Alaska Air Group (NYSE:ALK) Announces Quarterly Earnings Results

Key Points

• Alaska Air Group reported a quarterly loss of $0.31 per share, missing analysts’ $0.39 profit estimate by $0.70. Revenue totaled $4.31 billion, in line with expectations, while net margin and return on equity remained negative.
• The stock rose 1.8% to $34.59 despite trading near its 52-week low of $33.03. Analysts maintain a “Moderate Buy” consensus rating, with an average price target of $57.38.
• Insider activity was mixed: CEO Benito Minicucci bought 25,000 shares, while EVP Andrew R. Harrison sold 5,300 shares.

Alaska Air Group (NYSE:ALK - Get Free Report) posted its earnings results on Tuesday. The transportation company reported ($0.31) earnings per share for the quarter, missing the consensus estimate of $0.39 by ($0.70), FiscalAI reports. The firm had revenue of $4.31 billion during the quarter, compared to analyst estimates of $4.31 billion. Alaska Air Group had a negative return on equity of 3.11% and a negative net margin of 1.19%.

Alaska Air Group Stock Up 1.8%

Shares of NYSE:ALK traded up $0.61 during midday trading on Tuesday, reaching $34.59. 8,961,947 shares of the company were exchanged, compared to its average volume of 3,615,397. Alaska Air Group has a fifty-two week low of $33.03 and a fifty-two week high of $60.63. The company has a quick ratio of 0.51, a current ratio of 0.55 and a debt-to-equity ratio of 1.58. The stock has a fifty day simple moving average of $40.78 and a two-hundred day simple moving average of $43.25. The firm has a market cap of $3.85 billion, a PE ratio of -22.03 and a beta of 1.33.

Analyst Ratings Changes

Several equities analysts have recently issued reports on the stock. Bank of America boosted their price target on shares of Alaska Air Group from $60.00 to $65.00 and gave the company a "buy" rating in a report on Wednesday, July 1st. Citigroup dropped their price objective on Alaska Air Group from $47.00 to $37.00 and set a "sell" rating on the stock in a research note on Friday, July 24th. UBS Group reiterated a "buy" rating and set a $51.00 target price (down from $54.00) on shares of Alaska Air Group in a report on Friday. TD Cowen reduced their target price on Alaska Air Group from $46.00 to $44.00 and set a "buy" rating on the stock in a report on Friday, October 2nd. Finally, Barclays set a $52.00 target price on Alaska Air Group and gave the company an "overweight" rating in a research note on Friday, September 11th. Ten equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Alaska Air Group currently has a consensus rating of "Moderate Buy" and a consensus target price of $57.38.

Insider Buying and Selling at Alaska Air Group

In other Alaska Air Group news, EVP Andrew R. Harrison sold 5,300 shares of the stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $49.67, for a total transaction of $263,251.00. Following the completion of the transaction, the executive vice president owned 25,528 shares in the company, valued at approximately $1,267,975.76. This represents a 17.19% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Benito Minicucci bought 25,000 shares of the stock in a transaction on Thursday, August 20th. The shares were purchased at an average price of $40.06 per share, with a total value of $1,001,500.00. Following the acquisition, the chief executive officer owned 256,582 shares in the company, valued at approximately $10,278,674.92. This represents a 10.80% increase in their position. The SEC filing for this purchase provides additional information. Insiders own 1.00% of the company's stock.

About Alaska Air Group

Alaska Air Group, Inc is an airline holding company headquartered in Seattle, Washington. Its principal subsidiaries include Alaska Airlines and Hawaiian Airlines, which operate under separate brands while serving passengers throughout North America, the Pacific and other international markets.

Alaska Airlines provides scheduled passenger and air cargo services across the United States, Canada, Mexico, Costa Rica and the Bahamas, with a strong presence on the U.S. West Coast and in Alaska.

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