Alaska Air Group, Inc. (NYSE:ALK) Stock Rated "Moderate Buy" by Sell-Side Brokerages

Key Points

• Analysts give Alaska Air Group a “Moderate Buy” consensus: Ten of 13 brokerages rate the stock a buy and three rate it a sell, with an average 12-month price target of $52.38.
• Recent results and forecasts point to earnings pressure: The company’s latest quarterly EPS of $0.36 fell short of the $0.39 consensus, while Zacks cut several future EPS estimates and maintained a “Strong Sell” rating.
• Shares traded at $38.30, down 1.9% on the day. CEO Benito Minicucci bought 25,000 shares at an average price of $40.06.

Shares of Alaska Air Group, Inc. (NYSE:ALK - Get Free Report) have earned an average recommendation of "Moderate Buy" from the thirteen brokerages that are presently covering the firm, MarketBeat.com reports. Three research analysts have rated the stock with a sell recommendation and ten have given a buy recommendation to the company. The average 1 year target price among brokers that have issued ratings on the stock in the last year is $52.38.

ALK has been the topic of several recent analyst reports. Cantor Fitzgerald set a $41.00 price objective on shares of Alaska Air Group in a research note on Thursday, October 29th. Weiss Ratings lowered Alaska Air Group from a "sell (d+)" rating to a "sell (d)" rating in a research note on Tuesday, August 18th. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $52.00 price objective on shares of Alaska Air Group in a research report on Thursday, October 22nd. Wall Street Zen downgraded Alaska Air Group from a "sell" rating to a "strong sell" rating in a research note on Monday, October 5th. Finally, Barclays set a $52.00 target price on Alaska Air Group and gave the stock an "overweight" rating in a report on Friday, September 11th.

Key Stories Impacting Alaska Air Group

Here are a few of the latest stories about ALK:

• Neutral Sentiment: A commentary suggested ALK could be undervalued after a steep five-year decline. This is a valuation argument rather than a new company or earnings catalyst. Alaska Air Group (ALK) Stock Could Be Undervalued On Its 23% Five Year Fall
• Negative Sentiment: Zacks Research made substantial cuts to Alaska Air Group’s full-year EPS forecasts for 2026 and 2027, and lowered its 2028 estimate to $7.84 from $9.39. Although it raised some individual quarterly estimates, it maintained a “Strong Sell” rating; the broad forecast reductions suggest concern about the earnings outlook. Alaska Air Group analyst estimate updates
• Negative Sentiment: UBS lowered its price target on Alaska Air Group to $48. The target remains above the share price cited in the provided background, but the cut itself signals reduced expectations. Alaska Air Group stock: UBS lowers target to 48 dollars

Alaska Air Group Trading Down 1.9%

Shares of ALK stock traded down $0.75 during trading hours on Friday, reaching $38.30. The company had a trading volume of 2,839,834 shares, compared to its average volume of 4,317,257. The company has a 50 day moving average of $38.66 and a 200 day moving average of $43.63. The company has a debt-to-equity ratio of 1.49, a current ratio of 0.46 and a quick ratio of 0.42. The firm has a market cap of $4.32 billion, a price-to-earnings ratio of -10.91 and a beta of 1.43. Alaska Air Group has a 1-year low of $32.33 and a 1-year high of $60.63.

Alaska Air Group (NYSE:ALK - Get Free Report) last posted its earnings results on Tuesday, October 20th. The transportation company reported $0.36 earnings per share for the quarter, missing the consensus estimate of $0.39 by ($0.03). The business had revenue of $4.31 billion for the quarter, compared to the consensus estimate of $4.31 billion. Alaska Air Group had a negative return on equity of 5.42% and a negative net margin of 2.58%. The business's revenue was up 14.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.05 earnings per share. On average, equities research analysts anticipate that Alaska Air Group will post -4.43 EPS for the current year.

Insider Buying and Selling

In related news, CEO Benito Minicucci purchased 25,000 shares of the stock in a transaction on Thursday, August 20th. The shares were purchased at an average cost of $40.06 per share, with a total value of $1,001,500.00. Following the acquisition, the chief executive officer directly owned 256,582 shares in the company, valued at $10,278,674.92. The trade was a 10.80% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. Company insiders own 1.00% of the company's stock.

Institutional Trading of Alaska Air Group

Several hedge funds have recently added to or reduced their stakes in ALK. BlackRock Inc. acquired a new position in shares of Alaska Air Group in the second quarter valued at about $606,307,000. Dimensional Fund Advisors LP boosted its holdings in Alaska Air Group by 2.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 6,348,163 shares of the transportation company's stock valued at $233,463,000 after purchasing an additional 145,484 shares during the period. Primecap Management Co. CA acquired a new position in shares of Alaska Air Group during the 2nd quarter worth approximately $168,467,000. Marshall Wace LLP grew its position in shares of Alaska Air Group by 107.3% during the 3rd quarter. Marshall Wace LLP now owns 2,496,975 shares of the transportation company's stock worth $96,633,000 after purchasing an additional 1,292,690 shares in the last quarter. Finally, U S Global Investors Inc. increased its holdings in shares of Alaska Air Group by 13.9% during the third quarter. U S Global Investors Inc. now owns 728,679 shares of the transportation company's stock worth $28,200,000 after purchasing an additional 88,966 shares during the period. 81.90% of the stock is owned by institutional investors and hedge funds.

About Alaska Air Group

Alaska Air Group is an airline holding company whose operations include Alaska Airlines, Hawaiian Airlines and regional carrier Horizon Air. Its businesses provide scheduled passenger and air-cargo services, along with related travel offerings. Based in Seattle, the group serves destinations across the United States and connects travelers to locations in Canada, Mexico, Central America and the Pacific, including Hawaii. Its airlines operate under their respective brands and serve a mix of domestic and international routes.

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