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Sun Country Airlines sees significant $67.9 million stock sale by major shareholder

Published 07/11/2024, 03:34
Sun Country Airlines sees significant $67.9 million stock sale by major shareholder
SNCY
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Sun Country Airlines Holdings, Inc. (NASDAQ:SNCY) saw a notable transaction as SCA Horus Holdings, LLC, a significant shareholder, sold 4,815,000 shares of common stock. The shares were sold at a price of $14.10 each, amounting to a total of approximately $67.9 million. Following this transaction, SCA Horus Holdings retains ownership of 6,346,105 shares. The shares are held indirectly through SCA Horus Holdings, with AP VIII (SCA Stock AIV), LLC as its sole member. Antoine Munfakh and Noah Falk serve as directors of the LLC.

In other recent news, Sun Country Airlines reported a mixed financial performance in its Third Quarter 2024 Earnings Call. The airline's total revenue for Q3 2024 remained nearly unchanged year-over-year at $249.5 million. Despite operational challenges such as industry overcapacity and external disruptions, Sun Country remains optimistic about its unit revenue trends and margin expansion. The airline also revealed that its cargo segment revenue hit a record $29.2 million, up 11.9%, with further growth expected. In terms of future plans, Sun Country intends to add five leased Oman aircraft by the end of 2024. The airline has projected its Q4 revenue to be between $250 million and $260 million, with an operating margin of 7% to 9%. Lastly, while no immediate plans for share buybacks are in place, the possibility will be reviewed in 2025.

InvestingPro Insights

Sun Country Airlines Holdings, Inc. (NASDAQ:SNCY) has recently experienced significant market attention, as evidenced by its strong performance metrics. According to InvestingPro data, SNCY has shown impressive short-term gains with a 56.7% price return over both the past month and three months. This surge aligns with the recent large-scale stock sale by SCA Horus Holdings, LLC, potentially indicating a strategic move to capitalize on the stock's upward momentum.

The company's financial health appears solid, with a market capitalization of $824.8 million and a price-to-earnings ratio of 18.42, suggesting a reasonable valuation compared to its earnings. Sun Country's revenue for the last twelve months stands at $1.06 billion, with a modest growth of 2.87% over the same period.

InvestingPro Tips highlight that three analysts have revised their earnings upwards for the upcoming period, which could signal positive expectations for the company's future performance. However, it's worth noting that the stock's RSI suggests it may be in overbought territory, which investors should consider in light of the recent share sale by a major shareholder.

For readers interested in a deeper analysis, InvestingPro offers 12 additional tips for SNCY, providing a more comprehensive view of the company's prospects and potential risks.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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