Is Buying Stock Like United Continental Holdings Inc Good Idea After Today’s Bullish Options Activity?

 Is Buying Stock Like United Continental Holdings Inc Good Idea After Today's Bullish Options Activity?

In today’s session United Continental Holdings Inc (UAL) registered an unusually high (957) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the October, 2016 call, expecting serious UAL increase. With 957 contracts traded and 56104 open interest for the Oct, 16 contract, it seems this is a quite bullish bet. The option with symbol: UAL161021C00052500 closed last at: $1.84 or 37.3% up. The stock increased 0.90% or $0.48 during the last trading session, hitting $53.73. About 5.66M shares traded hands or 20.43% up from the average. United Continental Holdings Inc (NYSE:UAL) has declined 8.82% since March 1, 2016 and is downtrending. It has underperformed by 18.06% the S&P500.

Analysts await United Continental Holdings Inc (NYSE:UAL) to report earnings on October, 27. They expect $2.86 EPS, down 36.87% or $1.67 from last year’s $4.53 per share. UAL’s profit will be $935.77M for 4.70 P/E if the $2.86 EPS becomes a reality. After $2.61 actual EPS reported by United Continental Holdings Inc for the previous quarter, Wall Street now forecasts 9.58% EPS growth.

United Continental Holdings Inc (NYSE:UAL) Ratings Coverage

Out of 12 analysts covering United Continental (NYSE:UAL), 9 rate it a “Buy”, 0 “Sell”, while 3 “Hold”. This means 75% are positive. $88 is the highest target while $42 is the lowest. The $66.04 average target is 22.91% above today’s ($53.73) stock price. United Continental has been the topic of 24 analyst reports since July 24, 2015 according to StockzIntelligence Inc. The stock of United Continental Holdings Inc (NYSE:UAL) earned “Outperform” rating by Cowen & Co on Monday, August 31. As per Friday, January 22, the company rating was maintained by Credit Suisse. The firm earned “Buy” rating on Monday, August 24 by Standpoint Research. The stock has “Outperform” rating given by Cowen & Co on Friday, January 22. Morgan Stanley maintained the shares of UAL in a report on Thursday, April 28 with “Overweight” rating. As per Tuesday, March 29, the company rating was initiated by Stephens. The rating was upgraded by Deutsche Bank to “Buy” on Friday, July 24. Credit Suisse downgraded United Continental Holdings Inc (NYSE:UAL) rating on Wednesday, July 6. Credit Suisse has “Neutral” rating and $42 price target. As per Tuesday, August 30, the company rating was upgraded by Raymond James. The rating was maintained by S&P Research on Thursday, September 3 with “Strong Buy”.

Insitutional Activity: The institutional sentiment increased to 0.84 in Q2 2016. Its up 0.18, from 0.66 in 2016Q1. The ratio improved, as 82 funds sold all United Continental Holdings Inc shares owned while 184 reduced positions. 70 funds bought stakes while 154 increased positions. They now own 303.48 million shares or 6.76% less from 325.50 million shares in 2016Q1.
Commonwealth State Bank Of Aus last reported 0.06% of its portfolio in the stock. Mizuho Tru & Ltd, a Japan-based fund reported 224,776 shares. Kbc Grp Incorporated Nv accumulated 20,820 shares or 0.01% of the stock. Morgan Stanley has 1.54 million shares for 0.02% of their US portfolio. The Pennsylvania-based Susquehanna Int Llp has invested 0.02% in United Continental Holdings Inc (NYSE:UAL). Federated Invsts Pa has 0.03% invested in the company for 257,907 shares. New Mexico Educational Retirement Board has 41,300 shares for 0.08% of their US portfolio. Css Lc Il has 9,343 shares for 0.03% of their US portfolio. Gotham Asset Mgmt Lc reported 549,923 shares or 0.27% of all its holdings. Moreover, Premier Asset Managment Ltd Liability Corp has 2.37% invested in United Continental Holdings Inc (NYSE:UAL) for 223,515 shares. Amer Group Inc has 134,486 shares for 0% of their US portfolio. The Massachusetts-based Geode Mgmt Ltd Company has invested 0.06% in United Continental Holdings Inc (NYSE:UAL). Westport Resources Mngmt accumulated 735 shares or 0.01% of the stock. Palo Cap Inc has 0.35% invested in the company for 25,134 shares. Three Bays Cap Limited Partnership accumulated 2.73% or 1.28M shares.

Insider Transactions: Since April 21, 2016, the stock had 14 buys, and 0 insider sales for $204.76 million net activity. $2.94M worth of shares were bought by Harford Barney on Thursday, April 28. $243,905 worth of United Continental Holdings Inc (NYSE:UAL) shares were bought by LADERMAN GERALD. SHAPIRO EDWARD also bought $99.25M worth of United Continental Holdings Inc (NYSE:UAL) shares. KENNEDY JAMES A C had bought 2,000 shares worth $99,800 on Tuesday, April 26. $96,766 worth of United Continental Holdings Inc (NYSE:UAL) shares were bought by Bonds Michael P. $492,255 worth of United Continental Holdings Inc (NYSE:UAL) was bought by Whitehurst James M on Wednesday, April 27. Another trade for 2,000 shares valued at $97,825 was made by COMPTON JAMES E on Thursday, April 28.

United Continental Holdings, Inc. is a holding firm and its principal subsidiary is United Air Lines, Inc. (United). The company has a market cap of $17.58 billion. The Firm transports people and cargo through its mainline operations. It has a 5.73 P/E ratio. It has global air rights in North America, Asia-Pacific, Europe, Middle East, Africa and Latin America.

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