Alaska Air Group (NYSE:ALK) Rating Increased to Buy at UBS Group

Key Points

• Alaska Air Group has been upgraded from a "neutral" to a "buy" rating by UBS Group, with a new price target of $90.00, indicating a potential upside of 41.04% from its current stock price.
• Thirteen research analysts have given Alaska Air Group a consensus rating of "Buy," with a combined average price target of $71.15.
• The company reported $1.78 earnings per share for the last quarter, surpassing analysts' expectations, alongside a revenue increase of 27.9% year-over-year.

UBS Group upgraded shares of Alaska Air Group (NYSE:ALK - Free Report) from a neutral rating to a buy rating in a research note published on Friday morning, Marketbeat Ratings reports. UBS Group currently has $90.00 price objective on the transportation company's stock, up from their prior price objective of $56.00.

A number of other research firms have also recently commented on ALK. JPMorgan Chase & Co. lifted their target price on Alaska Air Group from $73.00 to $96.00 and gave the stock an "overweight" rating in a research note on Friday. Raymond James Financial upgraded Alaska Air Group from a "market perform" rating to an "outperform" rating and set a $70.00 target price on the stock in a research note on Monday, August 25th. Susquehanna lifted their target price 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. Finally, Barclays lifted their target price 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 research analysts have rated the stock with a Buy rating, According to data from MarketBeat, the company has a consensus rating of "Buy" and a consensus price target of $71.15.

Alaska Air Group Stock Down 0.7%

NYSE:ALK traded down $0.46 during trading hours on Friday, hitting $63.40. 2,724,943 shares of the company traded hands, compared to its average volume of 2,283,586. The company has a market cap of $7.31 billion, a PE ratio of 25.77, a PEG ratio of 0.69 and a beta of 1.45. Alaska Air Group has a one year low of $39.10 and a one year high of $78.08. The company has a quick ratio of 0.49, a current ratio of 0.52 and a debt-to-equity ratio of 1.14. The firm's 50-day simple moving average is $56.32 and its 200-day simple moving average is $52.52.

Alaska Air Group (NYSE:ALK - Get Free Report) last released its earnings results on Wednesday, July 23rd. The transportation company reported $1.78 EPS for the quarter, topping analysts' consensus estimates of $1.56 by $0.22. The company 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 period 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. Equities analysts predict that Alaska Air Group will post 6.03 earnings per share for the current year.

Insider Activity at Alaska Air Group

In related news, 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 value of $341,533.50. Following the sale, the senior vice president directly owned 20,917 shares in the company, valued at approximately $1,207,956.75. The trade was a 22.04% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, 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 value of $404,472.00. Following the completion of the sale, the executive vice president owned 18,930 shares in the company, valued at $1,007,454.60. This represents a 28.65% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 18,514 shares of company stock worth $1,031,306. Company insiders own 0.92% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. American Century Companies Inc. grew its holdings in Alaska Air Group by 1.3% during the 2nd quarter. American Century Companies Inc. now owns 3,266,619 shares of the transportation company's stock valued at $161,632,000 after buying an additional 42,454 shares in the last quarter. Goldman Sachs Group Inc. grew its holdings 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 valued at $129,865,000 after buying an additional 1,882,598 shares in the last quarter. Geode Capital Management LLC grew its holdings in Alaska Air Group by 3.6% during the 2nd quarter. Geode Capital Management LLC now owns 2,215,697 shares of the transportation company's stock valued at $109,657,000 after buying an additional 77,531 shares in the last quarter. Massachusetts Financial Services Co. MA grew its holdings in Alaska Air Group by 20.2% during the 1st quarter. Massachusetts Financial Services Co. MA now owns 1,910,364 shares of the transportation company's stock valued at $94,028,000 after buying an additional 321,505 shares in the last quarter. Finally, AQR Capital Management LLC grew its holdings in Alaska Air Group by 10.1% during the 2nd quarter. AQR Capital Management LLC now owns 1,456,129 shares of the transportation company's stock valued at $71,809,000 after buying an additional 134,141 shares in the last quarter. Hedge funds and other institutional investors 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.