Fannie Mae, Freddie Mac shares tumble after conservatorship comments
David M. Davis, President and CFO of Sun Country Airlines Holdings , Inc. (NASDAQ:SNCY), a $899 million market cap airline company, recently executed significant stock transactions. The stock has shown strong momentum with a 31% gain over the past six months. According to a recent filing, Davis sold shares worth approximately $1.05 million over two days. The sales were conducted under a pre-established Rule 10b5-1 trading plan, with shares sold at prices ranging from $16.90 to $17.00.
In addition to the sales, Davis exercised options to acquire shares at a price of $5.30 each, resulting in a total acquisition value of $329,029. Following these transactions, Davis holds 32,260 shares directly. These transactions reflect Davis's ongoing management of his holdings in the Minneapolis-based airline company.
In other recent news, Sun Country Airlines reported mixed results for Q3 2024, with total revenue remaining steady at $249.5 million compared to the previous year. Despite a 3% decrease in passenger segment revenue and a 5.9% reduction in scheduled service revenue, the airline's cargo segment revenue hit a record $29.2 million, marking an 11.9% increase. Sun Country's unique business model, combining passenger, cargo, and charter services, has positioned it favorably in the market, leading to robust margins and potential for margin growth into 2025, as highlighted by Goldman Sachs.
JPMorgan initiated coverage of Sun Country, assigning an Overweight rating and a price target of $23.00, reflecting a positive outlook based on the airline's diversified revenue stream and strong operational margins. The firm's price target suggests a significant upside potential from current levels. Goldman Sachs also resumed coverage of Sun Country, assigning a Neutral rating and anticipating an increase in free cash flow over the medium term.
Recent developments include the addition of five leased Oman aircraft by the end of 2024 and a review of the possibility of share buybacks in 2025. For Q4, Sun Country projects revenue between $250 million and $260 million, with an operating margin of 7% to 9%. These developments are part of the airline's strategic plans and recent activities.
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