Alaska Air Group (NYSE:ALK) Shares Gap Up - Here's Why

Key Points

• Alaska Air Group shares opened higher, rising from a prior close of $41.90 to $43.58 before trading at $42.64.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and a $60.27 price target, despite some target reductions and a sell rating from Citigroup.
• The company beat quarterly EPS expectations, reporting a loss of $0.92 per share versus the estimated loss of $0.99, while revenue increased 9.7% year over year to $4.07 billion. CEO Benito Minicucci also purchased $1 million worth of shares.

Shares of Alaska Air Group, Inc. (NYSE:ALK - Get Free Report) gapped up prior to trading on Tuesday . The stock had previously closed at $41.90, but opened at $43.58. Alaska Air Group shares last traded at $42.64, with a volume of 489,847 shares changing hands.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on ALK shares. Raymond James Financial reiterated an "outperform" rating and set a $52.00 price target (down from $60.00) on shares of Alaska Air Group in a report on Monday, August 24th. BMO Capital Markets upped their target price on Alaska Air Group from $55.00 to $62.50 and gave the company an "outperform" rating in a research report on Thursday, July 2nd. Cantor Fitzgerald set a $46.00 target price on Alaska Air Group in a research report on Monday, August 24th. Barclays set a $52.00 target price on Alaska Air Group and gave the stock an "overweight" rating in a research note on Friday, September 11th. Finally, Citigroup lowered their target price on Alaska Air Group from $47.00 to $37.00 and set a "sell" rating for the company in a report on Friday, July 24th. Ten investment 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 stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $60.27.

Alaska Air Group Price Performance

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 stock has a market capitalization of $4.67 billion, a P/E ratio of -26.74 and a beta of 1.28. The business has a fifty day simple moving average of $44.36 and a 200 day simple moving average of $43.35.

Alaska Air Group (NYSE:ALK - Get Free Report) last announced its earnings results on Tuesday, July 21st. The transportation company reported ($0.92) EPS for the quarter, beating the consensus estimate of ($0.99) by $0.07. The company had revenue of $4.07 billion during the quarter, compared to the consensus estimate 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 firm's revenue for the quarter was up 9.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.42 earnings per share. Alaska Air Group has set its Q3 2026 guidance at 0.000-1.000 EPS. On average, analysts expect that Alaska Air Group, Inc. will post -1.74 earnings per share for the current year.

Insider Buying and Selling at Alaska Air Group

In other Alaska Air Group news, CEO Benito Minicucci bought 25,000 shares of the stock in a transaction dated Thursday, August 20th. The shares were bought at an average cost of $40.06 per share, for a total transaction of $1,001,500.00. Following the purchase, the chief executive officer directly owned 256,582 shares of the company's stock, valued at approximately $10,278,674.92. This trade represents a 10.80% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Andrew Harrison sold 5,300 shares of Alaska Air Group 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 sale, the executive vice president directly owned 25,528 shares in the company, valued at approximately $1,267,975.76. This represents a 17.19% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 1.00% of the company's stock.

Institutional Trading of Alaska Air Group

Hedge funds and other institutional investors have recently modified their holdings of the business. Capstone Financial Advisors Inc. raised its holdings in Alaska Air Group by 4.6% during the 2nd quarter. Capstone Financial Advisors Inc. now owns 30,206 shares of the transportation company's stock valued at $1,577,000 after acquiring an additional 1,339 shares during the period. Engineers Gate Manager LP boosted its position in shares of Alaska Air Group by 1,445.3% during the 2nd quarter. Engineers Gate Manager LP now owns 87,187 shares of the transportation company's stock valued at $4,551,000 after acquiring an additional 81,545 shares during the last quarter. Integrated Wealth Concepts LLC grew its stake in Alaska Air Group by 29.9% in the 2nd quarter. Integrated Wealth Concepts LLC now owns 32,134 shares of the transportation company's stock worth $1,677,000 after buying an additional 7,391 shares in the last quarter. Baird Financial Group Inc. grew its position in Alaska Air Group by 3.6% in the second quarter. Baird Financial Group Inc. now owns 503,555 shares of the transportation company's stock worth $26,286,000 after acquiring an additional 17,588 shares in the last quarter. Finally, Allworth Financial LP boosted its holdings in shares of Alaska Air Group by 32.2% in the 2nd quarter. Allworth Financial LP now owns 5,613 shares of the transportation company's stock worth $293,000 after purchasing an additional 1,367 shares in the last quarter. Institutional investors own 81.90% of the company's stock.

About Alaska Air Group

Alaska Air Group, Inc is an airline holding company whose principal subsidiaries include Alaska Airlines, Hawaiian Airlines and regional carrier Horizon Air. The company provides scheduled passenger and air cargo transportation, along with related services such as aircraft maintenance and ground handling through affiliated businesses.

Alaska Airlines serves destinations throughout the United States, Canada, Mexico, Costa Rica and other parts of North America, while Hawaiian Airlines connects the Hawaiian Islands with the U.S.

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