Zacks Investment Research lowered shares of Copa (NYSE:CPA) from a buy rating to a hold rating in a report published on Wednesday.
According to Zacks, “We are impressed by Copa Holdings' initiatives to modernize its fleet. To this end, the company received delivery of a Boeing 737 MAX 9 aircraft in January 2019. Apart from adding new planes, this carrier is replacing outdated ones as part of its fleet modernization efforts. The carrier sold one Embraer 190 aircraft to Azorra aviation in January. Moreover, Copa Holdings' cost cutting efforts have led to a reduction in non-fuel unit costs, which declined 5.8% in the final quarter of 2018 . Despite such positives, shares of the company have shed more than 39% of its value in a year. The company has an unimpressive earnings history having outperformed the Zacks Consensus Estimate in only one of the preceding four quarters. Its performance with respect to unit revenues is concerning as well. Additionally, the company's decision to trim dividend indicates its financial struggles.”
Several other analysts also recently commented on the company. ValuEngine downgraded Copa from a hold rating to a sell rating in a research note on Friday, March 1st. Imperial Capital reissued an underperform rating and issued a $77.00 price objective (up from $68.00) on shares of Copa in a research note on Wednesday, February 20th. Cowen reissued a hold rating and issued a $85.00 price objective on shares of Copa in a research note on Sunday, November 18th. TheStreet downgraded Copa from a b rating to a c+ rating in a research note on Thursday, February 14th. Finally, Citigroup reissued a neutral rating and issued a $85.00 price objective on shares of Copa in a research note on Tuesday, December 18th. Two equities research analysts have rated the stock with a sell rating, six have assigned a hold rating and eight have issued a buy rating to the stock. Copa has a consensus rating of Hold and an average price target of $98.08.
Copa (NYSE:CPA) last posted its quarterly earnings results on Wednesday, February 13th. The transportation company reported $1.04 earnings per share for the quarter, missing analysts’ consensus estimates of $1.06 by ($0.02). Copa had a return on equity of 13.56% and a net margin of 3.29%. The firm had revenue of $656.06 million for the quarter, compared to analyst estimates of $660.29 million. During the same period last year, the company posted $2.36 earnings per share. The firm’s quarterly revenue was down 2.7% compared to the same quarter last year. On average, equities research analysts forecast that Copa will post 7.13 earnings per share for the current year.
The business also recently disclosed a quarterly dividend, which was paid on Friday, March 15th. Stockholders of record on Thursday, February 28th were paid a $0.65 dividend. This represents a $2.60 annualized dividend and a dividend yield of 3.11%. The ex-dividend date was Wednesday, February 27th. Copa’s dividend payout ratio (DPR) is presently 39.88%.
Several institutional investors have recently modified their holdings of the company. Bank of Montreal Can boosted its holdings in shares of Copa by 16.1% during the third quarter. Bank of Montreal Can now owns 5,975 shares of the transportation company’s stock valued at $477,000 after acquiring an additional 829 shares during the period. Stone Ridge Asset Management LLC boosted its holdings in shares of Copa by 70.8% during the third quarter. Stone Ridge Asset Management LLC now owns 9,180 shares of the transportation company’s stock valued at $733,000 after acquiring an additional 3,806 shares during the period. LSV Asset Management acquired a new position in shares of Copa during the third quarter valued at $590,000. SG Americas Securities LLC boosted its holdings in shares of Copa by 94.6% during the third quarter. SG Americas Securities LLC now owns 26,127 shares of the transportation company’s stock valued at $2,086,000 after acquiring an additional 12,702 shares during the period. Finally, Nomura Asset Management Co. Ltd. boosted its holdings in shares of Copa by 69.8% during the third quarter. Nomura Asset Management Co. Ltd. now owns 5,100 shares of the transportation company’s stock valued at $407,000 after acquiring an additional 2,097 shares during the period. 63.88% of the stock is owned by hedge funds and other institutional investors.
Copa Company Profile
Copa Holdings, SA, through its subsidiaries, provides airline passenger and cargo services. The company offers flights to 75 destinations in 31 countries in North, Central, and South America, as well as the Caribbean. As of April 12, 2018, it operated a fleet of 101 aircraft comprising 81 Boeing 737NG aircraft and 20 EMBRAER-190s aircraft.
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