Azul S.A. [NYSE: AZUL] loss -3.85% or -1.02 points to close at $25.44 with a heavy trading volume of 2266402 shares. The company report on May 25, 2021 that Azul Statement on the LATAM Codeshare and Potential Industry Consolidation.
Azul, the largest airline in Brazil in terms of destinations and departures updates the market on its codeshare with LATAM and possible industry consolidation. Azul believes that consolidation is an important part of the post-pandemic industry response and the Company is in a strong position to drive that consolidation. The Company has hired advisors and is actively exploring industry consolidation opportunities in the region.
“The codeshare with LATAM was a unique solution in our pandemic response. We also realized that industry consolidation would be important for the post-pandemic recovery and Azul would be a key part of any such activity. In the first quarter of 2021 we hired financial advisors and are actively exploring consolidation opportunities. We believe the cancelation of the codeshare by LATAM is a reaction to that process,” says John Rodgerson, CEO of Azul. “Azul is emerging from this crisis in a leadership position in terms of liquidity, network recovery and competitive advantages. Our plans are unchanged and I am confident that we are in the best position to pursue strategic alternatives at this point in time,” says Rodgerson.
It opened the trading session at $26.32, the shares rose to $26.39 and dropped to $25.38, the range by which the price of stock traded the whole day. The daily chart for AZUL points out that the company has recorded 26.00% gains over the past six months. However, it is still -229.53% lower than its most recent low trading price.
If we look at the average trading volume of 1.22M shares, AZUL reached to a volume of 2266402 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 Azul S.A. [AZUL]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for AZUL shares is $20.99 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on AZUL stock is a recommendation set at 2.60. 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.
Seaport Global Securities have made an estimate for Azul S.A. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on May 07, 2021. The new note on the price target was released on April 12, 2021, representing the official price target for Azul S.A. stock.
The Average True Range (ATR) for Azul S.A. is set at 1.02, with the Price to Sales ratio for AZUL stock in the period of the last 12 months amounting to 2.59. Price to Free Cash Flow for AZUL in the course of the last twelve months was 23.51 with Quick ratio for the last quarter at 0.50.
Trading performance analysis for AZUL stock
Azul S.A. [AZUL] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 11.14. With this latest performance, AZUL shares gained by 13.27% in over the last four-week period, additionally plugging by 26.00% over the last 6 months – not to mention a rise of 211.76% 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 AZUL stock in for the last two-week period is set at 66.21, with the RSI for the last a single of trading hit 69.19, and the three-weeks RSI is set at 63.06 for Azul S.A. [AZUL]. The present Moving Average for the last 50 days of trading for this stock 21.55, while it was recorded at 24.25 for the last single week of trading, and 19.13 for the last 200 days.
Azul S.A. [AZUL]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Azul S.A. [AZUL] shares currently have an operating margin of -37.38 and a Gross Margin at -17.67. Azul S.A.’s Net Margin is presently recorded at -188.62.
Return on Total Capital for AZUL is now -24.07, given the latest momentum, and Return on Invested Capital for the company is -171.42. Additionally, AZUL Total Debt to Total Capital is recorded at 346.81, with Total Debt to Total Assets ending up at 125.88.
Receivables Turnover for the company is 4.57 with a Total Asset Turnover recorded at a value of 0.33.Azul S.A.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.50 and a Current Ratio set at 0.50.
Azul S.A. [AZUL]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, Azul S.A. posted -0.44/share EPS, while the average EPS was predicted by analysts to be reported at -1.2/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 63.30%. 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 AZUL.
An analysis of insider ownership at Azul S.A. [AZUL]
Positions in Azul S.A. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 38 institutional holders increased their position in Azul S.A. [NYSE:AZUL] by around 8,822,253 shares. Additionally, 69 investors decreased positions by around 7,902,490 shares, while 11 investors held positions by with 24,387,089 shares. The mentioned changes placed institutional holdings at 41,111,832 shares, according to the latest SEC report filing. AZUL stock had 14 new institutional investments in for a total of 2,502,683 shares, while 33 institutional investors sold positions of 3,648,666 shares during the same period.