Wall Street Zen Downgrades Alaska Air Group (NYSE:ALK) to Strong Sell

Key Points

• Wall Street Zen downgraded Alaska Air Group from “sell” to “strong sell,” signaling a more bearish view on the stock.
• Despite that downgrade, most other analysts remain positive: the stock currently has a consensus rating of “Moderate Buy” with a consensus price target of $67.12.
• Alaska Air Group recently reported a quarterly EPS miss, posting ($1.68) per share versus estimates of ($1.61), while revenue came in roughly in line at $3.30 billion.

Alaska Air Group (NYSE:ALK - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "sell" rating to a "strong sell" rating in a report released on Monday.

A number of other research firms have also weighed in on ALK. UBS Group restated a "buy" rating and issued a $62.00 target price (up from $56.00) on shares of Alaska Air Group in a report on Tuesday, June 23rd. Susquehanna raised their price objective on Alaska Air Group from $50.00 to $70.00 and gave the company a "positive" rating in a research note on Tuesday, July 7th. The Goldman Sachs Group reaffirmed a "buy" rating and set a $69.00 price objective (up from $58.00) on shares of Alaska Air Group in a report on Thursday, July 2nd. Zacks Research upgraded shares of Alaska Air Group from a "strong sell" rating to a "hold" rating in a research note on Wednesday, May 6th. Finally, Evercore set a $60.00 target price on shares of Alaska Air Group in a report on Friday, April 17th. Eleven analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $67.12.

Alaska Air Group Trading Down 0.0%

NYSE:ALK opened at $45.50 on Monday. The company has a debt-to-equity ratio of 1.29, a current ratio of 0.43 and a quick ratio of 0.39. The firm has a 50-day moving average of $45.82 and a 200-day moving average of $46.00. The company has a market cap of $5.07 billion, a PE ratio of 85.84 and a beta of 1.28. Alaska Air Group has a one year low of $33.03 and a one year high of $65.88.

Alaska Air Group (NYSE:ALK - Get Free Report) last announced its quarterly earnings results on Monday, April 20th. The transportation company reported ($1.68) earnings per share for the quarter, missing the consensus estimate of ($1.61) by ($0.07). The business had revenue of $3.30 billion during the quarter, compared to the consensus estimate of $3.31 billion. Alaska Air Group had a net margin of 0.51% and a return on equity of 4.96%. Alaska Air Group's revenue was up 5.2% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.77) EPS. As a group, equities research analysts expect that Alaska Air Group will post -0.06 EPS for the current fiscal year.

Institutional Investors Weigh In On Alaska Air Group

Large investors have recently made changes to their positions in the business. Vanguard Group Inc. grew its position in shares of Alaska Air Group by 1.0% in the fourth quarter. Vanguard Group Inc. now owns 11,059,404 shares of the transportation company's stock valued at $556,288,000 after purchasing an additional 110,628 shares in the last quarter. Dimensional Fund Advisors LP boosted its stake in Alaska Air Group by 2.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 6,348,163 shares of the transportation company's stock worth $233,463,000 after purchasing an additional 145,484 shares during the period. Capital Research Global Investors grew its holdings in Alaska Air Group by 86.8% during the 4th quarter. Capital Research Global Investors now owns 3,175,350 shares of the transportation company's stock valued at $159,720,000 after buying an additional 1,475,350 shares in the last quarter. Massachusetts Financial Services Co. MA grew its holdings in Alaska Air Group by 24.8% during the 4th quarter. Massachusetts Financial Services Co. MA now owns 2,962,620 shares of the transportation company's stock valued at $149,020,000 after buying an additional 588,119 shares in the last quarter. Finally, Geode Capital Management LLC increased its position in shares of Alaska Air Group by 1.7% during the fourth quarter. Geode Capital Management LLC now owns 2,149,777 shares of the transportation company's stock valued at $108,166,000 after buying an additional 35,352 shares during the period. 81.90% of the stock is owned by hedge funds and other institutional investors.

Alaska Air Group Company Profile

Alaska Air Group is a publicly traded holding company headquartered in Seattle, Washington, that operates two main airlines—Alaska Airlines and Horizon Air. Through these carriers, the company offers scheduled passenger and cargo services across a network spanning the United States, Canada and Mexico. Its core business activities include domestic and international air transportation, loyalty program management under the Mileage Plan brand, and ancillary revenue streams such as baggage fees, in-flight sales and code-share partnerships with other global airlines.

The roots of Alaska Air Group trace back to the foundation of its flagship carrier, Alaska Airlines, in 1932.

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