Zacks Research Issues Negative Forecast for ALK Earnings

Key Points

• Zacks Research cut its Q2 2026 EPS estimate for Alaska Air Group from $1.84 to ($1.00) and assigned a "Strong Sell" rating, forecasting FY2026 EPS of ($2.73) and FY2027 EPS of $6.19.
• Alaska Air reported Q1 EPS of ($1.68) versus a consensus ($1.61) with revenue of $3.30B, and set Q2 2026 guidance at -1.00 to -1.00 EPS.
• Despite multiple firms issuing buy/overweight ratings and a consensus target of $61.85, the stock trades near $38.47, insiders have sold roughly 56,945 shares in the last 90 days, and institutional investors own about 81.9% of the shares.

Alaska Air Group, Inc. (NYSE:ALK - Free Report) - Stock analysts at Zacks Research decreased their Q2 2026 earnings per share estimates for shares of Alaska Air Group in a research note issued on Monday, May 4th. Zacks Research analyst Team now forecasts that the transportation company will earn ($1.00) per share for the quarter, down from their prior estimate of $1.84. Zacks Research has a "Strong Sell" rating on the stock. The consensus estimate for Alaska Air Group's current full-year earnings is ($0.22) per share. Zacks Research also issued estimates for Alaska Air Group's Q3 2026 earnings at $0.36 EPS, Q4 2026 earnings at ($0.42) EPS, FY2026 earnings at ($2.73) EPS, Q2 2027 earnings at $1.66 EPS, Q3 2027 earnings at $2.30 EPS, Q4 2027 earnings at $1.49 EPS, FY2027 earnings at $6.19 EPS and Q1 2028 earnings at $1.03 EPS.

Alaska Air Group (NYSE:ALK - Get Free Report) last released its quarterly earnings data on Monday, April 20th. The transportation company reported ($1.68) EPS for the quarter, missing the consensus estimate of ($1.61) by ($0.07). The company had revenue of $3.30 billion during the quarter, compared to analyst estimates 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 for the quarter was up 5.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.77) earnings per share. Alaska Air Group has set its Q2 2026 guidance at -1.000--1.000 EPS.

Several other research firms also recently commented on ALK. UBS Group reaffirmed a "buy" rating and issued a $54.00 target price (up from $53.00) on shares of Alaska Air Group in a research report on Wednesday, April 15th. Weiss Ratings upgraded Alaska Air Group from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Monday, March 9th. Barclays restated an "overweight" rating and issued a $70.00 price target (up from $60.00) on shares of Alaska Air Group in a research note on Monday, January 12th. Susquehanna dropped their price objective on shares of Alaska Air Group from $55.00 to $50.00 and set a "positive" rating for the company in a research note on Wednesday, April 22nd. Finally, Morgan Stanley cut their price objective on shares of Alaska Air Group from $80.00 to $78.00 and set an "overweight" rating for the company in a report on Wednesday, April 22nd. Eleven equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $61.85.

Alaska Air Group Stock Up 4.1%

Alaska Air Group stock opened at $38.47 on Wednesday. The company's 50-day moving average price is $41.57 and its two-hundred day moving average price is $46.01. The company has a quick ratio of 0.39, a current ratio of 0.43 and a debt-to-equity ratio of 1.29. The stock has a market cap of $4.36 billion, a P/E ratio of 72.58 and a beta of 1.25. Alaska Air Group has a twelve month low of $33.03 and a twelve month high of $65.88.

Hedge Funds Weigh In On Alaska Air Group

Several hedge funds and other institutional investors have recently modified their holdings of ALK. Allianz Asset Management GmbH grew its position in Alaska Air Group by 40.1% in the third quarter. Allianz Asset Management GmbH now owns 173,610 shares of the transportation company's stock valued at $8,642,000 after acquiring an additional 49,663 shares during the last quarter. Generate Investment Management Ltd bought a new position in shares of Alaska Air Group in the fourth quarter worth about $40,240,000. Lighthouse Investment Partners LLC acquired a new stake in shares of Alaska Air Group in the 3rd quarter valued at approximately $4,194,000. CM Management LLC acquired a new stake in shares of Alaska Air Group in the 3rd quarter valued at approximately $1,244,000. Finally, ARGA Investment Management LP grew its holdings in shares of Alaska Air Group by 200.3% during the 4th quarter. ARGA Investment Management LP now owns 754,321 shares of the transportation company's stock valued at $37,942,000 after purchasing an additional 503,167 shares during the last quarter. Institutional investors own 81.90% of the company's stock.

Insider Activity

In other news, EVP Kyle B. Levine sold 2,945 shares of the company's stock in a transaction that occurred on Monday, February 9th. The shares were sold at an average price of $60.02, for a total transaction of $176,758.90. Following the completion of the sale, the executive vice president owned 20,977 shares of the company's stock, valued at approximately $1,259,039.54. This represents a 12.31% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP Andrew R. Harrison sold 14,500 shares of the stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $54.81, for a total transaction of $794,745.00. Following the sale, the executive vice president owned 20,195 shares in the company, valued at $1,106,887.95. This represents a 41.79% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 56,945 shares of company stock worth $3,204,569. 1.00% of the stock is currently owned by corporate insiders.

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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