Spirit Airlines Stock Pops on Fresh Analyst Upgrade

Year-to-date, SAVE is down more than 33%

Digital Content Manager
Jun 10, 2022 at 10:50 AM
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Spirit Airlines Incorporated (NYSE:SAVE) just scored an upgrade from J.P. Morgan Securities to "overweight" from "neutral," and s a price-target hike to $30 from $24. The analyst in question noted a merger deal with JetBlue Airways (JBLU) is becoming more likely than one with Frontier (ULCC), after the former upped its offer. At last check, the equity is up 2% to trade at $22.75.

Analysts were split towards Spirit Airlines stock coming into today, with five calling it a "hold," while five said "strong buy." This leaves plenty of room for additional upgrades moving forward. Meanwhile, short interest added 14.4% in two most recent reporting periods, with the 9.50 million shares sold short now accounting for 8.8% of SAVE's available float.

On the charts, the security has bounced off a May 12, more than one-year low of $15.94, but this rally lost steam at the $23 level. Shares have broken through pressure from the 60-day moving average this week, and are today eyeing a fifth-straight close above this trendline. Year-to-date, though, SAVE is down 33.3%.

Options bulls are also chiming in, with 2,757 calls across the tape so far, which is double the intraday average, compared to just 367 puts. Most popular is the July 25 call, followed by the weekly 6/10 22.50-strike. New positions are  being opened at the latter, which will expire at today's close.

 

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