Alaska Air Group (NYSE:ALK) Trading Up 7.7% - Still a Buy?

Key Points

• Alaska Air Group's stock price surged 7.7%, reaching a high of $55.10, despite a significant drop in trading volume compared to the average.
• Analysts have raised their price targets for Alaska Air Group, with a consensus rating of "Moderate Buy" and an average price target of $67.83.
• The company reported strong quarterly earnings with an EPS of $1.78, exceeding expectations, and a year-over-year revenue increase of 27.9%.

Alaska Air Group, Inc. (NYSE:ALK - Get Free Report)'s share price was up 7.7% during trading on Tuesday . The company traded as high as $54.15 and last traded at $55.10. Approximately 119,602 shares changed hands during trading, a decline of 96% from the average daily volume of 3,180,799 shares. The stock had previously closed at $51.14.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on ALK shares. TD Cowen boosted their price objective on Alaska Air Group from $54.00 to $62.00 and gave the stock a "buy" rating in a research report on Friday, April 25th. Barclays boosted their price objective on Alaska Air Group from $55.00 to $60.00 and gave the stock an "overweight" rating in a research report on Thursday, July 10th. Susquehanna boosted their price objective on Alaska Air Group from $50.00 to $60.00 and gave the stock a "positive" rating in a research report on Tuesday, August 5th. Finally, UBS Group boosted their price objective on Alaska Air Group from $49.00 to $56.00 and gave the stock a "neutral" rating in a research report on Friday, July 25th. One investment analyst has rated the stock with a hold rating and eleven have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, Alaska Air Group presently has a consensus rating of "Moderate Buy" and an average price target of $67.83.

Alaska Air Group Price Performance

The company has a current ratio of 0.52, a quick ratio of 0.49 and a debt-to-equity ratio of 1.14. The business has a 50-day moving average price of $51.05 and a 200 day moving average price of $54.72. The stock has a market cap of $6.38 billion, a PE ratio of 22.48, a PEG ratio of 0.51 and a beta of 1.45.

Alaska Air Group (NYSE:ALK - Get Free Report) last issued its quarterly earnings results on Wednesday, July 23rd. The transportation company reported $1.78 EPS for the quarter, beating analysts' consensus estimates of $1.56 by $0.22. The firm had revenue of $3.70 billion for the quarter, compared to analysts' expectations of $3.65 billion. Alaska Air Group had a return on equity of 12.62% and a net margin of 2.33%. The business's revenue for the quarter was up 27.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.55 EPS. As a group, research analysts forecast that Alaska Air Group, Inc. will post 6.03 earnings per share for the current fiscal year.

Insider Transactions at Alaska Air Group

In related news, VP Emily Halverson sold 2,946 shares of the stock in a transaction dated Thursday, June 5th. The stock was sold at an average price of $51.34, for a total transaction of $151,247.64. Following the sale, the vice president owned 8,253 shares of the company's stock, valued at approximately $423,709.02. This represents a 26.31% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Andrew R. Harrison sold 7,600 shares of the stock in a transaction dated Monday, July 28th. The stock was sold at an average price of $53.22, for a total value of $404,472.00. Following the sale, the executive vice president directly 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 a total of 18,046 shares of company stock worth $957,045 in the last three months. 0.92% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Alaska Air Group

A number of institutional investors have recently added to or reduced their stakes in ALK. Goldman Sachs Group Inc. increased its stake in Alaska Air Group by 249.1% in the 1st quarter. Goldman Sachs Group Inc. now owns 2,638,464 shares of the transportation company's stock worth $129,865,000 after acquiring an additional 1,882,598 shares during the last quarter. Point72 Asset Management L.P. lifted its stake in Alaska Air Group by 134.0% during the fourth quarter. Point72 Asset Management L.P. now owns 2,134,221 shares of the transportation company's stock worth $138,191,000 after purchasing an additional 1,222,277 shares during the last quarter. Adage Capital Partners GP L.L.C. increased its position in shares of Alaska Air Group by 4,615.3% during the 4th quarter. Adage Capital Partners GP L.L.C. now owns 943,064 shares of the transportation company's stock valued at $61,063,000 after purchasing an additional 923,064 shares during the last quarter. Candlestick Capital Management LP bought a new position in shares of Alaska Air Group during the 4th quarter valued at about $51,306,000. Finally, Interval Partners LP bought a new position in shares of Alaska Air Group during the 4th quarter valued at about $50,507,000. 81.90% of the stock is currently 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.