Controladora Vuela Cia De Aviacion ADR (VLRS) Stock: A Closer Look at the Market Potential

The price-to-earnings ratio for Controladora Vuela Cia De Aviacion ADR (NYSE: VLRS) is above average at 6.87x, Company’s 36-month beta value is 2.48.Analysts have differing opinions on the stock, with 6 analysts rating it as a “buy,” 0 as “overweight,” 5 as “hold,” and 0 as “sell.”

The public float for VLRS is 94.15M, and currently, short sellers hold a 0.92% ratio of that floaft. The average trading volume of VLRS on June 19, 2024 was 503.74K shares.

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VLRS) stock’s latest price update

Controladora Vuela Cia De Aviacion ADR (NYSE: VLRS)’s stock price has increased by 0.15 compared to its previous closing price of 6.59. However, the company has seen a -5.17% decrease in its stock price over the last five trading sessions. globenewswire.com reported 2024-06-06 that MEXICO CITY, June 06, 2024 (GLOBE NEWSWIRE) — Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (NYSE: VLRS and BMV: VOLAR) (“Volaris” or “the Company”), the ultra-low-cost carrier (ULCC) serving Mexico, the United States, Central, and South America, reports its May 2024 preliminary traffic results.

VLRS’s Market Performance

Controladora Vuela Cia De Aviacion ADR (VLRS) has seen a -5.17% fall in stock performance for the week, with a -24.57% decline in the past month and a -3.37% plunge in the past quarter. The volatility ratio for the week is 3.50%, and the volatility levels for the past 30 days are at 4.46% for VLRS. The simple moving average for the last 20 days is -11.63% for VLRS stock, with a simple moving average of -14.64% for the last 200 days.

Analysts’ Opinion of VLRS

Many brokerage firms have already submitted their reports for VLRS stocks, with Morgan Stanley repeating the rating for VLRS by listing it as a “Overweight.” The predicted price for VLRS in the upcoming period, according to Morgan Stanley is $12 based on the research report published on May 24, 2024 of the current year 2024.

TD Cowen, on the other hand, stated in their research note that they expect to see VLRS reach a price target of $11, previously predicting the price at $16. The rating they have provided for VLRS stocks is “Outperform” according to the report published on February 29th, 2024.

JP Morgan gave a rating of “Overweight” to VLRS, setting the target price at $23 in the report published on June 06th of the previous year.

VLRS Trading at -16.27% from the 50-Day Moving Average

After a stumble in the market that brought VLRS to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -54.86% of loss for the given period.

Volatility was left at 4.46%, however, over the last 30 days, the volatility rate increased by 3.50%, as shares sank -22.26% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -15.38% lower at present.

During the last 5 trading sessions, VLRS fell by -5.17%, which changed the moving average for the period of 200-days by -34.00% in comparison to the 20-day moving average, which settled at $7.37. In addition, Controladora Vuela Cia De Aviacion ADR saw -29.64% in overturn over a single year, with a tendency to cut further losses.

Stock Fundamentals for VLRS

Current profitability levels for the company are sitting at:

  • 0.09 for the present operating margin
  • 0.18 for the gross margin

The net margin for Controladora Vuela Cia De Aviacion ADR stands at 0.03. The total capital return value is set at 0.09. Equity return is now at value 50.81, with 2.23 for asset returns.

Based on Controladora Vuela Cia De Aviacion ADR (VLRS), the company’s capital structure generated 0.79 points at debt to capital in total, while cash flow to debt ratio is standing at 0.74. The debt to equity ratio resting at 3.67. The interest coverage ratio of the stock is 1.4.

Currently, EBITDA for the company is 261.0 million with net debt to EBITDA at 4.89. When we switch over and look at the enterprise to sales, we see a ratio of 1.11. The receivables turnover for the company is 11.17for trailing twelve months and the total asset turnover is 0.61. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.73.

Conclusion

In a nutshell, Controladora Vuela Cia De Aviacion ADR (VLRS) has experienced a bad performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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