MINNEAPOLIS—Whitney Grant, the Chief Revenue Officer and Senior Vice President of Sun Country Airlines Holdings, Inc. (NASDAQ:SNCY), recently sold a significant portion of the company's stock, according to a filing with the Securities and Exchange Commission. The sale comes as the $851 million market cap airline trades near its 52-week high of $16.46, having gained nearly 29% over the past six months. According to InvestingPro analysis, the stock appears to be undervalued based on its Fair Value calculations.
On January 10, Grant sold 2,127 shares at an average price of $15.9796, resulting in a total transaction value of $33,988. This sale was conducted to cover tax withholding obligations related to the vesting of restricted stock units, as indicated in the filing. It was a mandatory transaction and not a discretionary trade.
Additionally, on January 13, Grant sold another 3,912 shares at an average price of $15.88, totaling $62,122. This transaction was executed under a pre-established Rule 10b5-1 trading plan, which Grant adopted on March 4, 2024.
Following these transactions, Grant holds 16,455 shares of Sun Country Airlines.
"In other recent news, Sun Country Airlines Holdings reported mixed results for the third quarter of 2024. The airline's total revenue for the period remained consistent with the previous year, standing at $249.5 million. However, the passenger segment revenue saw a decrease of 3%, and scheduled service revenue dropped by 5.9%. On a brighter note, the cargo segment revenue hit a record $29.2 million, up 11.9%, with further growth anticipated.
Goldman Sachs has resumed coverage on Sun Country, assigning a Neutral rating to the airline's shares. The firm highlighted the company's robust margins and potential for margin growth into 2025. This growth is anticipated to be driven by improved pilot staffing and an expanded cargo service through a lucrative contract with Amazon (NASDAQ:AMZN).
Looking forward, Sun Country projects Q4 revenue between $250 million and $260 million, with an operating margin of 7% to 9%. The company also plans to add five leased Oman aircraft by the end of 2024. While share buybacks are not in the immediate pipeline, the possibility will be reviewed in 2025. These developments are part of Sun Country's recent strategic plans."
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