Alaska Air Group (NYSE:ALK) Shares Down 4.9% - Time to Sell?

Key Points

• Alaska Air Group's stock dropped 4.9% during mid-day trading, reaching a low of $60.54, with a trading volume significantly lower than its average.
• Multiple equities research analysts have issued positive ratings and raised their price targets for the stock, with the consensus rating currently at "Buy" and an average target price of $71.15.
• Despite recent stock declines, Alaska Air Group reported strong quarterly earnings, beating analyst expectations with a profit of $1.78 EPS against a consensus estimate of $1.56.

Alaska Air Group, Inc. (NYSE:ALK - Get Free Report)'s stock price was down 4.9% during mid-day trading on Monday . The company traded as low as $60.54 and last traded at $60.24. Approximately 1,643,187 shares traded hands during trading, a decline of 47% from the average daily volume of 3,084,006 shares. The stock had previously closed at $63.37.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on ALK shares. Raymond James Financial raised shares of Alaska Air Group from a "market perform" rating to an "outperform" rating and set a $70.00 target price for the company in a research note on Monday, August 25th. Susquehanna lifted their target price on shares of Alaska Air Group from $50.00 to $60.00 and gave the company a "positive" rating in a research note on Tuesday, August 5th. JPMorgan Chase & Co. lifted their target price on shares of Alaska Air Group from $73.00 to $96.00 and gave the company an "overweight" rating in a research note on Friday. UBS Group raised shares of Alaska Air Group from a "neutral" rating to a "buy" rating and lifted their target price for the company from $56.00 to $90.00 in a research note on Friday. Finally, Barclays lifted their target price on shares of Alaska Air Group from $55.00 to $60.00 and gave the company an "overweight" rating in a research note on Thursday, July 10th. Thirteen investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average price target of $71.15.

Alaska Air Group Stock Down 6.7%

The firm has a market cap of $6.82 billion, a P/E ratio of 24.04, a P/E/G ratio of 0.69 and a beta of 1.45. The business's fifty day moving average price is $56.32 and its two-hundred day moving average price is $52.52. 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 (NYSE:ALK - Get Free Report) last released its quarterly earnings results on Wednesday, July 23rd. The transportation company reported $1.78 earnings per share for the quarter, beating analysts' consensus estimates of $1.56 by $0.22. The business had revenue of $3.70 billion for the quarter, compared to the consensus estimate of $3.65 billion. Alaska Air Group had a net margin of 2.33% and a return on equity of 12.62%. Alaska Air Group's revenue for the quarter was up 27.9% on a year-over-year basis. During the same quarter last year, the firm earned $2.55 EPS. Alaska Air Group has set its Q3 2025 guidance at 1.000-1.400 EPS. FY 2025 guidance at 3.250- EPS. As a group, equities research analysts anticipate that Alaska Air Group, Inc. will post 6.03 EPS for the current year.

Insider Buying and Selling

In related news, SVP Kyle B. Levine sold 5,914 shares of Alaska Air Group stock in a transaction on Monday, August 18th. The shares were sold at an average price of $57.75, for a total value of $341,533.50. Following the transaction, the senior vice president owned 20,917 shares in the company, valued at $1,207,956.75. This trade represents a 22.04% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Andrew R. Harrison sold 7,600 shares of Alaska Air Group stock in a transaction on Monday, July 28th. The stock was sold at an average price of $53.22, for a total transaction of $404,472.00. Following the completion of the transaction, the executive vice president owned 18,930 shares in the company, valued at $1,007,454.60. This trade represents a 28.65% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 18,514 shares of company stock worth $1,031,306 in the last quarter. 1.00% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in ALK. Goldman Sachs Group Inc. raised its position in shares of Alaska Air Group by 249.1% during the first quarter. Goldman Sachs Group Inc. now owns 2,638,464 shares of the transportation company's stock valued at $129,865,000 after buying an additional 1,882,598 shares during the last quarter. William Blair Investment Management LLC raised its position in shares of Alaska Air Group by 13,557.0% during the second quarter. William Blair Investment Management LLC now owns 625,764 shares of the transportation company's stock valued at $30,963,000 after buying an additional 621,182 shares during the last quarter. Assenagon Asset Management S.A. raised its position in shares of Alaska Air Group by 2,880.4% during the second quarter. Assenagon Asset Management S.A. now owns 624,035 shares of the transportation company's stock valued at $30,877,000 after buying an additional 603,097 shares during the last quarter. Frontier Capital Management Co. LLC raised its position in shares of Alaska Air Group by 78.4% during the second quarter. Frontier Capital Management Co. LLC now owns 1,009,317 shares of the transportation company's stock valued at $49,941,000 after buying an additional 443,572 shares during the last quarter. Finally, Norges Bank acquired a new stake in shares of Alaska Air Group during the 2nd quarter valued at about $21,485,000. Institutional investors and hedge funds own 81.90% of the company's stock.

About Alaska Air Group

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.

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