Alaska Air Group (NYSE:ALK) Shares Gap Up - Time to Buy?

Key Points

• Alaska Air Group's stock price gapped up from $49.14 to $51.70, closing at $50.90 with a trading volume of 738,562 shares.
• Several research firms have upgraded their ratings for ALK, with target prices ranging from $58.00 to $96.00, reflecting a consensus rating of "Moderate Buy" and an average target price of $71.62.
• The company reported a quarterly earnings per share (EPS) of $1.78, exceeding expectations, and revealed a year-over-year revenue increase of 27.9% to $3.70 billion.

Alaska Air Group, Inc. (NYSE:ALK - Get Free Report)'s stock price gapped up before the market opened on Thursday . The stock had previously closed at $49.14, but opened at $51.70. Alaska Air Group shares last traded at $50.90, with a volume of 738,562 shares trading hands.

Analyst Upgrades and Downgrades

Several research firms have weighed in on ALK. Raymond James Financial set a $68.00 target price on shares of Alaska Air Group and gave the company an "outperform" rating in a report on Wednesday, October 1st. UBS Group raised shares of Alaska Air Group from a "neutral" rating to a "buy" rating and raised their price target for the stock from $56.00 to $90.00 in a research note on Friday, September 12th. Susquehanna set a $58.00 price target on shares of Alaska Air Group and gave the stock a "positive" rating in a research note on Friday, October 3rd. JPMorgan Chase & Co. raised their price target on shares of Alaska Air Group from $73.00 to $96.00 and gave the stock an "overweight" rating in a research note on Friday, September 12th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Alaska Air Group in a research note on Wednesday. Thirteen research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $71.62.

Alaska Air Group Price Performance

The company's 50-day moving average is $56.39 and its 200-day moving average is $51.90. The company has a debt-to-equity ratio of 1.14, a current ratio of 0.52 and a quick ratio of 0.49. The firm has a market capitalization of $5.67 billion, a price-to-earnings ratio of 19.98, a PEG ratio of 0.60 and a beta of 1.40.

Alaska Air Group (NYSE:ALK - Get Free Report) last released its earnings results on Wednesday, July 23rd. The transportation company reported $1.78 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.56 by $0.22. Alaska Air Group had a net margin of 2.33% and a return on equity of 12.62%. The business had revenue of $3.70 billion for the quarter, compared to analysts' expectations of $3.65 billion. During the same period last year, the company earned $2.55 earnings per share. The company's quarterly revenue was up 27.9% on a year-over-year basis. Alaska Air Group has set its Q3 2025 guidance at 1.000-1.400 EPS. FY 2025 guidance at 3.250- EPS. On average, research analysts expect that Alaska Air Group, Inc. will post 6.03 earnings per share for the current year.

Insider Activity at Alaska Air Group

In related news, EVP Andrew R. Harrison sold 7,600 shares of the firm's stock in a transaction that occurred on Monday, July 28th. The shares were sold at an average price of $53.22, for a total value of $404,472.00. Following the transaction, the executive vice president owned 18,930 shares in the company, valued at approximately $1,007,454.60. This trade represents a 28.65% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Shane R. Tackett sold 5,000 shares of the firm's stock in a transaction that occurred on Wednesday, August 13th. The shares were sold at an average price of $57.06, for a total transaction of $285,300.00. Following the completion of the transaction, the chief financial officer owned 43,335 shares in the company, valued at $2,472,695.10. The trade was a 10.34% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 18,514 shares of company stock worth $1,031,306. Company insiders own 1.00% of the company's stock.

Institutional Trading of Alaska Air Group

Hedge funds have recently made changes to their positions in the company. Oak Thistle LLC bought a new stake in shares of Alaska Air Group in the third quarter worth $1,636,000. GAMMA Investing LLC increased its stake in shares of Alaska Air Group by 6.0% in the third quarter. GAMMA Investing LLC now owns 4,387 shares of the transportation company's stock worth $218,000 after buying an additional 249 shares during the last quarter. Texas Permanent School Fund Corp increased its stake in shares of Alaska Air Group by 25.1% in the second quarter. Texas Permanent School Fund Corp now owns 86,413 shares of the transportation company's stock worth $4,276,000 after buying an additional 17,359 shares during the last quarter. Valeo Financial Advisors LLC increased its stake in shares of Alaska Air Group by 9.0% in the second quarter. Valeo Financial Advisors LLC now owns 8,523 shares of the transportation company's stock worth $422,000 after buying an additional 702 shares during the last quarter. Finally, Osaic Holdings Inc. increased its stake in shares of Alaska Air Group by 8.6% in the second quarter. Osaic Holdings Inc. now owns 15,565 shares of the transportation company's stock worth $770,000 after buying an additional 1,239 shares during the last quarter. Hedge funds and other institutional investors own 81.90% of the company's stock.

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.

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