Carl Icahn disclosed a 9.91% stake in JetBlue Airlines
Discount airline JetBlue Airways Corporation (NASDAQ:JBLU) is 17% higher premarket, after activist investor Carl Icahn disclosed a 9.91% stake in the company. Icahn called JetBlue Airways an undervalued and "attractive" stock to invest in, also disclosing discussions with the company's leadership about representation on the board.
Should this positive premarket action keep up, JetBlue Airways stock will open at its highest level since a late-August bear gap of 8.1%. The shares would also be clearing their 200-day moving average, a trendline that's looming above the 9.3% year-to-date rally in 2024. JetBlue stock is down 27% over the last 12 months, resulting in an intriguing entry point for those looking to follow suit.
Coming into today, analysts were quite pessimistic on the stock, with all but one of the 10 in coverage calling it a "hold" or worse. Further, the 35.27 million shares sold short account for 10.6% of JBLU's total available float.
For those looking to speculate on the security's next move, options may be the way to go. According to JetBlue Airways stock's Schaeffer's Volatility Scorecard (SVS) rating of 83 out of 100, the equity tended to outperform options traders' volatility expectations over the last 12 months.