Spirit Airlines: A Closer Look at the Stock’s Performance
There is no question that Spirit Airlines (NYSE:SAVE) is one of the major players in the US airline industry. It boasts an extensive network of domestic and international routes, serving millions of passengers every year. But how has its stock been performing lately? Let’s take a closer look.
As of Friday, June 4th, SAVE opened at $14.55. This was below its 50- and 200-day moving averages of $16.76 and $17.75, respectively. The debt-to-equity ratio stands at 2.15, while the current and quick ratios are both at 1.09.
The company’s shares have experienced significant volatility over the past year, with a low of $14.41 and a high of $25.67. Several research analysts have also recently weighed in on SAVE, with two assigning a sell rating, eight rating it hold, and one stating it’s a buy.
Institutional investors and hedge funds have bought and sold shares in SAVE recently as well. Marshall Wace LLP grew its position by 27%, while Gabelli & Co Investment Advisers increased their stake by more than 125%.
SAVE last reported earnings on April 27th, where they beat the consensus estimate by seven cents per share but still had negative earnings per share for the quarter.
Despite this apparent turbulence surrounding Spirit Airlines’ stock performance lately, Bloomberg reports there is a “Hold” rating among analysts as well as the average price target valued at around $24 per share.
As things continue to change globally within industries due to pandemics or mergers/acquisitions – all key factors must be considered when placing your bets on a stock such as Spirit Airlines (NYSE:SAVE) – for better or worse!
Spirit Airlines Faces Tough Road Ahead as Q3 2023 Earnings Per Share Estimates Reduced
Spirit Airlines, Inc. (NYSE:SAVE) is facing a tough road ahead as research analysts at Zacks Research recently reduced their Q3 2023 earnings per share estimates for the company. These reductions were made in a report that was released on May 23rd, and it has already affected forecasts for the airline’s profitability in the coming years.
According to Zacks Research analyst M. Basu, Spirit Airlines may only post earnings per share of $0.44 for the quarter, down from their previously forecasted $0.45. This decrease demonstrates a slowing of the company’s growth and could be an indication of larger issues within the organization.
These concerns are reinforced by Spirit Airlines’ current full-year earnings estimate which currently stands at only $0.41 per share – an unimpressive figure compared to its competitors in the airline industry.
Zacks Research also issued predictions for Spirit Airlines’ future earnings, with FY2023 earnings estimated at $0.57 EPS, Q2 2024 earnings predicted at $0.22 EPS, and FY2025 earnings forecasted to reach $2.89 EPS. While these figures seem positive on paper, if they fail to come into fruition as predicted it could spell disaster for the struggling airline.
Furthermore, Spirit Airlines announced a dividend payment that will be paid on May 31st of this year. Investors of record on May 24th will receive a dividend of $0.10 per share; however, this represents a meager dividend yield of only 3.16%, which is significantly lower than some of its major competitors.
There are many factors that can influence an airline’s performance including fuel prices, competition, economic instability and more – but when looked at in totality these ominous occurrences paint a bleak picture for Spirit Airlines future success.
Despite all this negativity surrounding its bottom line performance though, it’s important to note that Spirit Airlines still has time to make significant changes that will put the company back on a profitable path. As always, vigilance and swift action in the face of adversity are essential for overcoming these business challenges.
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