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In recent transactions filed with the Securities and Exchange Commission, Neale Erin Rose, Senior Vice President, General Counsel, and Secretary of Sun Country Airlines Holdings, Inc. (NASDAQ:SNCY), a $845 million market cap airline, executed sales of company stock totaling $36,342. The stock has shown significant momentum, gaining nearly 10% in the past week and trading near its 52-week high of $16.34. According to InvestingPro analysis, SNCY currently appears undervalued based on its Fair Value model.
On January 3, Rose sold 938 shares at approximately $14.18 each, amounting to $13,298. This transaction was carried out to cover tax obligations related to the vesting of restricted stock units, as noted in the filing. Subsequently, on January 6, Rose sold an additional 1,607 shares at a price of $14.34 per share, resulting in a total sale value of $23,044. This sale was executed under a pre-established Rule 10b5-1 trading plan, which was set up on September 12, 2024.
Following these transactions, Rose holds 27,597 shares of Sun Country Airlines.
In other recent news, Sun Country Airlines disclosed mixed results for the third quarter of 2024, with total revenue amounting to $249.5 million, mirroring the previous year's figures. Despite operational challenges such as industry overcapacity and external disruptions, the airline 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.
Sun Country plans to add five leased Oman aircraft by the end of 2024. Looking ahead, the airline 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.
In addition, Goldman Sachs resumed coverage on Sun Country, assigning a Neutral rating and highlighting the airline's robust margins and potential for margin growth into 2025. The firm anticipates that Sun Country's rising profitability will lead to an uptick in free cash flow over the medium term. These developments are part of the airline's recent activities and strategic plans.
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