JetBlue Airways Corporation (JBLU) Shares: Cheap or Risky?


JetBlue Airways Corporation (NASDAQ:JBLU) saw an upside of 0.82% to close Monday at $8.65 after adding $0.07 on the day. The 5-day average trading volume is 9,490,160 shares of the company’s common stock. It has gained $8.82 in the past week and touched a new high 3 times within the past 5 days. An average of 8,773,160 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 9,232,939.

JBLU’s 1-month performance is 32.26% or $2.20 on its low of $6.18 reached on 12/28/22. The company’s shares have touched a 52-week low of $6.18 and high of $16.39, with the stock’s rally to the 52-week high happening on 01/20/23. YTD, JBLU has achieved 33.49% or $2.17 and has reached a new high 12 times. However, the current price is down -47.22% from the 52-week high price.

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Insider Transactions

JBLU stock investors last saw insider trading activity on May 02.Hayes Robin (CEO) most recently sold 1,000 shares at $10.97 per share on May 02. This transaction cost the insider $10,970. CEO, Hayes Robin, sold 1,000 shares at a price of $12.61 on Apr 18. Then, on Apr 01, CEO Hayes Robin sold 1,000 shares at a price of $15.02 per share. This transaction amounted to $15,020.

Valuation Metrics

JBLU stock has a beta of 1.58. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 0.32 while the price-to-book (PB) in the most recent quarter is 0.80, with the price to cash flow ratio at 75.01.

JetBlue Airways Corporation’s quick ratio for the period ended September 29 was 0.60, with the current ratio over the same period at 0.70. As well, the company’s long term debt to equity for the quarter ending September 29 was 0.92, while the total debt to equity was 1.07. In terms of profitability, the gross margin trailing 12 months is 59.80%. The firm’s gross profit as reported stood at $3.25 billion against revenue of $6.04 billion.

Earnings Surprise

For the quarterly period ending September 29 this year, JetBlue Airways Corporation’s cash and short-term investments amounted to $692.0 million against total debt of $4.63 billion. Net income and sales went up compared to those figures reported in the previous quarter. Net income shrunk -128.07% to $57.0 million, while revenue of -$188.0 million was 429.82% off the previous quarter. Analysts expected JBLU to announce $0.23 per share in earnings in its latest quarter, but it posted $0.21, representing a -8.70% surprise. EBITDA for the quarter stood at more than $286.0 million. JBLU stock balance sheet for the quarter ending September 29 shows that total liabilities totaled 9.82 billion, with total debt at $4.63 billion. Shareholders hold equity totaling $323.88 million.

Let’s look briefly at JetBlue Airways Corporation (JBLU) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 23 January was 85.85% to suggest the stock is trending Overbought, with historical volatility in this time period at 18.20%.

The stock’s 5-day moving average is $8.52, reflecting a +4.98% or $0.41 change from its current price. JBLU is currently trading +31.26% above its 20-day SMA, +8.81% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +12.34% and SMA200 by-36.58%.

Stochastic %K and %D was 92.12% and 92.61% and the average true range (ATR) pointed at 0.31. The RSI (14) points at 75.88%, while the 14-day stochastic is at 92.98% with the period’s ATR at 0.31. The stock’s 9-day MACD Oscillator is pointing at 0.31 and 0.74 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for JetBlue Airways Corporation (NASDAQ: JBLU), Cowen downgraded it to a Market perform rating. They previously had an Outperform rating on the stock. Analysts offering their rating for JBLU stock have a consensus rating for the stock as Hold. Currently, 2 brokerage advisors rate JBLU as a “sell,”, while 11 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 0 rates the stock as overweight while 1 have offered a “buy” rating.

What is JBLU’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $6.00 and a high of $10.00, with their median price target at $9.00. Looking at these predictions, the average price target given by analysts is for JetBlue Airways Corporation (JBLU) stock is $8.68.


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