Allegiant Travel (NASDAQ:ALGT) Shares Gap Down - Here's Why

Key Points

• Allegiant Travel shares opened lower, falling from a prior close of $73.59 to $71.59 before trading near $72.80.
• Analyst sentiment remains positive overall, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $123.38; Goldman Sachs and Melius Research recently raised their targets or ratings.
• The company exceeded quarterly earnings expectations, reporting $2.19 in EPS versus a $1.27 consensus estimate, while revenue rose 36.8% year over year but came in below forecasts.

Allegiant Travel Company (NASDAQ:ALGT - Get Free Report)'s stock price gapped down prior to trading on Wednesday. The stock had previously closed at $73.59, but opened at $71.59. Allegiant Travel shares last traded at $72.7980, with a volume of 30,529 shares traded.

Analyst Upgrades and Downgrades

A number of research firms recently commented on ALGT. The Goldman Sachs Group raised their price objective on shares of Allegiant Travel from $125.00 to $142.00 and gave the company a "buy" rating in a research note on Thursday, July 2nd. Citigroup restated a "buy" rating on shares of Allegiant Travel in a research report on Tuesday, October 6th. Weiss Ratings raised Allegiant Travel from a "sell (d-)" rating to a "sell (d)" rating in a research note on Tuesday, August 11th. Melius Research upgraded Allegiant Travel from a "hold" rating to a "buy" rating and set a $160.00 price target on the stock in a research report on Tuesday, July 7th. Finally, Bank of America lifted their price target on Allegiant Travel from $100.00 to $120.00 and gave the company a "neutral" rating in a research report on Wednesday, July 1st. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $123.38.

Allegiant Travel Stock Performance

The company has a market capitalization of $1.97 billion, a price-to-earnings ratio of 51.10 and a beta of 1.55. The stock's fifty day simple moving average is $75.94 and its two-hundred day simple moving average is $87.96.

Allegiant Travel (NASDAQ:ALGT - Get Free Report) last issued its earnings results on Tuesday, August 4th. The transportation company reported $2.19 earnings per share for the quarter, topping analysts' consensus estimates of $1.27 by $0.92. The business had revenue of $943.49 million for the quarter, compared to the consensus estimate of $982.70 million. The company's quarterly revenue was up 36.8% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.23 earnings per share. Allegiant Travel has set its Q3 2026 guidance at -1.000--0.000 EPS. On average, equities analysts anticipate that Allegiant Travel Company will post 5.64 EPS for the current fiscal year.

Hedge Funds Weigh In On Allegiant Travel

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Farther Finance Advisors LLC increased its stake in Allegiant Travel by 40.4% in the 3rd quarter. Farther Finance Advisors LLC now owns 584 shares of the transportation company's stock worth $44,000 after purchasing an additional 168 shares in the last quarter. Global Retirement Partners LLC purchased a new stake in Allegiant Travel during the second quarter valued at about $26,000. Allworth Financial LP acquired a new position in shares of Allegiant Travel in the second quarter worth about $26,000. Yousif Capital Management LLC boosted its holdings in shares of Allegiant Travel by 4.7% in the third quarter. Yousif Capital Management LLC now owns 6,290 shares of the transportation company's stock worth $477,000 after buying an additional 285 shares during the period. Finally, Thurston Springer Miller Herd & Titak Inc. purchased a new position in shares of Allegiant Travel in the second quarter worth approximately $42,000. Institutional investors and hedge funds own 85.81% of the company's stock.

About Allegiant Travel

Allegiant Travel Company is a leisure-focused travel company headquartered in Las Vegas, Nevada. Its principal operating subsidiary, Allegiant Air, is a low-cost airline that provides scheduled and charter passenger service, primarily connecting smaller and mid-sized U.S. cities with popular vacation destinations.

Allegiant Air's business model emphasizes nonstop routes, low base fares and optional services such as seat selection, baggage, priority boarding and other travel-related amenities.

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.