What's Going On With Spirit Airlines Stock?

Spirit Airlines, Inc. SAVE shares are trading higher Tuesday. The company introduced new premium offerings, and a U.S. appeals court has put a stop to President Joe Biden‘s administration's rule requiring airlines to disclose fees upfront.

The Details:

Airline stocks are trading higher after the Fifth U.S. Circuit Court of Appeals temporarily blocked a rule requiring airlines to disclose fees upfront, stating that it "likely exceeds DOT's authority and will irreparably harm airlines."

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Investors may also be reacting to an announcement from Spirit that it will offer guests the option to select from four new travel package options: Go Big, Go Comfy, Go Savvy and Go. 

The packages include a variety of options such as snacks and beverages, reduced baggage fees, priority check-in and boarding, seating options and Wi-Fi service. 

“We’re unveiling a new era in Spirit’s history and taking low-fare travel to new heights with enhanced options that are unlike anything we’ve offered before,” said Ted Christie, Spirit’s CEO. “We listened to our Guests and are excited to deliver what they want: choices for an elevated experience that are affordable and provide unparalleled value.”

According to data from Benzinga Pro, Spirit Airlines shares are trading below the stock’s 50-day moving average of $3.43 and 19.11% of shares are being sold short. 

SAVE Stock Prediction 2024:

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Spirit Airlines, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Spirit Airlines, the 200-day moving average sits at $7.66, according to Benzinga Pro, which is above the current price of $3.07. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

SAVE Price Action: According to Benzinga Pro, Spirit Airlines shares are up 6.97% at $3.07 at the time of publication Tuesday.

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