Alaska Air Group (NYSE:ALK) Trading Down 5.4% - What's Next?

Key Points

• Alaska Air Group's stock price dropped by 5.4% to $54.13, significantly lower than the previous close of $57.25, with trading volume declining by 30% to 2,185,110 shares.
• Despite the recent decline in share price, several brokerages have raised their price targets, with JPMorgan Chase increasing their target from $73.00 to $96.00 and Barclays from $55.00 to $60.00, indicating a consensus rating of "Buy."
• Alaska Air Group reported earnings of $1.78 per share for the last quarter, beating estimates and marking a 27.9% increase in revenue year-over-year, showcasing strong financial performance.

Shares of Alaska Air Group, Inc. (NYSE:ALK - Get Free Report) traded down 5.4% on Monday . The stock traded as low as $54.22 and last traded at $54.13. 2,185,110 shares changed hands during mid-day trading, a decline of 30% from the average session volume of 3,114,378 shares. The stock had previously closed at $57.25.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on the company. Susquehanna upped their price objective on Alaska Air Group from $50.00 to $60.00 and gave the stock a "positive" rating in a research note on Tuesday, August 5th. Evercore ISI decreased their price objective on Alaska Air Group from $70.00 to $65.00 and set an "outperform" rating for the company in a research note on Tuesday, September 16th. Raymond James Financial upgraded 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 note on Monday, August 25th. JPMorgan Chase & Co. upped their price objective on 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, Barclays upped their price objective on Alaska Air Group from $55.00 to $60.00 and gave the stock an "overweight" rating in a research note on Thursday, July 10th. Thirteen analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the stock has a consensus rating of "Buy" and a consensus target price of $71.92.

Alaska Air Group Stock Down 0.9%

The firm has a market capitalization of $6.26 billion, a P/E ratio of 22.10, a PEG ratio of 0.62 and a beta of 1.45. The firm's 50-day moving average is $57.01 and its 200 day moving average is $52.16. The company has a debt-to-equity ratio of 1.14, a quick ratio of 0.49 and a current ratio of 0.52.

Alaska Air Group (NYSE:ALK - Get Free Report) last posted its quarterly earnings data on Wednesday, July 23rd. The transportation company reported $1.78 EPS for the quarter, beating the consensus estimate of $1.56 by $0.22. The business had revenue of $3.70 billion for the quarter, compared to analysts' expectations of $3.65 billion. Alaska Air Group had a net margin of 2.33% and a return on equity of 12.62%. The firm's revenue was up 27.9% compared to the same quarter last year. During the same period in the previous year, the firm 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. As a group, equities research analysts predict that Alaska Air Group, Inc. will post 6.03 EPS for the current fiscal year.

Insider Activity at Alaska Air Group

In other Alaska Air Group news, EVP Andrew R. Harrison sold 7,600 shares of the business's stock in a transaction dated Monday, July 28th. The shares were sold at an average price of $53.22, for a total transaction of $404,472.00. Following the sale, the executive vice president directly owned 18,930 shares of the company's stock, valued at $1,007,454.60. The trade was a 28.65% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, SVP Kyle B. Levine sold 5,914 shares of the business's stock in a transaction dated Monday, August 18th. The stock was sold at an average price of $57.75, for a total transaction of $341,533.50. Following the sale, the senior vice president directly owned 20,917 shares in the company, valued at $1,207,956.75. This trade represents a 22.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 18,514 shares of company stock valued at $1,031,306. 0.92% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Alaska Air Group

Several institutional investors and hedge funds have recently added to or reduced their stakes in ALK. Goldman Sachs Group Inc. lifted its position in Alaska Air Group by 249.1% during the 1st quarter. Goldman Sachs Group Inc. now owns 2,638,464 shares of the transportation company's stock worth $129,865,000 after buying an additional 1,882,598 shares in the last quarter. William Blair Investment Management LLC lifted its position in Alaska Air Group by 13,557.0% during the 2nd quarter. William Blair Investment Management LLC now owns 625,764 shares of the transportation company's stock worth $30,963,000 after buying an additional 621,182 shares in the last quarter. Assenagon Asset Management S.A. lifted its position in Alaska Air Group by 2,880.4% during the 2nd quarter. Assenagon Asset Management S.A. now owns 624,035 shares of the transportation company's stock worth $30,877,000 after buying an additional 603,097 shares in the last quarter. Frontier Capital Management Co. LLC lifted its position in Alaska Air Group by 78.4% during the 2nd quarter. Frontier Capital Management Co. LLC now owns 1,009,317 shares of the transportation company's stock worth $49,941,000 after buying an additional 443,572 shares in the last quarter. Finally, Norges Bank bought a new stake in Alaska Air Group during the 2nd quarter worth about $21,485,000. 81.90% of the stock is owned by institutional investors.

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.