Alaska Air Group (NYSE:ALK) Upgraded to "Hold" at Zacks Research

Key Points

• Zacks Research upgraded Alaska Air Group from "strong sell" to "hold" while issuing sharply lower near‑term EPS revisions (FY2026 EPS -$2.73) but projecting a recovery in FY2027–FY2028 (FY2028 EPS $9.61).
• The company priced a $500M private senior note offering at a steep 6.5% coupon and arranged a loyalty‑program‑backed loan to bolster liquidity amid rising jet fuel costs, signaling higher interest expense and near‑term margin pressure.
• Despite a recent quarterly EPS miss and insider selling, analysts maintain a "Moderate Buy" consensus with a $61.85 average target while the stock traded around $40.50, suggesting significant implied upside to the consensus target.

Alaska Air Group (NYSE:ALK - Get Free Report) was upgraded by analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research report issued to clients and investors on Wednesday,Zacks.com reports. Zacks Research also issued estimates for Alaska Air Group's Q2 2026 earnings at ($1.00) EPS, Q3 2026 earnings at $0.36 EPS, Q4 2026 earnings at ($0.42) EPS, FY2026 earnings at ($2.73) EPS, Q2 2027 earnings at $1.66 EPS, Q3 2027 earnings at $2.30 EPS, Q4 2027 earnings at $1.49 EPS, FY2027 earnings at $6.19 EPS, Q1 2028 earnings at $1.03 EPS and FY2028 earnings at $9.61 EPS.

A number of other equities analysts have also recently issued reports on the stock. Evercore set a $60.00 target price on shares of Alaska Air Group in a report on Friday, April 17th. Weiss Ratings raised shares of Alaska Air Group from a "sell (d+)" rating to a "hold (c-)" rating in a report on Monday, March 9th. Bank of America cut their target price on shares of Alaska Air Group from $70.00 to $60.00 and set a "buy" rating on the stock in a report on Wednesday, April 1st. BMO Capital Markets raised their target price on shares of Alaska Air Group from $42.50 to $55.00 and gave the stock an "outperform" rating in a report on Wednesday, April 22nd. Finally, Morgan Stanley cut their target price on shares of Alaska Air Group from $80.00 to $78.00 and set an "overweight" rating on the stock in a report on Wednesday, April 22nd. Eleven equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Alaska Air Group has a consensus rating of "Moderate Buy" and a consensus target price of $61.85.

Alaska Air Group Stock Down 0.0%

NYSE:ALK opened at $40.50 on Wednesday. The company has a debt-to-equity ratio of 1.29, a quick ratio of 0.39 and a current ratio of 0.43. The stock has a 50-day simple moving average of $41.12 and a 200 day simple moving average of $45.91. Alaska Air Group has a one year low of $33.03 and a one year high of $65.88. The company has a market capitalization of $4.59 billion, a price-to-earnings ratio of 76.41 and a beta of 1.25.

Alaska Air Group (NYSE:ALK - Get Free Report) last issued its earnings results on Monday, April 20th. The transportation company reported ($1.68) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($1.61) by ($0.07). Alaska Air Group had a return on equity of 4.96% and a net margin of 0.51%.The business had revenue of $3.30 billion during the quarter, compared to the consensus estimate of $3.31 billion. During the same period in the prior year, the business earned ($0.77) EPS. The business's revenue was up 5.2% on a year-over-year basis. Alaska Air Group has set its Q2 2026 guidance at -1.000--1.000 EPS. Sell-side analysts predict that Alaska Air Group will post -0.95 EPS for the current fiscal year.

Insider Activity at Alaska Air Group

In related news, CFO Shane R. Tackett sold 24,000 shares of the firm's stock in a transaction that occurred on Wednesday, February 18th. The shares were sold at an average price of $57.15, for a total transaction of $1,371,600.00. Following the transaction, the chief financial officer owned 43,377 shares in the company, valued at $2,478,995.55. This trade represents a 35.62% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Andrew R. Harrison sold 14,500 shares of the firm's stock in a transaction that occurred on Friday, February 13th. The shares were sold at an average price of $54.81, for a total transaction of $794,745.00. Following the transaction, the executive vice president owned 20,195 shares in the company, valued at $1,106,887.95. This represents a 41.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 46,945 shares of company stock worth $2,654,569 over the last quarter. 1.00% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. SBI Securities Co. Ltd. grew its position in Alaska Air Group by 30.4% in the fourth quarter. SBI Securities Co. Ltd. now owns 910 shares of the transportation company's stock worth $46,000 after buying an additional 212 shares during the last quarter. Northwestern Mutual Investment Management Company LLC grew its position in Alaska Air Group by 1.0% in the fourth quarter. Northwestern Mutual Investment Management Company LLC now owns 25,951 shares of the transportation company's stock worth $1,305,000 after buying an additional 249 shares during the last quarter. Smartleaf Asset Management LLC grew its position in Alaska Air Group by 43.2% in the third quarter. Smartleaf Asset Management LLC now owns 838 shares of the transportation company's stock worth $42,000 after buying an additional 253 shares during the last quarter. Great Lakes Advisors LLC grew its position in Alaska Air Group by 0.7% in the third quarter. Great Lakes Advisors LLC now owns 40,564 shares of the transportation company's stock worth $2,019,000 after buying an additional 277 shares during the last quarter. Finally, Bradley Foster & Sargent Inc. CT grew its position in Alaska Air Group by 2.0% in the fourth quarter. Bradley Foster & Sargent Inc. CT now owns 14,647 shares of the transportation company's stock worth $737,000 after buying an additional 281 shares during the last quarter. Institutional investors and hedge funds own 81.90% of the company's stock.

Alaska Air Group News Summary

Here are the key news stories impacting Alaska Air Group this week:

• Positive Sentiment: Privium (an investment fund) disclosed a meaningful buy of about $15.97M in ALK, signaling outside investor interest in the stock. Privium Fund Buys $15.97 Million Stake in Alaska Air Amid Fuel Cost Crisis
• Positive Sentiment: Alaska Airlines announced four new nonstop routes (three from Santa Rosa and a return to Long Beach), a modest revenue/market-share positive that supports medium‑term growth in California markets. California dreaming - Alaska Airlines expands route network from Santa Rosa and returns to Long Beach with connection to Seattle
• Neutral Sentiment: ALK has attracted heightened attention on investor sites (more views/interest), which can amplify volatility but is not itself a directional fundamental change. Alaska Air Group, Inc. (ALK) is Attracting Investor Attention: Here is What You Should Know
• Negative Sentiment: Alaska priced a $500M private offering of senior notes at a steep 6.5% coupon and structured a loyalty‑program‑backed loan — a clear sign management is prioritizing liquidity as jet fuel costs rise; higher-cost debt increases interest expense and signals near-term margin pressure. Alaska Air Prices New Notes and Loyalty-Backed Loan
• Negative Sentiment: Company launched/announced the $500M debt offering explicitly to bolster liquidity as an Iran‑related spike in jet fuel prices erodes margins — industry fuel-cost risk remains elevated. Alaska Air launches $500 million debt offering as Iran war drives up fuel costs
• Negative Sentiment: Analysts at Zacks Research issued large downward revisions and a "Strong Sell" stance, cutting Q2/FY2026 EPS materially (example: Q2 to roughly ($1.00) and FY2026 sharply lower), increasing downside risk to near‑term expectations.
• Negative Sentiment: Industry headwinds: major carriers have already cut many summer flights as jet fuel prices spike — a sectorwide pressure that can hit revenue and unit margins for Alaska. These airlines have cut the most flights this summer as jet fuel prices skyrocket

Alaska Air Group Company Profile

Alaska Air Group is a publicly traded holding company headquartered in Seattle, Washington, that operates two main airlines—Alaska Airlines and Horizon Air. Through these carriers, the company offers scheduled passenger and cargo services across a network spanning the United States, Canada and Mexico. Its core business activities include domestic and international air transportation, loyalty program management under the Mileage Plan brand, and ancillary revenue streams such as baggage fees, in-flight sales and code-share partnerships with other global airlines.

The roots of Alaska Air Group trace back to the foundation of its flagship carrier, Alaska Airlines, in 1932.

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