Alaska Air Group Inc. (ALK) Downgraded by Zacks Investment Research to Sell
Alaska Air Group Inc. (NYSE:ALK) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Tuesday.
According to Zacks, “Alaska Air Group continues to be impacted by volatile fuel prices and risk of low demand. With the holiday season getting over in U.S., the company might face challenges in improving its top-line growth. However, one of the major concern for Alaska Air Group investors is the delay in close of the merger with Virgin America. We expect the company to give some details on the decision regarding the deal during third quarter earnings release on Oct 20. However, a lot depends on the review by U.S. Department of Justice (DoJ). Any further delay in closing the deal can make investors wary. “
Several other analysts also recently weighed in on ALK. Credit Suisse Group AG upgraded Alaska Air Group from a “neutral” rating to an “outperform” rating and lifted their price objective for the company from $70.00 to $85.00 in a report on Monday, July 25th. JPMorgan Chase & Co. upgraded Alaska Air Group from a “neutral” rating to an “overweight” rating and set a $78.50 price objective for the company in a report on Wednesday, July 27th. Morgan Stanley restated a “buy” rating and issued a $85.00 price objective on shares of Alaska Air Group in a report on Thursday, August 11th. Vetr downgraded Alaska Air Group from a “strong-buy” rating to a “buy” rating and set a $77.17 price objective for the company. in a report on Tuesday, September 6th. Finally, Imperial Capital initiated coverage on Alaska Air Group in a report on Friday, September 23rd. They issued an “in-line” rating and a $74.00 price objective for the company. One research analyst has rated the stock with a sell rating, four have given a hold rating, ten have given a buy rating and one has assigned a strong buy rating to the company’s stock. The company presently has an average rating of “Buy” and a consensus price target of $86.30.
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Alaska Air Group (NYSE:ALK) traded up 0.24% during trading on Tuesday, reaching $72.11. 1,098,382 shares of the company’s stock traded hands. The company has a 50 day moving average of $68.14 and a 200 day moving average of $67.65. Alaska Air Group has a one year low of $54.51 and a one year high of $87.17. The firm has a market cap of $8.88 billion, a price-to-earnings ratio of 9.98 and a beta of 0.89.
Alaska Air Group (NYSE:ALK) last released its quarterly earnings data on Thursday, July 21st. The company reported $2.12 earnings per share for the quarter, beating the consensus estimate of $2.09 by $0.03. The firm earned $1.49 billion during the quarter, compared to the consensus estimate of $1.50 billion. Alaska Air Group had a return on equity of 36.88% and a net margin of 15.86%. The firm’s quarterly revenue was up 4.0% on a year-over-year basis. During the same period in the previous year, the company posted $1.76 earnings per share. Equities research analysts predict that Alaska Air Group will post $7.05 EPS for the current year.
In related news, VP Brandon Pedersen sold 9,943 shares of the company’s stock in a transaction that occurred on Thursday, September 8th. The stock was sold at an average price of $70.52, for a total value of $701,180.36. Following the sale, the vice president now owns 13,360 shares in the company, valued at $942,147.20. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Mark G. Eliasen sold 4,560 shares of the company’s stock in a transaction that occurred on Friday, August 26th. The stock was sold at an average price of $68.19, for a total value of $310,946.40. Following the transaction, the vice president now directly owns 5,302 shares of the company’s stock, valued at $361,543.38. The disclosure for this sale can be found here. 0.68% of the stock is owned by corporate insiders.
Several hedge funds and other institutional investors have recently made changes to their positions in the company. Eidelman Virant Capital increased its position in shares of Alaska Air Group by 8.8% in the third quarter. Eidelman Virant Capital now owns 348,000 shares of the company’s stock valued at $598,000 after buying an additional 28,000 shares during the last quarter. BKD Wealth Advisors LLC increased its position in shares of Alaska Air Group by 0.4% in the third quarter. BKD Wealth Advisors LLC now owns 4,133 shares of the company’s stock valued at $272,000 after buying an additional 18 shares during the last quarter. Parametrica Management Ltd acquired a new position in shares of Alaska Air Group during the third quarter valued at $227,000. Highland Capital Management LLC increased its position in shares of Alaska Air Group by 0.4% in the third quarter. Highland Capital Management LLC now owns 17,717 shares of the company’s stock valued at $1,167,000 after buying an additional 70 shares during the last quarter. Finally, MSI Financial Services Inc increased its position in shares of Alaska Air Group by 13.1% in the third quarter. MSI Financial Services Inc now owns 4,140 shares of the company’s stock valued at $273,000 after buying an additional 478 shares during the last quarter. 88.66% of the stock is owned by institutional investors and hedge funds.
Alaska Air Group Company Profile
Alaska Air Group, Inc is the holding company of Alaska Airlines (Alaska) and Horizon Air (Horizon). The Company operates through three segments: Alaska Mainline, Alaska Regional and Horizon. Its Alaska Mainline segment operates the Boeing 737 part of Alaska’s business. It offers north/south service within the western United States, Canada, Mexico and Costa Rica, as well as passenger and dedicated cargo services to and within the state of Alaska.
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