Citigroup Downgrades Alaska Air Group (NYSE:ALK) to Sell

Key Points

• Citigroup downgraded Alaska Air Group from "buy" to "sell" with a $32 price target, implying roughly an 18% downside from the stock's recent level.
• The company reported a weaker-than-expected quarter (EPS of -$1.68 vs. -$1.61 expected and revenue of $3.30B vs. $3.31B), set Q2 guidance at about -1.00 EPS, and the shares trade near the low end of their 52-week range (~$39 opened, 52-week low $33.03).
• Analyst views remain mixed: 11 analysts rate ALK a Buy while only two rate it a Sell, leaving a consensus "Moderate Buy" with an average price target of $61.85, well above Citigroup's target.

Alaska Air Group (NYSE:ALK - Get Free Report) was downgraded by equities researchers at Citigroup from a "buy" rating to a "sell" rating in a research note issued to investors on Friday, Marketbeat Ratings reports. They presently have a $32.00 target price on the transportation company's stock. Citigroup's price objective would suggest a potential downside of 18.17% from the company's current price.

ALK has been the subject of several other research reports. Barclays reaffirmed an "overweight" rating and issued a $70.00 price target (up from $60.00) on shares of Alaska Air Group in a research report on Monday, January 12th. Cantor Fitzgerald set a $63.00 price objective on shares of Alaska Air Group in a research note on Friday, January 30th. BMO Capital Markets lifted 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. Weiss Ratings upgraded shares of Alaska Air Group from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, March 9th. Finally, Morgan Stanley reduced their price target on shares of Alaska Air Group from $80.00 to $78.00 and set an "overweight" rating for the company in a research report on Wednesday, April 22nd. Eleven analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, Alaska Air Group presently has an average rating of "Moderate Buy" and an average price target of $61.85.

Alaska Air Group Stock Performance

Shares of ALK opened at $39.11 on Friday. The company has a quick ratio of 0.39, a current ratio of 0.43 and a debt-to-equity ratio of 1.29. The business's 50 day moving average price is $41.85 and its 200-day moving average price is $46.13. Alaska Air Group has a 52 week low of $33.03 and a 52 week high of $65.88. The stock has a market cap of $4.43 billion, a P/E ratio of 73.78 and a beta of 1.27.

Alaska Air Group (NYSE:ALK - Get Free Report) last posted its quarterly earnings data on Monday, April 20th. The transportation company reported ($1.68) earnings per share for the quarter, missing analysts' consensus estimates of ($1.61) by ($0.07). The company had revenue of $3.30 billion for the quarter, compared to the consensus estimate of $3.31 billion. Alaska Air Group had a net margin of 0.51% and a return on equity of 4.96%. The firm's quarterly revenue was up 5.2% on a year-over-year basis. During the same period last year, the business earned ($0.77) EPS. Alaska Air Group has set its Q2 2026 guidance at -1.000--1.000 EPS. Equities research analysts anticipate that Alaska Air Group will post -0.22 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, EVP Kyle B. Levine sold 2,945 shares of the firm's stock in a transaction dated Monday, February 9th. The shares were sold at an average price of $60.02, for a total transaction of $176,758.90. Following the sale, the executive vice president owned 20,977 shares of the company's stock, valued at $1,259,039.54. This trade represents a 12.31% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Shane R. Tackett sold 24,000 shares of Alaska Air Group stock in a transaction that occurred on Wednesday, February 18th. The stock was sold at an average price of $57.15, for a total transaction of $1,371,600.00. Following the completion of the sale, the chief financial officer owned 43,377 shares of the company's stock, valued at $2,478,995.55. This represents a 35.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 56,945 shares of company stock valued at $3,204,569. 1.00% of the stock is owned by insiders.

Institutional Investors Weigh In On Alaska Air Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Atlas Capital Advisors Inc. bought a new stake in Alaska Air Group in the 4th quarter worth approximately $26,000. Foster Dykema Cabot & Partners LLC bought a new position in shares of Alaska Air Group during the 3rd quarter valued at $28,000. AlphaQuest LLC purchased a new position in shares of Alaska Air Group in the 3rd quarter worth $34,000. First Command Advisory Services Inc. boosted its stake in shares of Alaska Air Group by 242.5% in the 4th quarter. First Command Advisory Services Inc. now owns 685 shares of the transportation company's stock worth $34,000 after buying an additional 485 shares during the last quarter. Finally, Smartleaf Asset Management LLC grew its holdings in shares of 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 acquiring an additional 253 shares during the period. Hedge funds and other institutional investors own 81.90% of the company's stock.

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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