicted earnings of $2.65 by $0.13. The airline’s net margin stands at 5.64%, and it boasts a return on equity of 26.94%. Revenue for the quarter was recorded at $15.23 billion, slightly below the anticipated $15.31 billion. This marks a 2.6% increase compared to the same quarter last year.
Looking ahead, United Airlines has set a target for Q4 2025, projecting earnings per share between 3.000 and 3.500. Analysts predict an average earnings per share of 12.96 for the current fiscal year.
Institutional investors have shown considerable interest in United Airlines, with several significant transactions occurring recently. For instance, Alyeska Investment Group L.P. increased its holdings by 86.4% in the first quarter, now owning 3,985,560 shares valued at approximately $275,203,000. Other notable investors include Norges Bank, which acquired a new position worth $143,035,000, and AQR Capital Management LLC, which raised its stake by 334.6%.
Currently, institutional investors hold 69.69% of United Airlines’ stock, indicating strong market confidence in the airline.
United Airlines Holdings Inc provides comprehensive air transportation services across multiple continents, including North America, Asia, Europe, Africa, the Pacific, the Middle East, and Latin America. In addition to passenger transport, the company offers cargo services and various support functions such as catering and ground handling.
