Dimensional Fund Advisors LP Increases Stock Position in Alaska Air Group, Inc. $ALK

Key Points

• Dimensional Fund Advisors LP increased its stake in Alaska Air Group by 2.3% in the first quarter, owning 6.35 million shares worth about $233.5 million at quarter-end. Institutional investors remain heavily involved, with institutions holding about 81.9% of the company.
• Alaska Air’s latest quarter showed revenue growth of 9.7% to $4.07 billion and adjusted EPS of -$0.92, which beat analysts’ expectations. Despite the beat, profitability remained under pressure, with negative net margin and return on equity.
• The company’s outlook is tempered by high fuel costs and weaker Hawaii-related demand, and it guided third-quarter adjusted EPS to $0 to $1, below some expectations. Analysts still mostly remain positive overall, with a consensus rating of “Moderate Buy” and an average target price of $66.73.

Dimensional Fund Advisors LP raised its holdings in shares of Alaska Air Group, Inc. (NYSE:ALK - Free Report) by 2.3% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 6,348,163 shares of the transportation company's stock after purchasing an additional 145,484 shares during the period. Dimensional Fund Advisors LP owned approximately 5.60% of Alaska Air Group worth $233,463,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also modified their holdings of ALK. Generate Investment Management Ltd acquired a new stake in Alaska Air Group in the 4th quarter valued at about $40,240,000. ARGA Investment Management LP raised its position in Alaska Air Group by 200.3% during the fourth quarter. ARGA Investment Management LP now owns 754,321 shares of the transportation company's stock worth $37,942,000 after acquiring an additional 503,167 shares during the last quarter. Private Advisory Group LLC acquired a new position in Alaska Air Group during the fourth quarter worth about $11,391,000. Massachusetts Financial Services Co. MA lifted its holdings in shares of Alaska Air Group by 24.8% in 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 in the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH lifted its holdings in shares of Alaska Air Group by 60.0% in the fourth quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 70,138 shares of the transportation company's stock valued at $3,528,000 after purchasing an additional 26,310 shares in the last quarter. Institutional investors own 81.90% of the company's stock.

Alaska Air Group News Summary

Here are the key news stories impacting Alaska Air Group this week:

• Positive Sentiment: Revenue rose about 10% year over year to roughly $4.1 billion, showing that underlying demand remained solid despite the tougher cost environment.
• Positive Sentiment: The company said unit revenue growth remained strong and highlighted operational progress, suggesting the core business is still improving. Article Title
• Positive Sentiment: Alaska Air’s second-quarter adjusted loss of $0.92 per share was better than analysts expected, which offers some support for the stock. Article Title
• Neutral Sentiment: Management emphasized strategic growth and execution during the earnings call, but the market appears to be waiting for clearer evidence that margins can recover. Article Title
• Negative Sentiment: Fuel costs surged, with economic fuel expense up sharply and adding a large hit to quarterly profitability; this was the biggest drag on sentiment. Article Title
• Negative Sentiment: The third-quarter outlook came in below expectations, with guidance for adjusted EPS of $0 to $1, reinforcing concerns that higher fuel prices could keep earnings under pressure. Article Title
• Negative Sentiment: Reports also pointed to weaker Hawaii-related demand after rainstorms disrupted spring break travel, adding another near-term headwind to revenue and profitability. Article Title

Alaska Air Group Stock Performance

Shares of NYSE ALK opened at $44.75 on Friday. The company has a 50-day simple moving average of $46.34 and a 200-day simple moving average of $45.85. The company has a debt-to-equity ratio of 1.58, a current ratio of 0.55 and a quick ratio of 0.39. The company has a market cap of $4.99 billion, a PE ratio of -28.50 and a beta of 1.28. Alaska Air Group, Inc. has a 12 month low of $33.03 and a 12 month high of $65.88.

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

Analyst Ratings Changes

A number of brokerages have recently weighed in on ALK. Evercore set a $60.00 price objective on shares of Alaska Air Group in a research note on Friday, April 17th. The Goldman Sachs Group reiterated a "buy" rating and set a $69.00 target price (up from $58.00) on shares of Alaska Air Group in a report on Thursday, July 2nd. Barclays set a $65.00 price target on Alaska Air Group and gave the stock an "overweight" rating in a research report on Wednesday. Bank of America boosted their price target on Alaska Air Group from $60.00 to $65.00 and gave the stock a "buy" rating in a report on Wednesday, July 1st. Finally, Weiss Ratings downgraded Alaska Air Group from a "sell (d+)" rating to a "sell (d)" rating in a research report on Monday. Eleven analysts have rated the stock with a Buy rating, one has given a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $66.73.

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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