Weak Guidance Grounds Spirit Airlines Stock

Spirit's second-quarter revenue outlook fell short of expectations

Managing Editor
Jul 12, 2019 at 9:52 AM
facebook X logo linkedin


A day after Delta Air Lines (DAL) soared in the wake of its quarterly report, the shares of sector peer Spirit Airlines Incorporated (NYSE:SAVE) are down 0.4% to trade at $52.04 this morning. Spirit's second-quarter revenue growth outlook of nearly 19% came in lower than expected. Despite the subpar number, Citi upped its price target on SAVE today to $69 from $68. 

Since bottoming at the $46 area twice in the last two months, the shares have gone on to see bounces cut off at the $53 level, an area that served as support earlier in 2019. This recent rally, which has SAVE up 9% this quarter, also has found resistance at its descending 100-day moving average. Longer term, Spirit stock has found itself in a channel of lower highs and lows since its Dec. 4 three-year high of $65.34. 

The analyst community remains steadfast in their commitment to the equity. Of the 12 in coverage, nine rate it a "strong buy," with zero "sells" on the books. Plus, the consensus 12-month price target of $67.56 sits up in territory not traded at since June 2015.

In the options pits though, bears have been piling on their pessimistic positions. SAVE's 10-day put/call volume ratio of 1.30 on the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits in the 91st percentile of its annual range. This suggests that traders picked up puts over calls at a quicker clip than usual during the past 10 days. 

Now is the time to pursue options on Spirit stock. Its Schaeffer's Volatility Index (SVI) of 31% ranks in the 10th annual percentile, indicating short-term options are pricing in relatively low volatility expectations at the moment.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI