The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
A glance at the performance of these three stocks since the beginning of November paints a clear picture of how the markets have reacted to the companies’ latest reported figures.
easyJet has seen its share jump 1314p to the current price of 1442p – a 9.74% increase. IAG’s shares have traded from 348p up to the current level of 374p, increasing 7.47%. This is in contrast to Ryanair, which started the month at a price of 606p and then dropped to 582p, declining by 3.96%.
These figures have prompted the stockbroker Jefferies to change its price targets for the three airlines. easyJet rises from 1470p to 1620p; IAG goes up from 355p to 410p, and Ryanair drops from €8.30 to €7.50.
The figures clearly reflect the capital returns that the three airlines have given their investors. However, the real bonus has come to those holding easyJet shares. Not only have they retained the 2.38% dividend yield that the stock was offering, but on top of that they will benefit from the £175 million that will be passed back to shareholders in the form of a one-off special dividend.