Zacks Research Expects Weaker Earnings for Alaska Air Group

Alaska Air Group, Inc. (NYSE:ALK - Free Report) - Investment analysts at Zacks Research lowered their Q3 2025 earnings per share (EPS) estimates for Alaska Air Group in a research report issued to clients and investors on Wednesday, May 7th. Zacks Research analyst M. Basu now anticipates that the transportation company will earn $2.66 per share for the quarter, down from their prior estimate of $2.85. The consensus estimate for Alaska Air Group's current full-year earnings is $6.03 per share. Zacks Research also issued estimates for Alaska Air Group's Q4 2025 earnings at $0.65 EPS, Q1 2026 earnings at $1.22 EPS, Q2 2026 earnings at $1.76 EPS, Q3 2026 earnings at $1.39 EPS, Q4 2026 earnings at $0.86 EPS, FY2026 earnings at $5.22 EPS, Q1 2027 earnings at $1.81 EPS and FY2027 earnings at $8.82 EPS.

Alaska Air Group (NYSE:ALK - Get Free Report) last issued its quarterly earnings results on Wednesday, April 23rd. The transportation company reported ($0.77) earnings per share for the quarter, missing analysts' consensus estimates of ($0.72) by ($0.05). Alaska Air Group had a net margin of 3.37% and a return on equity of 14.66%. The company had revenue of $3.14 billion during the quarter, compared to analysts' expectations of $3.19 billion. During the same period in the prior year, the business posted ($0.92) earnings per share. The company's quarterly revenue was up 40.5% compared to the same quarter last year.

ALK has been the topic of several other reports. Citigroup decreased their price target on shares of Alaska Air Group from $83.00 to $81.00 and set a "buy" rating on the stock in a research note on Tuesday, March 18th. Bank of America dropped their price target on Alaska Air Group from $80.00 to $70.00 and set a "buy" rating for the company in a research report on Thursday, April 3rd. UBS Group lowered Alaska Air Group from a "buy" rating to a "neutral" rating and dropped their price target for the company from $75.00 to $54.00 in a research report on Monday, April 7th. TD Cowen upped their price target on Alaska Air Group from $54.00 to $62.00 and gave the company a "buy" rating in a research report on Friday, April 25th. Finally, Barclays dropped their price target on Alaska Air Group from $62.00 to $55.00 and set an "overweight" rating for the company in a research report on Friday, April 25th. One analyst has rated the stock with a hold rating and twelve have given a buy rating to the company's stock. According to MarketBeat, Alaska Air Group has an average rating of "Moderate Buy" and a consensus price target of $65.92.

Alaska Air Group Price Performance

Shares of ALK traded down $0.90 during trading hours on Monday, hitting $53.98. 2,613,752 shares of the stock were exchanged, compared to its average volume of 2,736,558. The stock's 50-day moving average price is $48.91 and its two-hundred day moving average price is $58.23. The company has a debt-to-equity ratio of 1.04, a quick ratio of 0.58 and a current ratio of 0.61. The company has a market cap of $6.63 billion, a price-to-earnings ratio of 17.70, a price-to-earnings-growth ratio of 0.43 and a beta of 1.41. Alaska Air Group has a 12-month low of $32.62 and a 12-month high of $78.08.

Institutional Investors Weigh In On Alaska Air Group

Several large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its stake in Alaska Air Group by 0.4% during the 4th quarter. Vanguard Group Inc. now owns 13,651,876 shares of the transportation company's stock worth $883,959,000 after buying an additional 56,409 shares during the period. Dimensional Fund Advisors LP boosted its holdings in Alaska Air Group by 0.9% in the fourth quarter. Dimensional Fund Advisors LP now owns 6,225,054 shares of the transportation company's stock valued at $403,076,000 after purchasing an additional 56,740 shares during the period. FMR LLC boosted its holdings in Alaska Air Group by 328.7% in the fourth quarter. FMR LLC now owns 4,649,388 shares of the transportation company's stock valued at $301,048,000 after purchasing an additional 3,564,749 shares during the period. Boston Partners boosted its holdings in Alaska Air Group by 6.9% in the fourth quarter. Boston Partners now owns 3,460,959 shares of the transportation company's stock valued at $224,121,000 after purchasing an additional 222,780 shares during the period. Finally, American Century Companies Inc. boosted its holdings in Alaska Air Group by 1.5% in the first quarter. American Century Companies Inc. now owns 3,224,165 shares of the transportation company's stock valued at $158,693,000 after purchasing an additional 47,184 shares during the period. 81.90% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, EVP Andrew R. Harrison sold 6,600 shares of the firm's stock in a transaction dated Thursday, February 20th. The stock was sold at an average price of $76.28, for a total transaction of $503,448.00. Following the completion of the transaction, the executive vice president now directly owns 34,030 shares in the company, valued at $2,595,808.40. This trade represents a 16.24% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, COO Muehlen Constance E. Von sold 22,157 shares of the firm's stock in a transaction dated Tuesday, February 18th. The shares were sold at an average price of $75.12, for a total value of $1,664,433.84. Following the transaction, the chief operating officer now owns 20,026 shares of the company's stock, valued at $1,504,353.12. This trade represents a 52.53% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 28,790 shares of company stock valued at $2,169,537 over the last 90 days. 1.00% of the stock is owned by company insiders.

Alaska Air Group Company Profile

Alaska Air Group, Inc, through its subsidiaries, operates airlines. It operates through three segments: Mainline, Regional, and Horizon. The company offers scheduled air transportation services on Boeing jet aircraft for passengers and cargo in the United States, and in parts of Canada, Mexico, Costa Rica, Belize, Guatemala, and the Bahamas; and for passengers across a shorter distance network within the United States, Canada, and Mexico.