UBS Group Has Lowered Expectations for Allegiant Travel (NASDAQ:ALGT) Stock Price

Key Points

• UBS Group has lowered its target price for Allegiant Travel (NASDAQ: ALGT) from $59.00 to $52.00, maintaining a "neutral" rating on the stock, which suggests a potential upside of 9.24% based on its previous close.
• Despite the downgraded target, Allegiant Travel's recent quarterly earnings report showed better-than-expected results with earnings per share of $1.23, surpassing analyst estimates of $0.83.
• Currently, there is a mixed consensus among analysts for Allegiant Travel, with one sell rating, eight hold ratings, one buy, and one strong buy rating, indicating cautious sentiment in the market.

Allegiant Travel (NASDAQ:ALGT - Get Free Report) had its target price lowered by equities researchers at UBS Group from $59.00 to $52.00 in a research note issued on Wednesday,Benzinga reports. The brokerage currently has a "neutral" rating on the transportation company's stock. UBS Group's price target indicates a potential upside of 9.24% from the stock's previous close.

Several other brokerages have also recently issued reports on ALGT. TD Cowen upped their target price on Allegiant Travel from $35.00 to $50.00 and gave the company a "hold" rating in a report on Monday, May 12th. Susquehanna restated a "neutral" rating and issued a $50.00 target price (up from $45.00) on shares of Allegiant Travel in a report on Tuesday. Evercore ISI upgraded Allegiant Travel from an "in-line" rating to an "outperform" rating and set a $75.00 target price for the company in a report on Tuesday, July 1st. Barclays lowered their price target on Allegiant Travel from $60.00 to $52.00 and set an "equal weight" rating for the company in a report on Thursday, May 8th. Finally, Morgan Stanley decreased their target price on Allegiant Travel from $85.00 to $83.00 and set an "equal weight" rating on the stock in a research note on Monday, July 7th. One equities research analyst has rated the stock with a sell rating, eight have assigned a hold rating, one has issued a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $64.33.

Allegiant Travel Price Performance

ALGT traded down $1.27 during trading on Wednesday, reaching $47.60. 127,650 shares of the company traded hands, compared to its average volume of 442,295. The company has a debt-to-equity ratio of 1.57, a quick ratio of 0.87 and a current ratio of 0.90. The company has a market cap of $868.70 million, a P/E ratio of -2.99, a PEG ratio of 0.40 and a beta of 1.72. Allegiant Travel has a 12-month low of $36.08 and a 12-month high of $107.57. The firm has a fifty day simple moving average of $53.89 and a 200 day simple moving average of $60.70.

Allegiant Travel (NASDAQ:ALGT - Get Free Report) last issued its quarterly earnings results on Monday, August 4th. The transportation company reported $1.23 earnings per share for the quarter, topping analysts' consensus estimates of $0.83 by $0.40. The business had revenue of $689.40 million for the quarter, compared to analyst estimates of $685.58 million. Allegiant Travel had a positive return on equity of 4.88% and a negative net margin of 11.10%. The company's revenue was up 3.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.75 earnings per share. On average, equities analysts forecast that Allegiant Travel will post 7.7 EPS for the current year.

Institutional Investors Weigh In On Allegiant Travel

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Hussman Strategic Advisors Inc. acquired a new stake in shares of Allegiant Travel during the 2nd quarter valued at $1,154,000. Emerald Mutual Fund Advisers Trust lifted its position in shares of Allegiant Travel by 18.7% during the 2nd quarter. Emerald Mutual Fund Advisers Trust now owns 193,624 shares of the transportation company's stock valued at $10,640,000 after acquiring an additional 30,476 shares during the last quarter. Emerald Advisers LLC lifted its position in shares of Allegiant Travel by 15.9% during the 2nd quarter. Emerald Advisers LLC now owns 345,731 shares of the transportation company's stock valued at $18,998,000 after acquiring an additional 47,445 shares during the last quarter. Y Intercept Hong Kong Ltd grew its position in shares of Allegiant Travel by 762.7% in the second quarter. Y Intercept Hong Kong Ltd now owns 35,577 shares of the transportation company's stock valued at $1,955,000 after purchasing an additional 31,453 shares during the last quarter. Finally, Envestnet Asset Management Inc. acquired a new stake in shares of Allegiant Travel in the second quarter valued at about $205,000. Institutional investors and hedge funds own 85.81% of the company's stock.

Allegiant Travel Company Profile

Allegiant Travel Company, a leisure travel company, provides travel services and products to residents of under-served cities in the United States. The company offers scheduled air transportation on limited-frequency, nonstop flights between under-served cities and leisure destinations. As of February 1, 2024, it operated a fleet of 126 Airbus A320 series aircraft.

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