Allegiant Travel (NASDAQ:ALGT) Shares Up 7.2% - Here's Why

Key Points

• Allegiant Travel shares rose 7.2% to $76.45 in midday trading, although trading volume was approximately 92% below the average session volume.
• Analyst sentiment is broadly positive: the stock has a consensus “Moderate Buy” rating and an average price target of $123.38, with recent upgrades from Melius Research and UBS Group.
• Allegiant reported quarterly EPS of $2.19, beating estimates by $0.92, while revenue increased 36.8% year over year to $943.49 million; institutional investors own 85.81% of the stock.

Allegiant Travel Company (NASDAQ:ALGT - Get Free Report)'s stock price was up 7.2% on Monday. The stock traded as high as $76.75 and last traded at $76.4450. Approximately 45,646 shares changed hands during mid-day trading, a decline of 92% from the average session volume of 542,354 shares. The stock had previously closed at $71.34.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on ALGT. Melius Research upgraded shares of Allegiant Travel from a "hold" rating to a "buy" rating and set a $160.00 price objective for the company in a research report on Tuesday, July 7th. Raymond James Financial reiterated a "strong-buy" rating and set a $110.00 price target on shares of Allegiant Travel in a report on Wednesday, October 7th. Barclays decreased their price objective on Allegiant Travel from $145.00 to $115.00 and set an "overweight" rating for the company in a research report on Friday, September 11th. UBS Group upgraded shares of Allegiant Travel from a "neutral" rating to a "buy" rating and dropped their price objective for the company from $111.00 to $107.00 in a research note on Sunday, September 13th. Finally, Citigroup reaffirmed a "buy" rating on shares of Allegiant Travel in a research note on Tuesday, October 6th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Allegiant Travel presently has an average rating of "Moderate Buy" and a consensus price target of $123.38.

Allegiant Travel Price Performance

The stock has a market cap of $2.13 billion, a P/E ratio of 55.34, a price-to-earnings-growth ratio of 0.25 and a beta of 1.65. The company has a current ratio of 0.83, a quick ratio of 0.80 and a debt-to-equity ratio of 1.38. The company's fifty day simple moving average is $75.55 and its 200-day simple moving average is $87.66.

Allegiant Travel (NASDAQ:ALGT - Get Free Report) last announced its earnings results on Tuesday, August 4th. The transportation company reported $2.19 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.27 by $0.92. Allegiant Travel had a net margin of 0.90% and a return on equity of 10.83%. The business had revenue of $943.49 million during the quarter, compared to analysts' expectations of $982.70 million. During the same quarter last year, the company posted $1.23 EPS. The firm's revenue for the quarter was up 36.8% on a year-over-year basis. Allegiant Travel has set its Q3 2026 guidance at -1.000--0.000 EPS. As a group, sell-side analysts forecast that Allegiant Travel Company will post 5.59 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Farther Finance Advisors LLC boosted its position in shares of Allegiant Travel by 40.4% during the third quarter. Farther Finance Advisors LLC now owns 584 shares of the transportation company's stock worth $44,000 after buying an additional 168 shares during the period. Global Retirement Partners LLC bought a new position in shares of Allegiant Travel during the 2nd quarter worth approximately $26,000. Allworth Financial LP bought a new position in shares of Allegiant Travel during the 2nd quarter worth approximately $26,000. Yousif Capital Management LLC raised its stake in Allegiant Travel by 4.7% in the 3rd quarter. Yousif Capital Management LLC now owns 6,290 shares of the transportation company's stock valued at $477,000 after acquiring an additional 285 shares during the period. Finally, Thurston Springer Miller Herd & Titak Inc. acquired a new position in shares of Allegiant Travel in the second quarter valued at $42,000. 85.81% of the stock is owned by institutional investors and hedge funds.

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.

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