Alaska Air Group (NYSE:ALK) Reaches New 52-Week Low After Analyst Downgrade

Key Points

• Alaska Air Group shares hit a new 52-week low, trading as low as $32.74 after Susquehanna cut its price target from $50 to $43 while maintaining a positive rating.
• Despite the downgrade, analyst sentiment remains moderately bullish: 10 analysts rate the stock a Buy, one rates it Hold and two rate it Sell, with an average price target of about $56.85.
• The company reported $4.31 billion in quarterly revenue, up 14.4% year over year, but adjusted EPS fell to $0.36 from $1.05 a year earlier; management also forecast a larger-than-expected fourth-quarter loss amid rising fuel costs.

Alaska Air Group, Inc. (NYSE:ALK - Get Free Report) shares reached a new 52-week low during trading on Thursday after Susquehanna lowered their price target on the stock from $50.00 to $43.00. Susquehanna currently has a positive rating on the stock. Alaska Air Group traded as low as $32.74 and last traded at $32.6980, with a volume of 52,347 shares trading hands. The stock had previously closed at $33.54.

A number of other analysts have also recently weighed in on the stock. BMO Capital Markets set a $50.00 price target on shares of Alaska Air Group and gave the stock an "outperform" rating in a research report on Monday, September 28th. JPMorgan Chase & Co. reduced their price objective on Alaska Air Group from $94.00 to $92.00 and set an "overweight" rating on the stock in a research note on Friday, July 24th. Citigroup reaffirmed a "sell" rating on shares of Alaska Air Group in a research report on Thursday. Weiss Ratings lowered Alaska Air Group from a "sell (d+)" rating to a "sell (d)" rating in a research note on Tuesday, August 18th. Finally, 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. Ten analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $56.85.

Insider Buying and Selling at Alaska Air Group

In other Alaska Air Group news, EVP Andrew Harrison sold 5,300 shares of the stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $49.67, for a total transaction of $263,251.00. Following the transaction, the executive vice president directly owned 25,528 shares in the company, valued at $1,267,975.76. This represents a 17.19% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Benito Minicucci acquired 25,000 shares of the firm's stock in a transaction on Thursday, August 20th. The shares were bought at an average cost of $40.06 per share, with a total value of $1,001,500.00. Following the completion of the acquisition, the chief executive officer owned 256,582 shares in the company, valued at $10,278,674.92. This represents a 10.80% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 1.00% of the company's stock.

Alaska Air Group News Summary

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

• Positive Sentiment: Alaska Air reported 14.4% year-over-year revenue growth to $4.31 billion in the third quarter. Adjusted EPS of $0.36 exceeded the Zacks consensus estimate of $0.35, supported by strong yields and continued demand. Alaska Air Group Q3 Earnings Top Estimates
• Positive Sentiment: Management highlighted long-term growth initiatives, including premium traffic growth of 24.5%, diversified revenue reaching 54% of the total mix, new Seattle international routes and plans to join international joint businesses with oneworld and global partners. Alaska Air: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Susquehanna maintained a positive rating and set a $43 price target, implying substantial upside from the current price, although the target was reduced from $50.
• Neutral Sentiment: Analysts’ average price target remains considerably higher at approximately $57.38, but the dispersion among targets indicates uncertainty about the pace of earnings recovery. Alaska Air Group Analyst Price Target
• Negative Sentiment: Alaska Air posted a $147 million third-quarter loss, or a GAAP loss of $1.32 per share. Adjusted EPS of $0.36 declined sharply from $1.05 a year earlier and missed the broader consensus estimate of $0.39. Alaska Air Group Reports Third Quarter 2026 Results
• Negative Sentiment: The company forecast a fourth-quarter adjusted loss of $2.50 to $2.00 per share, substantially worse than the $1.14 consensus estimate. Surging fuel costs are more than offsetting revenue growth and are the primary reason for the weaker outlook. Alaska Air Forecasts Bigger-Than-Expected Fourth-Quarter Loss

Hedge Funds Weigh In On Alaska Air Group

Several large investors have recently modified their holdings of the stock. Fortitude Family Office LLC increased its holdings in Alaska Air Group by 323.5% in the third quarter. Fortitude Family Office LLC now owns 775 shares of the transportation company's stock valued at $30,000 after buying an additional 592 shares during the last quarter. Mosley Wealth Management lifted its holdings in Alaska Air Group by 1,475.0% during the 3rd quarter. Mosley Wealth Management now owns 945 shares of the transportation company's stock worth $34,000 after buying an additional 885 shares during the last quarter. Compound Global Advisors LLC bought a new position in Alaska Air Group during the 2nd quarter worth approximately $39,000. Cedar Mountain Advisors LLC lifted its holdings in Alaska Air Group by 963.3% during the 2nd quarter. Cedar Mountain Advisors LLC now owns 840 shares of the transportation company's stock worth $44,000 after buying an additional 761 shares during the last quarter. Finally, Root Financial Partners LLC acquired a new position in shares of Alaska Air Group in the 3rd quarter worth approximately $48,000. Institutional investors own 81.90% of the company's stock.

Alaska Air Group Trading Down 1.0%

The company has a current ratio of 0.55, a quick ratio of 0.51 and a debt-to-equity ratio of 1.58. The company has a market cap of $3.70 billion, a price-to-earnings ratio of -9.50 and a beta of 1.33. The firm has a 50-day moving average price of $40.23 and a 200 day moving average price of $43.20.

Alaska Air Group (NYSE:ALK - Get Free Report) last posted its quarterly earnings results on Tuesday, October 20th. The transportation company reported $0.36 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.39 by ($0.03). The firm had revenue of $4.31 billion for the quarter, compared to analyst estimates of $4.31 billion. Alaska Air Group had a negative net margin of 2.58% and a negative return on equity of 5.31%. The business's revenue was up 14.4% on a year-over-year basis. During the same period in the prior year, the company posted $1.05 earnings per share. As a group, sell-side analysts forecast that Alaska Air Group, Inc. will post -3.26 EPS for the current year.

Alaska Air Group Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.