Analyst Update: Virgin America, YRC Worldwide, Expedia

Analysts adjusted their ratings on Virgin America Inc (VA), YRC Worldwide Inc (YRCW), and Expedia Inc (EXPE)

Oct 30, 2015 at 2:29 PM
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Analysts are weighing in today on airliner Virgin America Inc (NASDAQ:VA), transportation issue YRC Worldwide Inc (NASDAQ:YRCW), and online travel firm Expedia Inc (NASDAQ:EXPE). Here's a quick roundup of today's brokerage notes on VA, YRCW, and EXPE.

  • VA on Thursday reported solid third-quarter earnings, but warned of a unit revenue decline in the fourth quarter. Still, the shares edged slightly higher on the day, and today have added 2% to sit at $36.14, with help from a price-target hike to $32 from $30 at Sterne Agee CRT. The equity is now on pace to end at its highest close of the month, and an unwinding of short positions could drive the stock even higher. After increasing by 13.3% during the past two reporting periods, short interest on Virgin America Inc represents 21.2% of the security's total available float -- nearly eight sessions' worth of pent-up buying demand, at VA's average pace of trading.
  • YRCW is enjoying a 29.5% lead to sit at $17.94 -- its loftiest perch since Aug. 21 -- thanks to a well-received earnings report (subscription required). As a result, Stifel upgraded YRC Worldwide Inc shares to "buy" from "hold." Most analysts are already in the bulls' corner, as the shares boast three "strong buys" and one "hold" rating, with not a single "sell" in sight. Meanwhile, option traders have struck a more bullish tone than usual during the past couple of weeks. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day call/put volume ratio of 23.17 stands higher than 63% of all other readings from the past year.
  • EXPE reached a new all-time high today at $139.58, and was recently seen trading up 8.6% at $138.03, after announcing an earnings beat. The Internet travel giant also revealed that its recent takeover of competing interest Orbitz Worldwide Inc is expected to boost its bottom line more than previously anticipated. Expedia Inc could gain more ground if bears abandon ship, as more than 10% of its float is sold short, representing over six days of trading at typical volumes. In the options pits, EXPE sports a 50-day put/call volume ratio on the ISE/CBOE/PHLX of 1.19, higher than 71% of readings in the past year. This indicates plenty of buying power still on the sidelines to boost the stock even higher.
For other stocks in analysts' crosshairs, read Analyst Upgrades: LinkedIn Corp, Baidu Inc, and Starbucks Corporation and Analyst Downgrades: Tesla Motors Inc, SolarCity Corp, and Facebook Inc.
 

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