David M. Davis, President and CFO of Sun Country Airlines Holdings , Inc. (NASDAQ:SNCY), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Davis sold 59,380 shares on January 21, 2025, at a weighted average price of $16.9096. The following day, he sold an additional 48,464 shares at a weighted average price of $17.0209. The sales occurred near the stock's 52-week high of $17.51, during a period of strong performance with the stock up nearly 39% over the past six months. According to InvestingPro analysis, the stock currently appears undervalued based on its Fair Value metrics. These transactions, conducted under a pre-established Rule 10b5-1 trading plan, totaled approximately $1.8 million.
In addition to these sales, Davis exercised stock options, acquiring a total of 108,844 shares at an exercise price of $5.30 per share over two days. Despite the sales, Davis continues to hold a substantial number of shares in the company, maintaining a post-transaction balance of 32,260 shares.
In other recent news, Sun Country Airlines has been the subject of analyst attention, with both JPMorgan (NYSE:JPM) and Goldman Sachs (NYSE:GS) initiating coverage. JPMorgan assigned an Overweight rating, citing the airline's diversified revenue stream and strong operational margins. Goldman Sachs, on the other hand, assigned a Neutral rating, highlighting the company's robust margins and potential for margin growth into 2025.
Sun Country recently reported Q3 earnings, with total revenue holding steady at $249.5 million. This was despite a 3% decrease in passenger segment revenue and a 5.9% reduction in scheduled service revenue. However, the cargo segment revenue hit a record $29.2 million, marking an 11.9% increase.
The airline also disclosed plans to add five leased Oman aircraft by the end of 2024 and is considering the possibility of share buybacks in 2025. Looking ahead, Sun Country projects Q4 revenue between $250 million and $260 million, with an operating margin of 7% to 9%. These recent developments underscore Sun Country's unique business model, combining passenger, cargo, and charter services, which has positioned it favorably in the market.
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