Azul S.A. (AZUL): Why It Fell -3.5% Today, And What Comes Next

Big changes are happening at Azul S.A. (NYSE:AZUL), which makes the stock worth watching today. The company is among the top losers of the stock market today, sinking -3.5% or (-1.2 points) to $33.05 from its previous close of $34.25. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 272378 contracts so far this session. AZUL shares had a relatively better volume day versus average trading capacity of 602.26 thousand shares, but with a 6.82 million float and a 0% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for AZUL stock indicates that the average analyst price target is $35.79 per share. This means the stock has a potential increase of 8.29% from where the AZUL share price has been trading recently which is between $33.92 and $34.75. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $30.8.

The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Azul Posts Solid May Traffic Data on High Domestic Demand” and dated June 07, 2019.

During the recent trading session for Azul S.A. (NYSE:AZUL), the company witnessed their stock drop by $-1.75 over a week and surge $5.02 from the price 20 days ago. When compared to their established 52-week high of $36.08, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 06/20/19. The recent low of $15.53 stood for a -8.4% since 07/03/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0 is also allocated to the stock. Since the beta is less than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for Azul S.A., the two-week RSI stands at 57.78. This figure suggests that AZUL stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current AZUL readings is similarly very revealing as it has a stochastic reading of 55.66% at this stage. This figure means that AZUL share price today is being neutral.

Technical chart claims that Azul S.A. (AZUL) would settle between $34.69/share to $35.14/share level. However, if the stock price goes below the $33.86 mark, then the market for Azul S.A. becomes much weaker. If that happens, the stock price might even plunge as low as $33.48 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.47. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at Morgan Stanley raised their recommendation on shares of AZUL from Equal-Weight to Overweight in their opinion released on January 10. Goldman analysts have lowered their rating of Azul S.A. (NYSE:AZUL) stock from Buy to Neutral in a separate flash note issued to investors on December 03. Analysts at Goldman, made their first call for the equity with a Buy recommendation, according to a research note that dated back to July 16.

AZUL equity has an average rating of 1.57, with the figure leaning towards a bullish end. 7 analysts who tracked the company were contacted by Reuters. Amongst them, 1 rated the stock as a hold while the remaining 6 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 6 analysts rated Azul S.A. (NYSE:AZUL) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, AZUL stock price is currently trading at 11.57X forward 12-month Consensus EPS estimates, and its P/S ratio is 1.33 while for the average stock in the same group, the multiple is 0.89. Azul S.A. current P/E ratio of 3905.03 means it is trading at a premium against its industry’s 10.8. In the past 5 years, this ratio for the stock has been fluctuating between 0 and 0.

Azul S.A. (AZUL)’s current-quarter revenues are projected to climb by nearly 15.76% to hit $651020, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over 17.22% from $2.52 billion to a noteworthy $2.95 billion. At the other end of the current quarter income statement, Azul S.A. is expected to see its adjusted earnings surge by roughly 154.55% to hit $0.06 per share. For the fiscal year, AZUL’s earnings are projected to climb by roughly 14.47% to hit $1.82 per share.