Retirement Systems of Alabama Cuts Stake in United Airlines Holdings, Inc.

Retirement Systems of Alabama has reduced its investment in United Airlines Holdings, Inc. (NASDAQ:UAL) by 13.0% during the third quarter, as reported in its latest Form 13F filing with the Securities and Exchange Commission (SEC). Following this adjustment, the firm now possesses 509,150 shares, having sold 75,821 shares over the quarter. The value of Retirement Systems of Alabama's stake in United Airlines amounts to approximately $29,052,000, representing about 0.15% ownership of the airline company's stock.

Several other hedge funds and institutional investors have also recently engaged in buying and selling shares of United Airlines. For instance, Global Trust Asset Management LLC established a new position in the third quarter valued at $29,000. Similarly, Strategic Investment Solutions Inc. IL acquired a new stake worth $30,000 during the second quarter. Armstrong Advisory Group Inc. invested $36,000 in shares of United Airlines in the third quarter. Notably, UMB Bank n.a. increased its stake by 59.7% in the second quarter and now holds 682 shares valued at $33,000 after adding 255 shares during the most recent quarter. Blue Trust Inc. has also augmented its position by 108.6% in the third quarter, bringing its total to 753 shares worth $43,000 after acquiring an additional 392 shares. Approximately 69.69% of United Airlines' stock is now owned by institutional investors.

Overview of United Airlines Stock Performance

As of Friday, the shares of United Airlines (NASDAQ: UAL) were priced at $95.11. Over the past year, the company's stock has reached a low of $37.02 and a high of $105.09. Currently, United Airlines boasts a market capitalization of $31.28 billion, with a price-to-earnings (P/E) ratio of 11.47 and a price/earnings-to-growth (PEG) ratio of 1.17. The airline's beta stands at 1.44, indicating its volatility compared to the market. The company's current ratio is 0.79, while the quick ratio is 0.72, and its debt-to-equity ratio is 1.95. The 50-day moving average for its stock is $84.18, whereas the 200-day moving average is $60.49.

Recent Earnings Reports

United Airlines recently announced its quarterly earnings results on October 15. The airline reported earnings per share (EPS) of $3.33 for the quarter, surpassing analysts' anticipated EPS of $3.10 by $0.23. The revenue for the quarter totaled $14.84 billion, exceeding analyst expectations of $14.76 billion. The company reported a net margin of 4.94% and a return on equity of 30.72%. In the same quarter last year, United Airlines recorded an EPS of $3.65. Analysts currently project that United Airlines Holdings, Inc. will achieve an average EPS of 10.23 for the current fiscal year.

In conjunction with announcing its quarterly results, United Airlines' board stated on October 15 that it has approved a share buyback program, allowing the firm to repurchase up to $1.50 billion worth of its shares. This program would permit the airline to buy back as much as 7.1% of its outstanding stock, reflecting confidence from the board regarding the valuation of the company’s stock.

Analyst Ratings Update

Multiple analysts have recently revised their ratings for United Airlines. For example, TD Cowen raised its price target for United Airlines from $100.00 to $125.00, categorizing the stock as a "buy" in a report released on November 19. Dbs Bank has upgraded United Airlines from "hold" to "strong-buy" in a report on November 26. Sanford C. Bernstein acknowledged a price target increase from $68.00 to $85.00, citing an "outperform" rating on October 17. Additionally, Melius Research has designated the stock as a "strong-buy" as of December 2, while The Goldman Sachs Group reaffirmed a "buy" rating and set a price target of $119.00 on November 15. Currently, one analyst rates the stock as a hold, whereas fifteen analysts recommend it as a buy and two classify it as a strong buy. According to MarketBeat.com, the consensus rating for United Airlines is "Buy," with an average price target of $98.95.

Insider Trading Activity

In related news, United Airlines witnessed some insider selling activity. Executive Vice President Kate Gebo sold 17,500 shares on November 1, receiving approximately $1,407,700 for the transaction, which was completed at an average price of $80.44 per share. Following this sale, Gebo holds 40,012 shares valued at about $3,218,565.28, reflecting a 30.43% decrease in her holdings. Similarly, EVP Torbjorn J. Enqvist sold 14,500 shares on October 17 for a total of $1,044,000 at an average price of $72.00. After this sale, Enqvist retains 30,427 shares worth $2,190,744, indicating a 32.27% decrease in his position. In total, insiders have sold approximately 92,000 shares of United Airlines valued at $8,158,900 over the past three months, and insiders collectively own about 0.63% of the company's stock.

About United Airlines

United Airlines Holdings, Inc. provides extensive air travel services across North America, Asia, Europe, Africa, the Pacific, the Middle East, and Latin America through its subsidiaries. The company operates both mainline and regional fleets for passenger and cargo transport and also offers additional services such as catering, ground handling, flight training, and maintenance for third parties.

Retirement, Investment, Shares