Allegiant Travel (NASDAQ:ALGT) Downgraded by Wall Street Zen to "Hold"

Key Points

• Wall Street Zen downgraded Allegiant Travel from “Buy” to “Hold,” though the broader analyst consensus remains “Moderate Buy” with an average price target of $127.
• Allegiant reported quarterly EPS of $2.19, beating the $1.27 consensus estimate, while revenue of $943.5 million fell short of expectations despite rising 36.8% year over year.
• Institutional ownership remains high at 85.81%, with BlackRock and Donald Smith & Co. among investors that recently acquired significant stakes.

Allegiant Travel (NASDAQ:ALGT - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Saturday.

A number of other brokerages have also recently commented on ALGT. Susquehanna dropped their target price on Allegiant Travel from $132.00 to $110.00 and set a "neutral" rating for the company in a report on Friday, August 7th. Bank of America boosted their target price on Allegiant Travel from $100.00 to $120.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 1st. Citigroup upgraded Allegiant Travel from a "neutral" rating to a "buy" rating and raised their price objective for the stock from $98.00 to $156.00 in a research note on Friday, June 26th. Weiss Ratings raised shares of Allegiant Travel from a "sell (d-)" rating to a "sell (d)" rating in a report on Tuesday. Finally, UBS Group increased their target price on Allegiant Travel from $103.00 to $111.00 and gave the company a "neutral" rating in a research report on Wednesday, August 5th. Nine research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $127.00.

Allegiant Travel Stock Performance

Shares of ALGT opened at $85.75 on Friday. The firm has a market capitalization of $2.34 billion, a PE ratio of 60.82, a price-to-earnings-growth ratio of 0.23 and a beta of 1.53. The company has a debt-to-equity ratio of 1.38, a current ratio of 0.83 and a quick ratio of 0.87. The company has a 50-day simple moving average of $101.13 and a two-hundred day simple moving average of $92.43. Allegiant Travel has a one year low of $53.70 and a one year high of $123.63.

Allegiant Travel (NASDAQ:ALGT - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The transportation company reported $2.19 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.27 by $0.92. The business had revenue of $943.49 million during the quarter, compared to the consensus estimate of $982.70 million. Allegiant Travel had a return on equity of 10.83% and a net margin of 0.90%.The firm's quarterly revenue was up 36.8% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.23 earnings per share. Allegiant Travel has set its Q3 2026 guidance at -1.000--0.000 EPS. On average, analysts anticipate that Allegiant Travel will post 7.17 EPS for the current fiscal year.

Institutional Investors Weigh In On Allegiant Travel

A number of large investors have recently made changes to their positions in the stock. BlackRock Inc. acquired a new stake in shares of Allegiant Travel in the second quarter valued at approximately $416,591,000. Donald Smith & CO. Inc. purchased a new stake in Allegiant Travel in the 2nd quarter valued at $175,636,000. Dimensional Fund Advisors LP grew its holdings in Allegiant Travel by 0.9% in the 4th quarter. Dimensional Fund Advisors LP now owns 828,012 shares of the transportation company's stock valued at $70,607,000 after buying an additional 7,228 shares in the last quarter. Par Capital Management Inc. increased its stake in shares of Allegiant Travel by 11.1% in the 2nd quarter. Par Capital Management Inc. now owns 584,996 shares of the transportation company's stock worth $32,146,000 after acquiring an additional 58,566 shares during the last quarter. Finally, State Street Corp increased its stake in shares of Allegiant Travel by 0.4% in the 4th quarter. State Street Corp now owns 567,340 shares of the transportation company's stock worth $48,377,000 after acquiring an additional 2,282 shares during the last quarter. 85.81% of the stock is currently owned by hedge funds and other institutional investors.

Allegiant Travel Company Profile

Allegiant Travel Company is a holding company that operates Allegiant Air, a low‐cost leisure airline offering scheduled and charter air service. The company focuses on connecting underserved secondary markets with popular vacation destinations across the United States. By targeting price‐sensitive leisure travelers, Allegiant Air operates a point‐to‐point network that avoids the traditional hub‐and‐spoke model, providing non‐stop flights from smaller cities to resort and entertainment hubs.

In addition to its core flight operations, Allegiant Travel Company offers packaged travel services that include hotel accommodations, rental cars and attraction tickets through its online portal.

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