Alaska Air Group (NYSE:ALK) Issues Quarterly Earnings Results, Misses Expectations By $0.06 EPS

Key Points

• Alaska Air Group reported quarterly earnings of $1.05 per share, falling short of analysts' expectations of $1.32, with a net margin of 2.33% and a return on equity of 12.62%.
• The company's stock price decreased to $46.62, with analysts setting a consensus price target of $71.62 and a rating of "Moderate Buy," reflecting varied perceptions of the company's market position.
• Recent insider transactions showed employees, including the CFO, liquidating shares, with insider ownership now at 1.00% of the company, potentially signaling concerns about stock performance.

Alaska Air Group (NYSE:ALK - Get Free Report) posted its quarterly earnings data on Thursday. The transportation company reported $1.05 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.11 by ($0.06), Zacks reports. The business had revenue of $3.77 billion for the quarter, compared to the consensus estimate of $3.75 billion. Alaska Air Group had a net margin of 2.33% and a return on equity of 12.62%.

Alaska Air Group Stock Down 2.2%

ALK opened at $46.62 on Friday. The company has a market cap of $5.38 billion, a P/E ratio of 18.95, a P/E/G ratio of 0.75 and a beta of 1.40. The business's 50-day moving average price is $55.15 and its 200-day moving average price is $51.78. The company has a current ratio of 0.52, a quick ratio of 0.49 and a debt-to-equity ratio of 1.14. Alaska Air Group has a 12 month low of $39.79 and a 12 month high of $78.08.

Insider Buying and Selling

In related news, CFO Shane R. Tackett sold 5,000 shares of the firm's stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $57.06, for a total value of $285,300.00. Following the sale, the chief financial officer directly owned 43,335 shares of the company's stock, valued at $2,472,695.10. This trade represents a 10.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, SVP Kyle B. Levine sold 5,914 shares of the firm's stock in a transaction dated Monday, August 18th. The stock was sold at an average price of $57.75, for a total value of $341,533.50. Following the completion of the sale, the senior vice president directly owned 20,917 shares in the company, valued at $1,207,956.75. The trade was a 22.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 18,514 shares of company stock valued at $1,031,306 over the last ninety days. 1.00% of the stock is owned by insiders.

Institutional Trading of Alaska Air Group

Large investors have recently bought and sold shares of the company. Brighton Jones LLC boosted its position in Alaska Air Group by 2,046.4% during the 4th quarter. Brighton Jones LLC now owns 96,932 shares of the transportation company's stock valued at $6,276,000 after acquiring an additional 92,416 shares in the last quarter. BI Asset Management Fondsmaeglerselskab A S boosted its position in Alaska Air Group by 5,542.9% during the 2nd quarter. BI Asset Management Fondsmaeglerselskab A S now owns 113,366 shares of the transportation company's stock valued at $5,609,000 after acquiring an additional 111,357 shares in the last quarter. BNP Paribas Financial Markets boosted its position in Alaska Air Group by 158.5% during the 2nd quarter. BNP Paribas Financial Markets now owns 65,658 shares of the transportation company's stock valued at $3,249,000 after acquiring an additional 40,258 shares in the last quarter. Treasurer of the State of North Carolina boosted its position in Alaska Air Group by 1.8% during the 2nd quarter. Treasurer of the State of North Carolina now owns 57,196 shares of the transportation company's stock valued at $2,830,000 after acquiring an additional 1,006 shares in the last quarter. Finally, Intech Investment Management LLC bought a new stake in Alaska Air Group during the 1st quarter valued at approximately $1,318,000. 81.90% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several equities research analysts recently issued reports on the company. Weiss Ratings reissued a "hold (c)" rating on shares of Alaska Air Group in a research note on Wednesday, October 8th. UBS Group reissued a "buy" rating and set a $90.00 price objective on shares of Alaska Air Group in a research note on Tuesday. JPMorgan Chase & Co. raised their price target on Alaska Air Group from $73.00 to $96.00 and gave the company an "overweight" rating in a research report on Friday, September 12th. Barclays raised their price target on Alaska Air Group from $55.00 to $60.00 and gave the company an "overweight" rating in a research report on Thursday, July 10th. Finally, Susquehanna set a $58.00 price target on Alaska Air Group and gave the company a "positive" rating in a research report on Friday, October 3rd. Thirteen investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Alaska Air Group currently has an average rating of "Moderate Buy" and an average price target of $71.62.

Alaska Air Group Company Profile

Alaska Air Group, Inc, through its subsidiaries, operates airlines. It operates through three segments: Mainline, Regional, and Horizon. The company offers scheduled air transportation services on Boeing jet aircraft for passengers and cargo in the United States, and in parts of Canada, Mexico, Costa Rica, Belize, Guatemala, and the Bahamas; and for passengers across a shorter distance network within the United States, Canada, and Mexico.