Allegiant Travel (NASDAQ:ALGT) Stock Price Up 9.7% - Still a Buy?

Key Points

• Allegiant Travel's shares surged by 9.7% to a recent trading price of $53.80, despite a significant drop in trading volume compared to average levels.
• Positive quarterly earnings were reported with an EPS of $1.23, surpassing analyst estimates of $0.83, along with a year-over-year revenue increase of 3.5% to $689.40 million.
• Analysts have mixed views on the stock, with a consensus rating of "Hold" and target prices ranging from $50.00 to $80.00, indicating cautious optimism about its future performance.

Allegiant Travel Company (NASDAQ:ALGT - Get Free Report)'s stock price traded up 9.7% on Tuesday . The stock traded as high as $52.12 and last traded at $53.80. 50,858 shares traded hands during mid-day trading, a decline of 89% from the average session volume of 443,442 shares. The stock had previously closed at $49.04.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on the stock. Barclays lowered their price objective on shares of Allegiant Travel from $60.00 to $52.00 and set an "equal weight" rating for the company in a research note on Thursday, May 8th. Bank of America lowered their price objective on shares of Allegiant Travel from $50.00 to $45.00 and set an "underperform" rating for the company in a research note on Tuesday, July 8th. Evercore ISI upgraded shares of Allegiant Travel from an "in-line" rating to an "outperform" rating and set a $75.00 price objective for the company in a research note on Tuesday, July 1st. UBS Group lowered their price objective on shares of Allegiant Travel from $59.00 to $52.00 and set a "neutral" rating for the company in a research note on Wednesday, August 6th. Finally, Morgan Stanley lowered their price objective on shares of Allegiant Travel from $85.00 to $83.00 and set an "equal weight" rating for the company in a research note on Monday, July 7th. One analyst has rated the stock with a sell rating, eight have given a hold rating, one has issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, Allegiant Travel presently has an average rating of "Hold" and an average target price of $64.33.

Allegiant Travel Stock Down 0.2%

The firm has a market cap of $1.10 billion, a P/E ratio of -3.75, a price-to-earnings-growth ratio of 0.54 and a beta of 1.72. The stock's 50 day simple moving average is $53.59 and its 200 day simple moving average is $58.29. The company has a debt-to-equity ratio of 1.68, a quick ratio of 1.07 and a current ratio of 1.10.

Allegiant Travel (NASDAQ:ALGT - Get Free Report) last issued its quarterly earnings results on Monday, August 4th. The transportation company reported $1.23 earnings per share for the quarter, topping analysts' consensus estimates of $0.83 by $0.40. The company had revenue of $689.40 million for the quarter, compared to the consensus estimate of $685.58 million. Allegiant Travel had a negative net margin of 11.10% and a positive return on equity of 5.00%. The firm's quarterly revenue was up 3.5% on a year-over-year basis. During the same period in the previous year, the firm earned $0.75 EPS. Research analysts anticipate that Allegiant Travel Company will post 7.7 EPS for the current year.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in ALGT. LPL Financial LLC lifted its stake in Allegiant Travel by 61.2% in the fourth quarter. LPL Financial LLC now owns 16,548 shares of the transportation company's stock worth $1,558,000 after acquiring an additional 6,281 shares during the period. Wells Fargo & Company MN raised its position in shares of Allegiant Travel by 22.6% in the 4th quarter. Wells Fargo & Company MN now owns 11,184 shares of the transportation company's stock worth $1,053,000 after purchasing an additional 2,059 shares during the last quarter. Russell Investments Group Ltd. increased its holdings in Allegiant Travel by 1,486.7% in the 4th quarter. Russell Investments Group Ltd. now owns 1,904 shares of the transportation company's stock worth $179,000 after buying an additional 1,784 shares in the last quarter. Bank of Montreal Can bought a new stake in Allegiant Travel in the 4th quarter worth about $213,000. Finally, Legal & General Group Plc increased its holdings in Allegiant Travel by 1.1% in the 4th quarter. Legal & General Group Plc now owns 31,767 shares of the transportation company's stock worth $2,990,000 after buying an additional 348 shares in the last quarter. 85.81% of the stock is owned by hedge funds and other institutional investors.

Allegiant Travel Company Profile

Allegiant Travel Company, a leisure travel company, provides travel services and products to residents of under-served cities in the United States. The company offers scheduled air transportation on limited-frequency, nonstop flights between under-served cities and leisure destinations. As of February 1, 2024, it operated a fleet of 126 Airbus A320 series aircraft.