Investors Buy Large Volume of Call Options on Alaska Air Group (NYSE:ALK)

Key Points

• Call-option activity surged: Investors bought 12,090 Alaska Air Group call options, 107% above the average daily volume. ALK shares rose 0.9% to $53 during Wednesday trading.
• Analyst views remain mixed: Price targets ranged from Citigroup’s $37 and “sell” rating to Susquehanna’s $70 and “positive” rating. Overall, analysts maintain a “Moderate Buy” consensus with a $65.65 target price.
• Financial performance remains pressured: Alaska Air Group reported a quarterly loss of $0.92 per share, though it beat estimates, while revenue increased 9.7% year over year to $4.07 billion. An executive vice president also sold 5,300 shares valued at approximately $263,000.

Alaska Air Group, Inc. (NYSE:ALK - Get Free Report) saw unusually large options trading activity on Wednesday. Stock investors acquired 12,090 call options on the company. This is an increase of 107% compared to the average daily volume of 5,835 call options.

Alaska Air Group Trading Up 0.9%

Shares of Alaska Air Group stock traded up $0.45 during trading on Wednesday, hitting $53.00. The stock had a trading volume of 448,290 shares, compared to its average volume of 3,859,383. Alaska Air Group has a 1 year low of $33.03 and a 1 year high of $65.88. The stock has a 50 day simple moving average of $47.70 and a 200 day simple moving average of $45.78. 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 company has a market capitalization of $5.91 billion, a PE ratio of -33.76 and a beta of 1.29.

Alaska Air Group (NYSE:ALK - Get Free Report) last posted its quarterly earnings data on Tuesday, July 21st. The transportation company reported ($0.92) earnings per share for the quarter, topping the consensus estimate of ($0.99) by $0.07. The firm had revenue of $4.07 billion for the quarter, compared to analysts' expectations 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 company's quarterly revenue was up 9.7% compared to the same quarter last year. During the same period in the previous year, the company posted $1.42 EPS. Alaska Air Group has set its Q3 2026 guidance at 0.000-1.000 EPS. On average, research analysts expect that Alaska Air Group will post -0.73 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of research firms have weighed in on ALK. Citigroup cut their target price on Alaska Air Group from $47.00 to $37.00 and set a "sell" rating for the company in a research report on Friday, July 24th. Wall Street Zen downgraded Alaska Air Group from a "sell" rating to a "strong sell" rating in a research note on Wednesday. Susquehanna upped their price objective on Alaska Air Group from $50.00 to $70.00 and gave the company a "positive" rating in a report on Tuesday, July 7th. Morgan Stanley cut their price objective on Alaska Air Group from $80.00 to $78.00 and set an "overweight" rating for the company in a report on Wednesday, April 22nd. Finally, Zacks Research raised Alaska Air Group from a "strong sell" rating to a "hold" rating in a research note on Wednesday, May 6th. Eleven equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $65.65.

Insider Activity

In other news, EVP Andrew R. Harrison sold 5,300 shares of the stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $49.67, for a total value of $263,251.00. Following the completion of the transaction, the executive vice president directly owned 25,528 shares in the company, valued at $1,267,975.76. This trade represents a 17.19% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 1.00% of the stock is owned by company insiders.

Hedge Funds Weigh In On Alaska Air Group

A number of large investors have recently made changes to their positions in ALK. Atlas Capital Advisors Inc. acquired a new stake in shares of Alaska Air Group during the fourth quarter worth approximately $26,000. First Command Advisory Services Inc. lifted its position in 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 in the last quarter. Compound Global Advisors LLC purchased a new stake in Alaska Air Group in the 2nd quarter worth approximately $39,000. Cedar Mountain Advisors LLC boosted its stake in shares of Alaska Air Group by 963.3% during the 2nd quarter. Cedar Mountain Advisors LLC now owns 840 shares of the transportation company's stock valued at $44,000 after buying an additional 761 shares during the period. Finally, SBI Securities Co. Ltd. boosted its stake in shares of Alaska Air Group by 30.4% during the 4th quarter. SBI Securities Co. Ltd. now owns 910 shares of the transportation company's stock valued at $46,000 after buying an additional 212 shares during the period. Institutional investors and hedge funds 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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