Controladora Vuela Compania de Aviacion (NYSE:VLRS) Reaches New 1-Year Low – Time to Sell?

Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (NYSE:VLRS) reached a new 52-week low during mid-day trading on Tuesday. The company traded as low as $5.76 and last traded at $5.7650, with a volume of 296,224 shares changing hands. The stock had previously closed at $5.88.

Wall Street Analysts Forecast Growth

VLRS has been the topic of several analyst reports. Weiss Ratings downgraded Controladora Vuela Compania de Aviacion from a “sell (d)” rating to a “sell (e+)” rating in a research report on Friday, July 31st. Zacks Research lowered Controladora Vuela Compania de Aviacion from a “hold” rating to a “strong sell” rating in a research note on Thursday, October 15th. The Goldman Sachs Group decreased their price objective on Controladora Vuela Compania de Aviacion from $8.60 to $7.70 and set a “neutral” rating for the company in a report on Tuesday, August 11th. Finally, UBS Group upped their target price on Controladora Vuela Compania de Aviacion from $9.00 to $11.00 and gave the stock a “buy” rating in a research note on Wednesday, August 5th. Three investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $9.40.

Controladora Vuela Compania de Aviacion Stock Performance

The company has a debt-to-equity ratio of 6.78, a quick ratio of 0.64 and a current ratio of 0.64. The firm’s 50 day moving average is $6.71 and its 200-day moving average is $7.47. The stock has a market capitalization of $668.00 million, a price-to-earnings ratio of -3.49 and a beta of 1.81.

Controladora Vuela Compania de Aviacion (NYSE:VLRS) last announced its quarterly earnings results on Wednesday, July 22nd. The transportation company reported ($1.11) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($1.08) by ($0.03). The firm had revenue of $859.00 million for the quarter, compared to analysts’ expectations of $854.70 million. Controladora Vuela Compania de Aviacion had a negative return on equity of 93.91% and a negative net margin of 5.71%. Analysts forecast that Controladora Vuela Compania de Aviacion, S.A.B. de C.V. will post -2.49 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. GAMMA Investing LLC raised its position in shares of 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 grew its position in shares of Controladora Vuela Compania de Aviacion by 6,204.9% during the 1st 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 during the period. Y Intercept Hong Kong Ltd acquired a new stake in shares of Controladora Vuela Compania de Aviacion during the 1st quarter valued at about $177,000. FNY Investment Advisers LLC acquired a new stake in shares of Controladora Vuela Compania de Aviacion during the 2nd quarter valued at about $187,000. Finally, Allegheny Financial Group acquired a new stake in shares of Controladora Vuela Compania de Aviacion during the 1st quarter valued at about $195,000. Institutional investors and hedge funds own 53.32% of the company’s stock.

About Controladora Vuela Compania de Aviacion

Controladora Vuela Compañía de Aviación, SAB. de C.V. is the holding company for Volaris, an ultra-low-cost airline headquartered in Mexico. The company provides scheduled passenger air transportation, offering primarily point-to-point flights at affordable fares, along with ancillary services such as baggage, seat selection and other travel-related products.

Volaris began operations in 2006 and has developed an extensive domestic network in Mexico, connecting major cities with leisure and business destinations.