Why JetBlue Airways Stock Is Falling Sharply

JetBlue Airways Corporation JBLU shares are trading lower Monday after the company announced a $400 million convertible senior notes offering.

The Details:

JetBlue said it also expects to grant the initial purchasers of the notes an option to purchase up to an additional $60 million aggregate principal amount of the notes. The company said it intends to use the net proceeds from the offering to repurchase a portion of their existing 0.50% senior convertible notes due 2026 with any remaining net proceeds to be used for general corporate purposes.

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JetBlue shares spiked at the end of July following the company's second-quarter earnings release which beat analyst expectations on the top and bottom lines. According to data from Benzinga Pro, JetBlue shares are trading below the stock’s 50-day moving average of $5.83 and 19.16% of shares are being sold short. 

Will JBLU Stock Go Up:

When trying to assess whether or not JetBlue Airways will trade higher from current levels, it's a good idea to take a look at analyst forecasts.

Wall Street analysts have an average 12-month price target of $5.50 on JetBlue Airways. The Street high target is currently at $6.50 and the Street low target is $4. Of all the analysts covering JetBlue Airways, no one has positive ratings, 3 have neutral ratings and no one has negative ratings.

In the last month, 2 analysts have adjusted price targets. Here's a look at recent price target changes [Analyst Ratings]. Benzinga also tracks Wall Street's most accurate analysts. Check out how analysts covering JetBlue Airways have performed in recent history.

Stocks don't move in a straight line. The average stock market return is approximately 10% per year. JetBlue Airways is 0.09% up year-to-date. The average analyst price target suggests the stock could have further upside ahead.

For a broad overview of everything you need to know about JetBlue Airways, visit here. If you want to go above and beyond, there's no better tool to help you do just that than Benzinga Pro. Start your free trial today.

JBLU Price Action: According to Benzinga Pro, JetBlue Airways shares are down 17.4% at $4.99 at the time of publication Monday.

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