Spirit Airlines Inc. [NYSE: SAVE] slipped around -2.1 points on Wednesday, while shares priced at $35.05 at the close of the session, down -5.65%. The company report on April 29, 2021 that Spirit Airlines Announces Pricing of Offering of 1.00% Convertible Senior Notes Due 2026.
Spirit Airlines, Inc. (NYSE: SAVE) (“Spirit”) announced it has priced its underwritten public offering of $440,000,000 aggregate principal amount of 1.00% convertible senior notes due 2026 (the “Convertible Notes” and such offering, the “Convertible Notes Offering”). The net proceeds to Spirit from the Convertible Notes Offering, after deducting underwriting discounts and other offering expenses, are expected to be approximately $428.3 million.
Spirit has granted the underwriters of the Convertible Notes Offering a 30-day option to purchase up to $60,000,000 aggregate principal amount of additional Convertible Notes, solely to cover over-allotments, in the Convertible Notes Offering. The Convertible Notes will be convertible by holders if certain conditions are met, and during certain periods, based on an initial conversion rate of 20.3791 shares of common stock per $1,000 principal amount of the Convertible Notes, which is equivalent to a conversion price of approximately $49.07 per share, representing a premium of approximately 40.0% over the last reported sale price of $35.05 per share of Spirit’s common stock on April 28, 2021. Spirit will settle conversions of the Convertible Notes in cash or a combination of cash and shares of common stock, at Spirit’s election.
Spirit Airlines Inc. stock is now 43.35% up from its year-to-date (YTD) trading value. SAVE Stock saw the intraday high of $36.10 and lowest of $34.99 per share. The company’s 52-week high price is 40.77, which means current price is +53.26% above from all time high which was touched on 03/18/21.
Compared to the average trading volume of 4.83M shares, SAVE reached a trading volume of 12281995 in the most recent trading day, which is why market watchdogs consider the stock to be active.
What do top market gurus say about Spirit Airlines Inc. [SAVE]?
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SAVE shares is $39.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SAVE stock is a recommendation set at 2.70. 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.
Evercore ISI have made an estimate for Spirit Airlines Inc. shares, keeping their opinion on the stock as In-line, with their previous recommendation back on April 28, 2021. While these analysts kept the previous recommendation, JP Morgan raised their target price from $31 to $54. The new note on the price target was released on April 14, 2021, representing the official price target for Spirit Airlines Inc. stock. Previously, the target price had yet another raise to $50, while Susquehanna analysts kept a Positive rating on SAVE stock.
The Average True Range (ATR) for Spirit Airlines Inc. is set at 1.82, with the Price to Sales ratio for SAVE stock in the period of the last 12 months amounting to 2.17. The Price to Book ratio for the last quarter was 1.64, with the Price to Cash per share for the same quarter was set at 20.22.
How has SAVE stock performed recently?
Spirit Airlines Inc. [SAVE] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -2.69. With this latest performance, SAVE shares dropped by -3.89% in over the last four-week period, additionally plugging by 104.61% over the last 6 months – not to mention a rise of 144.42% 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 SAVE stock in for the last two-week period is set at 43.93, with the RSI for the last a single of trading hit 39.92, and the three-weeks RSI is set at 47.19 for Spirit Airlines Inc. [SAVE]. The present Moving Average for the last 50 days of trading for this stock 36.73, while it was recorded at 36.51 for the last single week of trading, and 24.74 for the last 200 days.
Spirit Airlines Inc. [SAVE]: Deeper insight into the fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Spirit Airlines Inc. [SAVE] shares currently have an operating margin of -44.65 and a Gross Margin at -39.96. Spirit Airlines Inc.’s Net Margin is presently recorded at -23.68.
Return on Total Capital for SAVE is now -12.53, given the latest momentum, and Return on Invested Capital for the company is -7.14. Return on Equity for this stock declined to -19.01, with Return on Assets sitting at -5.23. When it comes to the capital structure of this company, Spirit Airlines Inc. [SAVE] has a Total Debt to Total Equity ratio set at 214.84. Additionally, SAVE Total Debt to Total Capital is recorded at 68.24, with Total Debt to Total Assets ending up at 53.83. Long-Term Debt to Equity for the company is recorded at 191.81, with the Long-Term Debt to Total Capital now at 60.92.
Reflecting on the efficiency of the workforce at the company, Spirit Airlines Inc. [SAVE] managed to generate an average of -$49,321 per employee. Receivables Turnover for the company is 12.69 with a Total Asset Turnover recorded at a value of 0.22.Spirit Airlines Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.50 and a Current Ratio set at 1.50.
Earnings analysis for Spirit Airlines Inc. [SAVE]
With the latest financial reports released by the company, Spirit Airlines Inc. posted -3.59/share EPS, while the average EPS was predicted by analysts to be reported at -2.66/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -35.00%. 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 SAVE.
Insider trade positions for Spirit Airlines Inc. [SAVE]
There are presently around $2,115 million, or 63.50% of SAVE stock, in the hands of institutional investors. The top three institutional holders of SAVE stocks are: VANGUARD GROUP INC with ownership of 8,360,066, which is approximately 9.294% of the company’s market cap and around 0.70% of the total institutional ownership; BLACKROCK INC., holding 7,348,387 shares of the stock with an approximate value of $257.56 million in SAVE stocks shares; and U S GLOBAL INVESTORS INC, currently with $152.14 million in SAVE stock with ownership of nearly -5.667% of the company’s market capitalization.
Positions in Spirit Airlines Inc. stocks held by institutional investors increased at the end of April and at the time of the April reporting period, where 126 institutional holders increased their position in Spirit Airlines Inc. [NYSE:SAVE] by around 11,749,666 shares. Additionally, 93 investors decreased positions by around 7,281,123 shares, while 50 investors held positions by with 41,304,559 shares. The mentioned changes placed institutional holdings at 60,335,348 shares, according to the latest SEC report filing. SAVE stock had 64 new institutional investments in for a total of 4,842,466 shares, while 35 institutional investors sold positions of 1,928,597 shares during the same period.