Citigroup Cuts Alaska Air Group (NYSE:ALK) Price Target to $37.00

Key Points

• Citigroup cut Alaska Air Group’s price target from $47 to $37 and kept a sell rating on the stock, implying about 17% downside from the prior close.
• Despite Citigroup’s bearish call, the broader analyst view remains more positive: Alaska Air Group has a Moderate Buy consensus with an average price target of about $65.96.
• The company recently reported Q2 EPS of -$0.92, beating estimates, while revenue rose 9.7% year over year to $4.07 billion, and the stock traded up 0.9% on Friday to $44.75.

Alaska Air Group (NYSE:ALK - Get Free Report) had its target price decreased by Citigroup from $47.00 to $37.00 in a note issued to investors on Friday,Benzinga reports. The firm presently has a "sell" rating on the transportation company's stock. Citigroup's price target suggests a potential downside of 17.31% from the company's previous close.

A number of other research firms have also weighed in on ALK. TD Cowen reissued a "buy" rating and set a $59.00 price objective (up from $51.00) on shares of Alaska Air Group in a research note on Thursday, July 2nd. Barclays set a $65.00 price objective on shares of Alaska Air Group and gave the company an "overweight" rating in a research note on Wednesday. Bank of America increased their target price on shares of Alaska Air Group from $60.00 to $65.00 and gave the stock a "buy" rating in a report on Wednesday, July 1st. Zacks Research upgraded Alaska Air Group from a "strong sell" rating to a "hold" rating in a report on Wednesday, May 6th. Finally, Morgan Stanley cut their price objective on Alaska Air Group from $80.00 to $78.00 and set an "overweight" rating on the stock in a research report on Wednesday, April 22nd. Eleven equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat, Alaska Air Group presently has a consensus rating of "Moderate Buy" and a consensus price target of $65.96.

Alaska Air Group Trading Up 0.9%

Shares of Alaska Air Group stock opened at $44.75 on Friday. The company has a 50 day simple moving average of $46.34 and a two-hundred day simple moving average of $45.85. The firm has a market cap of $4.99 billion, a PE ratio of -28.50 and a beta of 1.28. Alaska Air Group has a 1 year low of $33.03 and a 1 year high of $65.88. The company has a debt-to-equity ratio of 1.58, a current ratio of 0.55 and a quick ratio of 0.39.

Alaska Air Group (NYSE:ALK - Get Free Report) last announced its earnings results on Tuesday, July 21st. The transportation company reported ($0.92) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.99) by $0.07. The company had revenue of $4.07 billion during the quarter, compared to analyst estimates of $4.09 billion. Alaska Air Group had a negative net margin of 1.19% and a negative return on equity of 3.11%. The firm's quarterly revenue was up 9.7% compared to the same quarter last year. During the same period in the previous year, the business earned $1.42 earnings per share. Alaska Air Group has set its Q3 2026 guidance at 0.000-1.000 EPS. Analysts expect that Alaska Air Group will post -0.06 earnings per share for the current fiscal year.

Institutional Trading of Alaska Air Group

Hedge funds have recently made changes to their positions in the stock. Generate Investment Management Ltd bought a new stake in Alaska Air Group in the 4th quarter worth approximately $40,240,000. ARGA Investment Management LP boosted its position in shares of Alaska Air Group by 200.3% during the 4th quarter. ARGA Investment Management LP now owns 754,321 shares of the transportation company's stock valued at $37,942,000 after acquiring an additional 503,167 shares during the last quarter. Private Advisory Group LLC purchased a new position in shares of Alaska Air Group in the fourth quarter valued at $11,391,000. Massachusetts Financial Services Co. MA lifted its position in Alaska Air Group by 24.8% during the fourth quarter. Massachusetts Financial Services Co. MA now owns 2,962,620 shares of the transportation company's stock valued at $149,020,000 after purchasing an additional 588,119 shares during the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH grew its stake in shares of Alaska Air Group by 60.0% in the 4th quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 70,138 shares of the transportation company's stock worth $3,528,000 after buying an additional 26,310 shares in the last quarter. 81.90% of the stock is owned by institutional investors.

About Alaska Air Group

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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