Key Points
- Insiders are buying EasyJet and hold a large amount of the stock.
- The company beat Q1 guidance and guided the year higher.
- Analysts are raising their targets and setting this market up for a reversal.
If you are looking for a stock with high insider interest and insiders buying EasyJet plc (OTCMKTS: ESYJY) could be your stock. This company has high insider interest, the insiders have been buying regularly for years, and it just reported a blow-out quarter. Combine this with the lowest share prices in history, and it is easy to see why the insiders are buying. While EasyJet isn’t a flashy carrier, it has a strong business and grows in ways larger carriers can’t.
The company’s revenue growth is slowing but sustaining a high-triple-digit as the company expands territory, gains share and deepens the penetration of add-on services.
Who’s buying inside EasyJet? By the look of things, everyone but CFO Kenton Jarvis is by far the most regular. He’s been buying in small chunks of 30 and 40 shares monthly for years and building a healthy position in the company. Altogether, the insiders own more than 16.25% of the company, which is growing. Insidertrades.com has not tracked any sales for the last 3 years, although the pace of purchases has slowed.
The institutions are in support of EasyJet, but their activity is mixed. The takeaway is that institutions own about 38% of the company and may be expected to add to positions with shares trading at historically low levels.
EasyJet Outflies Its Guidance, Shares Move Higher
EasyJet had a strong quarter and easily outpaced its guidance despite the impact of air traffic controller strikes in Europe. The company beat on the top and bottom lines citing strong demand and robust operational performance. Bookings are up for the quarter and expected to remain strong through the summer, aided by a 40% increase in capacity from January to March. Capacity is expected to grow as the year progresses and strikes are ended. The strength led the company to raise its guidance for the year again and, even now, may be cautious.
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“Demand for easyJet’s flights and holidays has continued to grow in the half, resulting in more than a £120M improvement in our performance as well as a billion-pound revenue improvement year on year,” CEO Johan Lundgren said. “We see continued strong booking momentum into summer as customers prioritize spending on travel and choose airlines like easyJet offering the best value and destination mix, as well as easyJet holidays, which is continuing its steep growth trajectory as the fastest growing holidays company in the UK.”
The analysts have yet to comment, but 2 things favor EasyJet. The 1st is the trend in sentiment toward EasyJet is positive, the 2nd is that reports from carriers like Delta Airlines are consistent with an industry-wide recovery in business that has the industry on track to reach pre-pandemic levels. Regarding EasyJet, there are 9 analysts with current ratings on EasyJet. The 2 most recent are Ups to Buy from Sell/Neutral, with price targets well above the current price action.
EasyJet Regains A Key Support Level
EasyJet shares have been in a downtrend for years but have hit bottom and are now reversing. The action has the market above the 150-day EMA and the 2022 bottom, which is now support. Assuming the summer unfolds as expected, this stock should continue to drift sideways with an upward bias until later. The Q2 or Q3 results are the next catalysts and could drive the stock above the $10 level for US markets.
Companies in This Article:
| Company | Current Price | Price Change | Dividend Yield | P/E Ratio | Consensus Rating | Consensus Price Target |
|---|
| Delta Air Lines (DAL) | $64.76 | +2.4% | 0.93% | 8.99 | Buy | $71.22 |
| easyJet (ESYJY) | $6.66 | +0.1% | 26.15% | 1.47 | Buy | N/A |
Experience
Thomas Hughes has been a contributing writer for InsiderTrades.com since 2019.
Areas of Expertise
Technical analysis, the S&P 500; retail, consumer, consumer staples, dividends, high-yield, small caps, technology, economic data, oil, cryptocurrencies
Education
Associate of Arts in Culinary Technology
Past Experience
Market watcher, trader and investor for numerous websites. Founded Passive Market Intelligence LLC to provide market research insights.
