Zacks Investment Research Lowers Alaska Air Group Inc. (ALK) to Sell
Alaska Air Group Inc. (NYSE:ALK) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and 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. “
A number of other equities research analysts have also recently commented on the company. Credit Suisse Group AG raised Alaska Air Group from a “neutral” rating to an “outperform” rating and raised their price objective for the company from $70.00 to $85.00 in a research note on Monday, July 25th. JPMorgan Chase & Co. raised Alaska Air Group from a “neutral” rating to an “overweight” rating and set a $78.50 price objective for the company in a research note on Wednesday, July 27th. Vetr cut Alaska Air Group from a “strong-buy” rating to a “buy” rating and set a $77.17 price objective for the company. in a research note on Tuesday, September 6th. Imperial Capital initiated coverage on Alaska Air Group in a research note on Friday, September 23rd. They issued an “in-line” rating and a $74.00 price objective for the company. Finally, Buckingham Research raised Alaska Air Group from a “neutral” rating to a “buy” rating and set a $84.00 price objective for the company in a research note on Thursday, October 13th. One investment analyst has rated the stock with a sell rating, four have issued a hold rating, ten have given a buy rating and one has given a strong buy rating to the company’s stock. Alaska Air Group currently has an average rating of “Buy” and a consensus target price of $86.30.
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Shares of Alaska Air Group (NYSE:ALK) traded up 0.75% during midday trading on Tuesday, hitting $72.48. The stock had a trading volume of 469,909 shares. The firm has a market cap of $8.92 billion, a P/E ratio of 10.04 and a beta of 0.89. The company’s 50 day moving average is $68.03 and its 200 day moving average is $67.61. Alaska Air Group has a 52 week low of $54.51 and a 52 week high of $87.17.
Alaska Air Group (NYSE:ALK) last released its earnings results on Thursday, July 21st. The company reported $2.12 EPS for the quarter, topping the consensus estimate of $2.09 by $0.03. Alaska Air Group had a return on equity of 36.88% and a net margin of 15.86%. The business earned $1.49 billion during the quarter, compared to analysts’ expectations of $1.50 billion. During the same quarter last year, the firm posted $1.76 earnings per share. The firm’s revenue was up 4.0% on a year-over-year basis. On average, equities analysts predict that Alaska Air Group will post $7.05 earnings per share for the current fiscal year.
In other Alaska Air Group news, Chairman Bradley D. Tilden sold 2,000 shares of the business’s stock in a transaction on Thursday, September 22nd. The stock was sold at an average price of $66.72, for a total value of $133,440.00. Following the sale, the chairman now directly owns 23,900 shares in the company, valued at $1,594,608. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, VP Mark G. Eliasen sold 4,560 shares of the business’s stock in a transaction on Friday, August 26th. The shares were sold at an average price of $68.19, for a total value of $310,946.40. Following the completion of the sale, the vice president now owns 5,302 shares in the company, valued at $361,543.38. The disclosure for this sale can be found here. 0.68% of the stock is owned by company insiders.
Several hedge funds have recently modified their holdings of ALK. Parametrica Management Ltd purchased a new stake in shares of Alaska Air Group during the third quarter valued at about $227,000. Highland Capital Management LLC boosted 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 period. MSI Financial Services Inc boosted 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 period. Prospera Financial Services Inc bought a new position in shares of Alaska Air Group during the third quarter valued at $216,000. Finally, Nisa Investment Advisors LLC boosted its position in shares of Alaska Air Group by 64.1% in the third quarter. Nisa Investment Advisors LLC now owns 32,000 shares of the company’s stock valued at $2,108,000 after buying an additional 12,500 shares during the period. Hedge funds and other institutional investors own 88.66% of the company’s stock.
About Alaska Air Group
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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