David M. Davis, President and Chief Financial Officer of Sun Country Airlines Holdings Inc. (NASDAQ:), recently sold a significant portion of its stakes in the company. According to a filing with the Securities and Exchange Commission, Davis sold 59,380 shares on January 21, 2025, at a weighted average price of $16.9096. The next day, he sold an additional 48,464 shares at a weighted average price of $17.0209. The sales occurred near the stock’s 52-week high of $17.51, during a period of strong performance, with the stock up nearly 39% over the past six months. According to InvestPro analysis, the stock currently appears undervalued based on its fair value metrics. These transactions, carried out within the framework of a pre-established trading plan under Rule 10b5-1, totaled approximately $1.8 million.
In addition to these sales, Davis exercised stock options, acquiring a total of 108,844 shares at the exercise price of $5.30 per share over two days. Despite the sales, Davis continues to own a substantial number of shares of the company, maintaining a post-trade balance of 32,260 shares.
Separately, Sun Country Airlines has been the subject of analyst attention, with JPMorgan and Goldman Sachs initiating coverage. JPMorgan assigned an overweight rating, citing the airline’s diversified revenue streams and strong operating margins. Goldman Sachs, for its part, gave it a neutral rating, highlighting the company’s robust margins and its potential for margin growth through 2025.
Sun Country recently reported its third quarter results, with total revenue flat at $249.5 million. This is despite a 3% drop in passenger segment revenues and a 5.9% reduction in regular service revenues. However, cargo segment revenues reached a record high of $29.2 million, an increase of 11.9%.
The airline also announced plans to add five leased aircraft to Oman by the end of 2024 and is considering the possibility of share buybacks in 2025. Looking ahead, Sun Country forecasts revenue of fourth quarter between $250 million and $260 million, with an operating margin of 7% to 9%. These recent developments highlight Sun Country’s unique business model, combining passenger, cargo and charter services, which has positioned it favorably in the market.
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