Allegiant Travel (NASDAQ:ALGT) Rating Lowered to "Hold" at Zacks Research

Key Points

• Zacks Research downgraded Allegiant Travel from “strong buy” to “hold,” although the broader analyst consensus remains “moderate buy” with an average price target of $125.77.
• Allegiant reported quarterly EPS of $2.19, beating the $1.27 consensus estimate, while revenue rose 36.8% year over year to $943.49 million but fell short of expectations.
• The stock opened at $78.64, below its 50-day and 200-day moving averages, while institutional investors own a substantial 85.81% of outstanding shares.

Allegiant Travel (NASDAQ:ALGT - Get Free Report) was downgraded by equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued to investors on Tuesday, Zacks reports.

Several other equities analysts have also recently commented on ALGT. Morgan Stanley boosted their price objective on shares of Allegiant Travel from $100.00 to $115.00 and gave the company an "equal weight" rating in a research note on Monday, July 6th. Raymond James Financial raised shares of Allegiant Travel from an "outperform" rating to a "strong-buy" rating and cut their price target for the company from $138.00 to $116.00 in a report on Monday, August 24th. JPMorgan Chase & Co. initiated coverage on shares of Allegiant Travel in a report on Wednesday, July 1st. They issued an "overweight" rating and a $156.00 price target on the stock. Melius Research raised Allegiant Travel from a "hold" rating to a "buy" rating and set a $160.00 price objective for the company in a research note on Tuesday, July 7th. Finally, Susquehanna reduced their target price on Allegiant Travel from $132.00 to $110.00 and set a "neutral" rating for the company in a research report on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $125.77.

Allegiant Travel Trading Up 0.6%

NASDAQ:ALGT opened at $78.64 on Tuesday. Allegiant Travel has a 1 year low of $57.11 and a 1 year high of $123.63. The stock's fifty day moving average price is $89.69 and its two-hundred day moving average price is $88.49. The company has a debt-to-equity ratio of 1.38, a current ratio of 0.83 and a quick ratio of 0.80. The company has a market cap of $2.15 billion, a P/E ratio of 55.77, a P/E/G ratio of 0.22 and a beta of 1.50.

Allegiant Travel (NASDAQ:ALGT - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The transportation company reported $2.19 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.27 by $0.92. The company had revenue of $943.49 million for the quarter, compared to analyst estimates of $982.70 million. Allegiant Travel had a return on equity of 10.83% and a net margin of 0.90%.The firm's revenue for the quarter was up 36.8% compared to the same quarter last year. During the same period in the previous year, the company posted $1.23 EPS. Allegiant Travel has set its Q3 2026 guidance at -1.000--0.000 EPS. As a group, analysts expect that Allegiant Travel will post 6.83 EPS for the current year.

Hedge Funds Weigh In On Allegiant Travel

A number of hedge funds and other institutional investors have recently modified their holdings of ALGT. BlackRock Inc. purchased a new stake in Allegiant Travel during the second quarter valued at about $416,591,000. Donald Smith & CO. Inc. purchased a new stake in Allegiant Travel during the 2nd quarter valued at about $175,636,000. Bank of New York Mellon Corp bought a new position in Allegiant Travel during the 2nd quarter worth approximately $33,013,000. Wellington Management Group LLP purchased a new position in Allegiant Travel in the 2nd quarter worth approximately $26,232,000. Finally, Heartland Advisors Inc. bought a new stake in Allegiant Travel in the second quarter valued at approximately $21,737,000. 85.81% of the stock is currently owned by hedge funds and other institutional investors.

Allegiant Travel Company Profile

Allegiant Travel Company is a leisure-focused travel and aviation company headquartered in Las Vegas, Nevada. Its principal subsidiary, Allegiant Air, operates scheduled and charter passenger flights, primarily connecting smaller regional airports with popular vacation destinations in the United States.

Allegiant Air's business model emphasizes low base fares and a range of optional services, including baggage, seat selection, priority boarding and other travel-related products. The airline primarily serves leisure travelers and operates routes to destinations such as Florida, Las Vegas, Arizona and other vacation markets, with service designed around demand for leisure travel rather than extensive daily connectivity between major business centers.

Allegiant Travel was established in 1997, and Allegiant Air began scheduled passenger operations in 1999.

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