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Double Downgrade Drags Hawaiian Holdings Stock to New Low

Stifel targeted 20% downside for HA shares

Aug 21, 2019 at 10:24 AM
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Stifel slapped Hawaiian Holdings, Inc. (NASDAQ:HA) with a double downgrade to "sell" from "buy," and slashed its price target on the regional airline stock to $20 from $30 -- a 21.3% discount to last night's close at $25.42. In reaction, HA stock is down 5.6% to trade at $23.99, earlier hitting a nearly four-year low of $22.84.

Today's downside is nothing new for the shares. The stock has shed almost 61% since its late-2016 record peak at $60.90. More recently, a mid-July rejection at its 160-day moving average sent HA on its next leg lower, with the shares down 20% in the last five weeks.

Not surprisingly, most analysts are already skeptical of Hawaiian Holdings stock. Prior to today, six of eight brokerages maintained a "hold" or worse rating on the equity. Plus, the average 12-month price target of $26.78 is a healthy 13% premium to current trading levels.

Today's options traders appear to be calling a floor near $22, though. Amid light absolute volume, HA options are crossing the tape at six times what's typically seen at this point. The September 22 put is most active, and it looks like sell-to-open activity could be occurring here.

 

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