Mesa Air Group Inc. [NASDAQ: MESA] gained 12.23% or 0.67 points to close at $6.15 with a heavy trading volume of 1956551 shares. The company report on November 25, 2020 that Mesa Air Group Enters New Contract with American Airlines to Operate 40 CRJ-900s for Five Years; Replaces Existing Expiring Contract.
Mesa Air Group, Inc. (NASDAQ: MESA) announced that it has finalized a new contract, which replaces the previous agreement with American Airlines, to operate 40 CRJ-900s for a five-year term beginning January 1, 2021 through December 31, 2025. Under the previous contract 30 CRJ-900 aircraft were set to expire in 2021 with an additional 17 expiring in 2022.
“I want to express my appreciation to the American Eagle team leaders who worked with us on this new contract,” said Jonathan Ornstein, Chairman and Chief Executive Officer of Mesa Air Group. “This new contract will position Mesa for long term stability and improved performance on our American operation. This year has been difficult for our entire industry, but I’m thankful that despite the obstacles, American has chosen to continue its long-standing relationship with Mesa.”.
It opened the trading session at $5.84, the shares rose to $6.27 and dropped to $5.80, the range by which the price of stock traded the whole day. The daily chart for MESA points out that the company has recorded 80.35% gains over the past six months. However, it is still -200.0% lower than its most recent low trading price.
If we look at the average trading volume of 638.95K shares, MESA reached to a volume of 1956551 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Mesa Air Group Inc. [MESA]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for MESA shares is $4.40 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on MESA stock is a recommendation set at 2.80. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Deutsche Bank have made an estimate for Mesa Air Group Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on August 11, 2020. The new note on the price target was released on May 11, 2020, representing the official price target for Mesa Air Group Inc. stock. Previously, the target price had yet another drop from $12 to $5, while Stifel kept a Hold rating on MESA stock.
The Average True Range (ATR) for Mesa Air Group Inc. is set at 0.36, with the Price to Sales ratio for MESA stock in the period of the last 12 months amounting to 0.35. The Price to Book ratio for the last quarter was 0.49. Price to Free Cash Flow for MESA in the course of the last twelve months was 2.04 with Quick ratio for the last quarter at 0.30.
Trading performance analysis for MESA stock
Mesa Air Group Inc. [MESA] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 22.27. With this latest performance, MESA shares gained by 76.72% in over the last four-week period, additionally plugging by 80.35% over the last 6 months – not to mention a drop of -13.44% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for MESA stock in for the last two-week period is set at 82.65, with the RSI for the last a single of trading hit 87.12, and the three-weeks RSI is set at 78.12 for Mesa Air Group Inc. [MESA]. The present Moving Average for the last 50 days of trading for this stock 3.63, while it was recorded at 5.31 for the last single week of trading, and 3.83 for the last 200 days.
Mesa Air Group Inc. [MESA]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Mesa Air Group Inc. [MESA] shares currently have an operating margin of +18.07 and a Gross Margin at +25.05. Mesa Air Group Inc.’s Net Margin is presently recorded at +6.58.
Return on Total Capital for MESA is now 10.21, given the latest momentum, and Return on Invested Capital for the company is 4.25. Return on Equity for this stock inclined to 11.89, with Return on Assets sitting at 3.02. When it comes to the capital structure of this company, Mesa Air Group Inc. [MESA] has a Total Debt to Total Equity ratio set at 198.02. Additionally, MESA Total Debt to Total Capital is recorded at 66.45, with Total Debt to Total Assets ending up at 53.74. Long-Term Debt to Equity for the company is recorded at 159.07, with the Long-Term Debt to Total Capital now at 53.37.
Reflecting on the efficiency of the workforce at the company, Mesa Air Group Inc. [MESA] managed to generate an average of $13,305 per employee. Receivables Turnover for the company is 38.71 with a Total Asset Turnover recorded at a value of 0.46.Mesa Air Group Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.30 and a Current Ratio set at 0.40.
Mesa Air Group Inc. [MESA]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, Mesa Air Group Inc. posted 0.36/share EPS, while the average EPS was predicted by analysts to be reported at 0.36/share. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for MESA.
An analysis of insider ownership at Mesa Air Group Inc. [MESA]
There are presently around $138 million, or 75.90% of MESA stock, in the hands of institutional investors. The top three institutional holders of MESA stocks are: MSD PARTNERS, L.P. with ownership of 2,255,918, which is approximately 0% of the company’s market cap and around 3.70% of the total institutional ownership; UBS GROUP AG, holding 2,210,791 shares of the stock with an approximate value of $13.6 million in MESA stocks shares; and BLACKROCK INC., currently with $13.0 million in MESA stock with ownership of nearly -5.092% of the company’s market capitalization.
Positions in Mesa Air Group Inc. stocks held by institutional investors increased at the end of December and at the time of the December reporting period, where 42 institutional holders increased their position in Mesa Air Group Inc. [NASDAQ:MESA] by around 2,844,361 shares. Additionally, 40 investors decreased positions by around 1,861,944 shares, while 14 investors held positions by with 17,696,911 shares. The mentioned changes placed institutional holdings at 22,403,216 shares, according to the latest SEC report filing. MESA stock had 15 new institutional investments in for a total of 1,101,597 shares, while 13 institutional investors sold positions of 244,627 shares during the same period.