Many stocks have been testing new highs in 2020, and one of the most notable is Spirit Airlines Inc. (SAVE). Currently, SAVE is trading at $25.56 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $13.33.
To add more color to this target, the company’s high over the last year is $55.21 and the low is $7.01. Over the last 52 weeks, SAVE is down -53.70% while the S&P 500 is up 1.21%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, SAVE reported a profit of $557.87 million. Spirit Airlines Inc. also saw revenues increase to $771.08 million. In addition, SAVE has free cash flow of -$285.89 million as of 03-2020 The company’s EBITDA came in at $10.11 million which compares well with its peers.
SAVE booked profit margins of 6.70%, its Return on Equity (ROE) is 11.50%, and its Return on Assets is 3.70%. All told, it is clear that, SAVE needs to be on your watchlist.
About Spirit Airlines Inc.
If readers are unfamiliar, Spirit Airlines, Inc. provides low-fare airline services. The company operates approximately 600 daily flights to 77 destinations in the United States, the Caribbean, and Latin America. As of December 31, 2019, the company had a fleet of 145 Airbus single-aisle aircraft comprising 31 A319ceos, 64 A320ceos, 20 A320neos and 30 A321ceos. It offers tickets through its call centers and airport ticket counters, as well as online through spirit.com; and through various third parties, including online, traditional travel agents, and electronic global distribution systems. The company was formerly known as Clippert Trucking Company and changed its name to Spirit Airlines, Inc. in 1992. Spirit Airlines, Inc. was founded in 1964 and is headquartered in Miramar, Florida.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. SAVE has a short ratio of 1.16 and outstanding shares of 68.52M.
SAVE has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 59.77 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 3.67. Spirit Airlines Inc. SAVE also noted assets of $7.24 billion at the end of the last quarter. Investors should also keep an eye on sector updates as SAVE has historically followed its peers on positive news.
All told, Spirit Airlines Inc. SAVE has strung together solid data and demonstrated underlying fundamentals. At its current valuation, SAVE represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Spirit Airlines Inc. SAVE is now commanding a market cap of 2.11B and a float of 82.39M. SAVE is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of SAVE stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in SAVE, either long or short, and we have not been compensated for this article.