Last Updated: 18 Sep 2024
Executive Summary
Spirit Airlines Inc. (SAVE) is a low-cost carrier based in Miramar, Florida. Despite recent financial challenges, the company has a strong market position and potential for growth. However, its negative earnings and low analyst ratings indicate short-term risks.
Company Overview
Spirit Airlines provides scheduled air transportation services in the United States, Latin America, and the Caribbean. The company operates a fleet of Airbus A319, A320, and A321 aircraft. Spirit Airlines has a market capitalization of $2.74 billion and is listed on the New York Stock Exchange (NYSE).
Fundamental Analysis
Revenue: Spirit Airlines reported revenue of $5.13 billion in the trailing twelve months (TTM), a 10.6% increase year-over-year.
Earnings: The company has been reporting negative earnings for several quarters, with a TTM diluted EPS of -$6.2.
Profitability: Spirit Airlines has a negative profit margin of -13.2% and an operating margin of -13%.
Valuation: The stock is currently trading at a price-to-sales ratio of 0.0534 and a price-to-book ratio of 0.338.
Technical Analysis
Technical Indicators: The stock price is below its 50-day and 200-day moving averages, indicating a bearish trend.
Support and Resistance Levels: The stock has strong support at $2.38 (52-week low) and resistance at $16.78 (52-week high).
Short Term Outlook
In the short term, Spirit Airlines faces challenges due to its negative earnings and low analyst ratings. The stock price is likely to remain volatile and may test its support levels.
Long Term Outlook
Despite its current financial difficulties, Spirit Airlines has a strong market position and potential for growth. The company's low-cost model and focus on leisure travel could benefit from the recovery in the travel industry.
Analyst Recommendations
Analysts have mixed views on Spirit Airlines. As of the latest data, 0 analysts recommend a "Strong Buy," 0 recommend a "Buy," 4 recommend a "Hold," 8 recommend a "Sell," and 1 recommends a "Strong Sell." The average analyst target price is $2.43.
Conclusion
Spirit Airlines is a high-risk, high-reward investment. The company's negative earnings and low analyst ratings pose short-term challenges. However, its strong market position and potential for growth in the long term make it an attractive option for investors with a high tolerance for risk.
