Controladora Vuela Compania de Aviacion (NYSE:VLRS) Stock Jumps 7.1% – Should You Buy?

Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (NYSE:VLRS) shares were up 7.1% during trading on Monday. The stock traded as high as $6.77 and last traded at $6.8650. 45,783 shares were traded during mid-day trading, a decline of 93% from the average session volume of 654,586 shares. The stock had previously closed at $6.41.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on VLRS. UBS Group increased their target price on Controladora Vuela Compania de Aviacion from $9.00 to $11.00 and gave the company a “buy” rating in a report on Wednesday, August 5th. The Goldman Sachs Group reduced their price target on Controladora Vuela Compania de Aviacion from $8.60 to $7.70 and set a “neutral” rating on the stock in a research report on Tuesday, August 11th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Controladora Vuela Compania de Aviacion in a research note on Thursday, October 29th. Zacks Research downgraded Controladora Vuela Compania de Aviacion from a “hold” rating to a “strong sell” rating in a research report on Thursday, October 15th. Finally, Wall Street Zen upgraded Controladora Vuela Compania de Aviacion from a “sell” rating to a “hold” rating in a research report on Sunday. Three analysts have rated the stock with a Buy rating, three have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $9.40.

Controladora Vuela Compania de Aviacion Price Performance

The stock has a market cap of $801.62 million, a PE ratio of -3.58 and a beta of 1.94. The business’s 50-day simple moving average is $6.42 and its 200-day simple moving average is $7.69. The company has a quick ratio of 0.66, a current ratio of 0.67 and a debt-to-equity ratio of 10.31.

Controladora Vuela Compania de Aviacion (NYSE:VLRS) last posted its earnings results on Monday, October 26th. The transportation company reported ($0.23) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.04) by ($0.19). The firm had revenue of $1.04 billion for the quarter, compared to analysts’ expectations of $982.29 million. Controladora Vuela Compania de Aviacion had a negative return on equity of 151.52% and a negative net margin of 6.20%. On average, research analysts expect that Controladora Vuela Compania de Aviacion, S.A.B. de C.V. will post -2.45 EPS for the current fiscal year.

Institutional Investors Weigh In On Controladora Vuela Compania de Aviacion

Large investors have recently made changes to their positions in the business. GAMMA Investing LLC lifted its stake in Controladora Vuela Compania de Aviacion by 238.7% in the second quarter. GAMMA Investing LLC now owns 3,265 shares of the transportation company’s stock worth $31,000 after acquiring an additional 2,301 shares during the period. Royal Bank of Canada boosted its holdings in Controladora Vuela Compania de Aviacion by 6,204.9% in the first quarter. Royal Bank of Canada now owns 7,755 shares of the transportation company’s stock valued at $56,000 after acquiring an additional 7,632 shares in the last quarter. FNY Investment Advisers LLC purchased a new position in Controladora Vuela Compania de Aviacion during the 2nd quarter valued at $187,000. Y Intercept Hong Kong Ltd purchased a new position in Controladora Vuela Compania de Aviacion during the 1st quarter valued at $177,000. Finally, Personal CFO Solutions LLC purchased a new position in Controladora Vuela Compania de Aviacion during the 1st quarter valued at $221,000. 53.32% of the stock is currently owned by institutional investors.

Controladora Vuela Compania de Aviacion Company Profile

Controladora Vuela Compañía de Aviación, SAB. de C.V., operating under the Volaris brand, is a Mexican ultra-low-cost airline. The company provides scheduled passenger air transportation, along with ancillary services such as baggage, seat selection and other travel-related offerings.

Volaris began operations in 2006 and serves a broad network of destinations in Mexico, the United States, and Central America. Its business model emphasizes affordable base fares, high aircraft utilization and the separate sale of optional services.

Controladora Vuela is headquartered in Mexico City and is listed on the New York Stock Exchange under the symbol VLRS.