David M. Davis, President and CFO of Sun Country Airlines Holdings, Inc. (NASDAQ:SNCY), recently sold 2,760 shares of the company's common stock. The shares were sold at an average price of $15.9333 each, totaling approximately $43,975. The transaction comes as Sun Country's stock trades near its 52-week high, having delivered an impressive 29% return over the past six months. According to InvestingPro analysis, the company maintains a GREAT financial health score. This transaction was conducted to cover tax withholding obligations related to the vesting of restricted stock units, as indicated in the company's SEC filing. Following this sale, Davis retains ownership of 32,260 shares in the airline company. InvestingPro analysis suggests the stock is currently undervalued, with 8 additional exclusive ProTips available to subscribers, including key insights about earnings revisions and profitability forecasts.
"In other recent news, Sun Country Airlines has reported a mixed performance for Q3 2024, with total revenue remaining steady at $249.5 million compared to the previous year. Despite a decrease in passenger segment revenue by 3% and a 5.9% reduction in scheduled service revenue, the cargo segment revenue hit a record $29.2 million, marking an 11.9% increase. The airline also plans to add five leased Oman aircraft by the end of 2024.
Goldman Sachs (NYSE:GS) has resumed coverage of the airline, assigning a Neutral rating to its shares. The firm emphasized Sun Country's robust margins, potential for margin growth into 2025, and the stability provided by long-term contracts in its cargo and charter operations. The airline's distinctive approach to seasonal capacity management was also highlighted.
Furthermore, Sun Country is expected to benefit from an expanded cargo service through a lucrative contract with Amazon (NASDAQ:AMZN). The airline's rising profitability, according to Goldman Sachs, will lead to an increase in free cash flow over the medium term. These are among the recent developments for Sun Country Airlines, which is maintaining optimism despite mixed Q3 results."
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