What's Going On With Spirit Airlines Stock?

Spirit Airlines Inc (NYSE:SAVE) shares are moving Monday. The company filed for a mixed shelf offering late Friday.

What Happened: In a regulatory filing after the market close on Friday, Spirit said it filed for a shelf registration statement that provides for the sale of warrants by one more more selling securityholders, as well as the resale of up to 899,560 shares of common stock issuable upon exercise of the warrants.

Spirit Airlines said it originally issued the Warrants to the U.S. Treasury in a series of private placements. The selling stockholder may now offer and sell the securities in amounts and at prices that will be determined at the time of any such offering. Spirit will not receive any of the proceeds from the sale.

Last month, a federal judge blocked JetBlue’s planned acquisition of Spirit Airlines. Spirit and JetBlue filed a notice of appeal to challenge that ruling.

The potential merger has been viewed as a positive for Spirit shareholders as the low-cost airline has faced recent financial difficulties. JetBlue is up against a deadline to close the merger by July. If a deal is not reached by then, the two sides could vote to extend the closing date or terminate the merger.

How To Buy SAVE Stock

By now you're likely curious about how to participate in the market for Spirit Airlines – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the the case of Spirit Airlines, which is trading at $6.78 as of publishing time, $100 would buy you 14.75 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

SAVE Price Action: Spirit Airlines shares were up 1.8% at $6.77 at the time of publication, according to Benzinga Pro.

Photo: Wikimedia Commons

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