The stock price of LATAM Airlines Group S.A. ADR (NYSE: LTM) has surged by 1.72 when compared to previous closing price of 31.44, but the company has seen a 4.85% gain in its stock price over the last five trading sessions. seekingalpha.com reported 2025-05-02 that LATAM Airlines is on a solid path toward moderate growth and profitability, but its stock is currently fairly valued by the market. Q1’25 earnings confirm LATAM’s hub strategy and growth opportunities, with new routes and expanded services in Peru, North America, and Europe. LATAM delivered strong Q1 earnings with revenue growth, lower expenses, and improved EBITDAR margin, supporting its FY’25 guidance.
Is It Worth Investing in LATAM Airlines Group S.A. ADR (NYSE: LTM) Right Now?
LATAM Airlines Group S.A. ADR (NYSE: LTM) has a price-to-earnings ratio that is above its average at 8.98x. The stock has a 36-month beta value of 3.55. Opinions on the stock are mixed, with 2 analysts rating it as a “buy,” 3 as “overweight,” 1 as “hold,” and 0 as “sell.”
The public float for LTM is 260.42M, and at present, short sellers hold a 0.27% of that float. On May 02, 2025, the average trading volume of LTM was 414.37K shares.
LTM’s Market Performance
LTM stock saw an increase of 4.85% in the past week, with a monthly gain of 2.50% and a quarterly increase of 5.06%. The volatility ratio for the week is 1.87%, and the volatility levels for the last 30 days are 3.88% for LATAM Airlines Group S.A. ADR (LTM). The simple moving average for the last 20 days is 6.91% for LTM stock, with a simple moving average of -32.79% for the last 200 days.
Analysts’ Opinion of LTM
Many brokerage firms have already submitted their reports for LTM stocks, with Morgan Stanley repeating the rating for LTM by listing it as a “Overweight.” The predicted price for LTM in the upcoming period, according to Morgan Stanley is $40 based on the research report published on October 01, 2024 of the previous year 2024.
LTM Trading at 2.80% from the 50-Day Moving Average
After a stumble in the market that brought LTM to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -97.26% of loss for the given period.
Volatility was left at 3.88%, however, over the last 30 days, the volatility rate increased by 1.87%, as shares surge +3.50% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -2.29% lower at present.
During the last 5 trading sessions, LTM rose by +4.85%, in comparison to the 20-day moving average, which settled at $29.91. In addition, LATAM Airlines Group S.A. ADR saw 15.95% in overturn over a single year, with a tendency to cut further gains.
Stock Fundamentals for LTM
Current profitability levels for the company are sitting at:
- 0.13 for the present operating margin
- 0.26 for the gross margin
The net margin for LATAM Airlines Group S.A. ADR stands at 0.08. The total capital return value is set at 0.19. Equity return is now at value 138.69, with 6.98 for asset returns.
Based on LATAM Airlines Group S.A. ADR (LTM), the company’s capital structure generated 0.88 points at debt to capital in total, while cash flow to debt ratio is standing at 0.37. The debt to equity ratio resting at 7.46. The interest coverage ratio of the stock is 2.18.
Currently, EBITDA for the company is 2.34 billion with net debt to EBITDA at 2.52. When we switch over and look at the enterprise to sales, we see a ratio of 1.13. The receivables turnover for the company is 8.81for trailing twelve months and the total asset turnover is 0.81. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.61.
Conclusion
To sum up, LATAM Airlines Group S.A. ADR (LTM) has seen a better performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others as a “hold”. 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.
