Board Member Of United Airlines Holdings Sold $129K In Stock

It was reported on May 27, that James M Whitehurst, Board Member at United Airlines Holdings UAL executed a significant insider sell, according to an SEC filing.

What Happened: Whitehurst opted to sell 1,730 shares of United Airlines Holdings, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The transaction's total worth stands at $129,057.

The latest market snapshot at Wednesday morning reveals United Airlines Holdings shares down by 1.3%, trading at $77.16.

Discovering United Airlines Holdings: A Closer Look

United Airlines is a major US network carrier with hubs in San Francisco, Chicago, Houston, Denver, Los Angeles, New York/Newark, and Washington, D.C. United operates a hub-and-spoke system that is more focused on international and long-haul travel than its large US peers.

United Airlines Holdings's Financial Performance

Revenue Growth: Over the 3 months period, United Airlines Holdings showcased positive performance, achieving a revenue growth rate of 5.37% as of 31 March, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Analyzing Profitability Metrics:

• Gross Margin: With a high gross margin of 25.16%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): United Airlines Holdings's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.18.

Debt Management: United Airlines Holdings's debt-to-equity ratio is notably higher than the industry average. With a ratio of 2.61, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: United Airlines Holdings's P/E ratio of 7.11 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.45 is lower than the industry average, implying a discounted valuation for United Airlines Holdings's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 7.04 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

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Why Insider Activity Matters in Finance

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

A Closer Look at Important Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of United Airlines Holdings's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.