As we have had traffic statistics for September from Easyjet (EZJ). These saw a continuation of growth with passenger numbers up by 7.6% on the month and 6% year on year. The load factor (how full the planes are) was also up by 0.9% on the month and over the year to a decent 93.1% & 91.5% respectively. They also re-confirmed that their full year profit before tax guidance continues to be within a range of £675 million to £700 million for the year to 30 September 2015.
Regular readers may re-call that I suggested boarding this one back in June when it was trading below 1600p and at the time I suggested that 1800p could be a reasonable target for it. This price has now been achieved and this has given a decent 20% or so out performance against a soggy market over the same period.
So trader types might want to think about taking profits up here and go looking for something else which has perhaps suffered more in the recent market declines. While medium term investors might want to stay on board this well managed group as it remains reasonable value on around 12x next years earnings with a 3.5% yield. It also still looks OK if not outstanding on the Compound Income Scores with a 79 score, while Stockopedia's Stock Rank is 87 which interestingly is driven more by quality and momentum rather than value.
It is also worth noting that this one unusually only pays its dividend once a year so the final and only dividend is due to be announced soon and this usually goes xd in February before being paid in March. So if income is important to you then it might be worth staying on board for this years dividend which is expected to yield around 3.3% at the current price of 1809p. In addition there is also a possibility of a special dividend as they paid one of these back in 2014 and they still have large cash balances.
Technically, I also note that the previous 12 month highs were closer to 1900p, so as the stock is not yet over bought and with a possible tail wind from a stronger market if we do get a year end rally then I guess it is possible it could push on up a bit further too over the results and the year end perhaps?