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Whitney Grant, Chief Revenue Officer and Senior Vice President of Sun Country Airlines Holdings, Inc. (NASDAQ:SNCY), recently sold shares of the company in two separate transactions. The sales come as SNCY trades near its 52-week high of $16.34, with the stock showing strong momentum, up nearly 10% in the past week. On January 3, Grant sold 474 shares at a price of $14.19 each, generating a total of $6,725. This sale was executed to cover tax obligations related to the vesting of restricted stock units. Subsequently, on January 6, Grant sold an additional 813 shares at $14.34 per share, amounting to $11,658. This transaction was carried out under a pre-established Rule 10b5-1 trading plan. Following these sales, Grant retains ownership of 22,494 shares in the company.According to InvestingPro analysis, Sun Country Airlines appears undervalued based on its Fair Value estimate, with analyst targets ranging from $14 to $24 per share. The company maintains a "GOOD" overall financial health rating, making it an interesting stock for further research. Discover more insights and detailed analysis in the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Sun Country Airlines Holdings has disclosed mixed results for the third quarter of 2024. The airline reported total revenue for Q3 2024 of $249.5 million, mirroring the previous year's figures. Despite operational challenges like industry overcapacity and external disruptions, Sun Country remains hopeful about its unit revenue trends and margin expansion. The passenger segment revenue decreased by 3%, and scheduled service revenue saw a 5.9% reduction. However, the cargo segment revenue hit a record $29.2 million, up 11.9%, with further growth expected.
Furthermore, Sun Country Airlines is anticipated to benefit from an expanded cargo service through a more lucrative contract with Amazon (NASDAQ:AMZN) throughout the year. Goldman Sachs, which resumed coverage on Sun Country's stock, anticipates that the airline's rising profitability will lead to an uptick in free cash flow over the medium term. This financial outlook is supported by the airline's current fleet, which is deemed sufficient to sustain its growth strategy for the next several years without the need for additional aircraft acquisitions.
Looking ahead, Sun Country projects Q4 revenue between $250 million and $260 million, with an operating margin of 7% to 9%. While share buybacks are not in the immediate pipeline, the possibility will be reviewed in 2025. These developments are part of the airline's recent activities and strategic plans.
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