Alaska Air Group (NYSE:ALK) Shares Gap Up on Analyst Upgrade

Key Points

• Alaska Air Group's stock price gapped up from $63.86 to $65.80 following an upgrade from UBS Group, which raised its price target from $56.00 to $90.00.
• Thirteen equities research analysts currently have a Buy rating on Alaska Air Group, with an average price target of $71.15.
• Insider selling occurred with CFO Shane R. Tackett and SVP Kyle B. Levine, collectively selling a total of approximately $626,833 in shares, indicating a decline in their ownership positions.

Alaska Air Group, Inc. (NYSE:ALK - Get Free Report)'s stock price gapped up prior to trading on Friday after UBS Group upgraded the stock from a neutral rating to a buy rating. The stock had previously closed at $63.86, but opened at $65.80. UBS Group now has a $90.00 price target on the stock, up from their previous price target of $56.00. Alaska Air Group shares last traded at $65.11, with a volume of 385,960 shares changing hands.

Other equities analysts have also recently issued reports about the stock. Raymond James Financial raised shares of Alaska Air Group from a "market perform" rating to an "outperform" rating and set a $70.00 price objective for the company in a research report on Monday, August 25th. Barclays increased their price objective on shares of Alaska Air Group from $55.00 to $60.00 and gave the company an "overweight" rating in a report on Thursday, July 10th. Susquehanna raised their target price on shares of Alaska Air Group from $50.00 to $60.00 and gave the stock a "positive" rating in a report on Tuesday, August 5th. Finally, JPMorgan Chase & Co. raised their target price on shares of Alaska Air Group from $73.00 to $96.00 and gave the stock an "overweight" rating in a report on Friday, September 12th. Thirteen research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the company presently has a consensus rating of "Buy" and an average target price of $71.92.

Insider Transactions at Alaska Air Group

In related news, SVP Kyle B. Levine sold 5,914 shares of the business's stock in a transaction that occurred on Monday, August 18th. The shares were sold at an average price of $57.75, for a total transaction of $341,533.50. Following the completion of the sale, the senior vice president directly owned 20,917 shares of the company's stock, valued at $1,207,956.75. The trade was a 22.04% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CFO Shane R. Tackett sold 5,000 shares of the firm's stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $57.06, for a total transaction of $285,300.00. Following the sale, the chief financial officer owned 43,335 shares in the company, valued at approximately $2,472,695.10. The trade was a 10.34% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 18,514 shares of company stock worth $1,031,306. Company insiders own 0.92% of the company's stock.

Hedge Funds Weigh In On Alaska Air Group

A number of hedge funds have recently bought and sold shares of ALK. Brooklyn Investment Group increased its position in Alaska Air Group by 41.1% during the first quarter. Brooklyn Investment Group now owns 632 shares of the transportation company's stock worth $31,000 after acquiring an additional 184 shares during the period. MAI Capital Management grew its stake in Alaska Air Group by 80.5% during the second quarter. MAI Capital Management now owns 628 shares of the transportation company's stock worth $31,000 after buying an additional 280 shares in the last quarter. Perkins Coie Trust Co grew its stake in Alaska Air Group by 125.7% during the first quarter. Perkins Coie Trust Co now owns 677 shares of the transportation company's stock worth $33,000 after buying an additional 377 shares in the last quarter. Wood Tarver Financial Group LLC acquired a new stake in Alaska Air Group during the fourth quarter worth about $38,000. Finally, Rexford Capital Inc. acquired a new stake in shares of Alaska Air Group in the 2nd quarter valued at approximately $49,000. 81.90% of the stock is owned by institutional investors.

Alaska Air Group Trading Up 3.9%

The firm's 50-day moving average is $56.64 and its 200 day moving average is $52.46. The firm has a market capitalization of $6.90 billion, a price-to-earnings ratio of 24.36, a P/E/G ratio of 0.64 and a beta of 1.45. 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 data on Wednesday, July 23rd. The transportation company reported $1.78 earnings per share for the quarter, beating the consensus estimate of $1.56 by $0.22. The company had revenue of $3.70 billion during the quarter, compared to analyst estimates 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% compared to the same quarter last year. During the same quarter in the previous year, the business posted $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. On average, equities analysts predict that Alaska Air Group, Inc. will post 6.03 earnings per share for the current fiscal year.

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.