Controladora Vuela Compania de Aviacion (NYSE:VLRS) Sets New 12-Month High on Analyst Upgrade

Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (NYSE:VLRS)’s share price hit a new 52-week high during trading on Friday after Barclays upgraded the stock from an equal weight rating to an overweight rating. Barclays now has a $11.00 price target on the stock, up from their previous price target of $9.00. Controladora Vuela Compania de Aviacion traded as high as $9.99 and last traded at $9.8350, with a volume of 634410 shares trading hands. The stock had previously closed at $8.32.

Other research analysts have also issued research reports about the company. Weiss Ratings reissued a “sell (d)” rating on shares of Controladora Vuela Compania de Aviacion in a report on Wednesday, October 8th. Wall Street Zen raised Controladora Vuela Compania de Aviacion from a “sell” rating to a “hold” rating in a research note on Saturday, September 20th. JPMorgan Chase & Co. boosted their target price on shares of Controladora Vuela Compania de Aviacion from $7.00 to $8.00 and gave the company an “overweight” rating in a report on Friday, September 19th. Citigroup downgraded shares of Controladora Vuela Compania de Aviacion from a “buy” rating to a “neutral” rating and set a $7.00 target price on the stock. in a research note on Friday, August 22nd. Finally, Evercore ISI lifted their target price on shares of Controladora Vuela Compania de Aviacion from $9.00 to $12.00 and gave the stock an “outperform” rating in a research report on Monday, September 29th. Six equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Controladora Vuela Compania de Aviacion presently has a consensus rating of “Moderate Buy” and an average target price of $8.67.

Key Headlines Impacting Controladora Vuela Compania de Aviacion

Here are the key news stories impacting Controladora Vuela Compania de Aviacion this week:

• Positive Sentiment: Volaris (Vuela, VLRS) and Viva Aerobus announced formation of a new Mexican airline group under a holding company to expand low-fare travel and connectivity — an official deal announcement that implies scale, network and potential cost synergies that could materially boost VLRS’s long-term revenue and margin prospects. Volaris and Viva Announce the Formation of a New Mexican Airline Group
• Positive Sentiment: Barclays upgraded VLRS from “equal weight” to “overweight” and raised its price target to $11 — the upgrade and higher PT signal analyst confidence the merger and combined entity will create value; upgrades often attract buyers and can support near-term upside. Benzinga Coverage of Barclays Upgrade
• Positive Sentiment: Reuters reported the two carriers were near a merger agreement prior to the formal announcement, adding independent media confirmation and reducing deal uncertainty — this corroboration likely amplified investor response. Reuters: Mexican airlines Volaris and Viva Aerobus near merger agreement
• Neutral Sentiment: Seeking Alpha published the M&A call transcript — useful for investors who want details on proposed governance, timing, integration plans and management commentary, but it doesn’t by itself change deal economics. M&A Call Transcript
• Neutral Sentiment: TipRanks and other outlets summarized the Volaris–Viva tie-up; these articles amplify visibility but largely reiterate corporate releases and reports. TipRanks: Volaris and Viva Aerobus Agree to Merge
• Neutral Sentiment: Brokerage consensus still reads as a “Hold” per recent compilation — some analysts remain cautious pending regulatory approvals, integration execution and clearer pro forma financials. American Banking News: Consensus Hold
• Negative Sentiment: An earlier Barclays note had kept an “equal weight” rating with a lower $9 target shortly before the upgrade; that prior stance highlights remaining analyst caution and the potential for mixed near-term reactions if execution risks or regulatory hurdles surface. Benzinga: Earlier Barclays Note

Hedge Funds Weigh In On Controladora Vuela Compania de Aviacion

Several institutional investors and hedge funds have recently bought and sold shares of VLRS. Russell Investments Group Ltd. boosted its holdings in Controladora Vuela Compania de Aviacion by 11.4% in the first quarter. Russell Investments Group Ltd. now owns 69,150 shares of the transportation company’s stock worth $373,000 after acquiring an additional 7,088 shares in the last quarter. American Century Companies Inc. raised its stake in Controladora Vuela Compania de Aviacion by 4.1% in the 1st quarter. American Century Companies Inc. now owns 273,847 shares of the transportation company’s stock worth $1,429,000 after acquiring an additional 10,706 shares during the last quarter. Wellington Management Group LLP purchased a new stake in Controladora Vuela Compania de Aviacion in the first quarter valued at approximately $3,312,000. Itau Unibanco Holding S.A. acquired a new stake in shares of Controladora Vuela Compania de Aviacion in the first quarter worth $534,000. Finally, Ancient Art L.P. raised its stake in shares of Controladora Vuela Compania de Aviacion by 22.2% during the 1st quarter. Ancient Art L.P. now owns 1,816,225 shares of the transportation company’s stock valued at $9,481,000 after buying an additional 329,496 shares during the last quarter. 53.32% of the stock is owned by hedge funds and other institutional investors.

Controladora Vuela Compania de Aviacion Price Performance

The stock has a fifty day simple moving average of $7.07 and a 200-day simple moving average of $6.11. The company has a market capitalization of $1.10 billion, a price-to-earnings ratio of -17.48 and a beta of 1.95. The company has a debt-to-equity ratio of 1.73, a current ratio of 0.67 and a quick ratio of 0.66.

Controladora Vuela Compania de Aviacion (NYSE:VLRS) last posted its quarterly earnings data on Monday, October 27th. The transportation company reported $0.05 EPS for the quarter, beating analysts’ consensus estimates of ($0.03) by $0.08. The business had revenue of $784.00 million during the quarter, compared to analysts’ expectations of $783.85 million. Controladora Vuela Compania de Aviacion had a negative return on equity of 20.74% and a negative net margin of 2.07%. On average, equities research analysts anticipate that Controladora Vuela Compania de Aviacion, S.A.B. de C.V. will post 1.21 EPS for the current year.

About Controladora Vuela Compania de Aviacion

Controladora Vuela Compañia de Aviacion, SAB de CV (NYSE: VLRS) is a Mexico-based airline holding company whose primary business is the operation of low-cost scheduled air transportation services. Through its principal operating subsidiary, Volaris, the company provides passenger and cargo flights on domestic and international routes. Its business model emphasizes unbundled ancillary services and point-to-point operations designed to offer competitive fares across its network.

Volaris serves more than 120 routes linking major metropolitan areas and secondary cities in Mexico, the United States and Central America.