Ryanair (RYAAY) stock soared on Wednesday alongside an update to the war between the U.S. and Iran. The countries reached a two-week ceasefire agreement yesterday, just before a deadline from President Donald Trump that would have kicked off massive bombings of Iran. This ceasefire agreement has boosted airline stocks today, including RYAAY.
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One of the major reasons for these rallies is the price of oil. With the Strait of Hormuz shipping lane caught in the conflict, the price of oil has steadily increased during this war. However, crude oil dropped to less than $100 per barrel when the ceasefire agreement was announced. That’s good news for airline companies, as it allows them to purchase fuel for their flights at lower prices, which in turn leads to larger profits per flight.
According to President Trump, an agreement between the U.S. and Iran has been reached to reopen the Strait of Hormuz. This is part of the ceasefire agreement, as Trump claims the two-week period without attacks will allow the U.S. and Iran to complete the steps needed to reopen the shipping lane. This ceasefire agreement could also lead to an end of the war in Iran, so long as negotiations go well.
Ryanair Stock Movement Today
Ryanair stock was up 12.99% in pre-market trading on Wednesday, following a slight dip yesterday. The shares were down 18.88% year-to-date but were still up 32.81% over the past 12 months.
Trading activity today saw some 36,000 shares of RYAAY stock change hands, compared to a three-month average daily trading volume of about 1.64 million shares.
Is Ryanair Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Ryanair is Strong Buy, based on three Buy and one Hold ratings over the past three months. With that comes an average RYAAY stock price target of $59.02, representing a potential 1.25% upside for the shares.
