Allegiant Travel (NASDAQ:ALGT) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Tuesday. The brokerage presently has a $178.00 price target on the transportation company’s stock. Zacks Investment Research‘s price objective suggests a potential upside of 12.62% from the stock’s current price.
According to Zacks, “Shares of Allegiant have outperformed its industry over the last three months. Ushering in further good news, the company reported better-than-expected earnings per share and revenues in the fourth quarter of 2017. Moreover, both metrics improved year over year. Results were aided by strong demand for air travel. We are also impressed by the company’s efforts to reward shareholders. Additionally, Allegiant’s initiatives to modernize its fleet raise optimism in the stock. The company aims to maintain an all-airbus fleet by year-end. Increased fuel and labor costs, however, are hurting the bottom line. In the fourth quarter of 2017, labor costs increased 20.2% year over year.”
Other analysts have also issued research reports about the stock. Morgan Stanley decreased their target price on shares of Allegiant Travel from $158.00 to $157.00 and set an “equal weight” rating on the stock in a report on Monday. BidaskClub lowered shares of Allegiant Travel from a “buy” rating to a “hold” rating in a report on Tuesday, January 9th. Stifel Nicolaus increased their price target on shares of Allegiant Travel from $200.00 to $210.00 and gave the stock a “buy” rating in a report on Thursday, February 1st. Wolfe Research raised shares of Allegiant Travel from a “market perform” rating to an “outperform” rating in a report on Thursday, February 1st. Finally, Buckingham Research lowered shares of Allegiant Travel from a “buy” rating to a “neutral” rating in a report on Monday, December 4th. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating and seven have issued a buy rating to the company. The company currently has an average rating of “Hold” and an average target price of $163.27.
Allegiant Travel (NASDAQ:ALGT) last posted its earnings results on Wednesday, January 31st. The transportation company reported $2.71 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.78 by $0.93. The business had revenue of $378.56 million for the quarter, compared to analyst estimates of $377.25 million. Allegiant Travel had a net margin of 12.96% and a return on equity of 32.60%. Allegiant Travel’s revenue was up 12.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.48 EPS. research analysts anticipate that Allegiant Travel will post 10.97 earnings per share for the current year.
In other Allegiant Travel news, CEO Maurice J. Gallagher, Jr. sold 182,182 shares of the stock in a transaction on Wednesday, January 17th. The shares were sold at an average price of $167.18, for a total transaction of $30,457,186.76. Following the completion of the sale, the chief executive officer now owns 3,071,196 shares of the company’s stock, valued at approximately $513,442,547.28. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Gary Ellmer sold 1,000 shares of the stock in a transaction on Wednesday, December 6th. The shares were sold at an average price of $148.85, for a total transaction of $148,850.00. Following the sale, the director now directly owns 2,120 shares of the company’s stock, valued at approximately $315,562. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 288,696 shares of company stock worth $47,742,513. 22.00% of the stock is owned by insiders.
A number of institutional investors and hedge funds have recently made changes to their positions in ALGT. Flinton Capital Management LLC boosted its position in Allegiant Travel by 81.8% during the 2nd quarter. Flinton Capital Management LLC now owns 1,120 shares of the transportation company’s stock valued at $152,000 after buying an additional 504 shares during the period. Ladenburg Thalmann Financial Services Inc. boosted its position in Allegiant Travel by 47.0% during the 3rd quarter. Ladenburg Thalmann Financial Services Inc. now owns 1,258 shares of the transportation company’s stock valued at $166,000 after buying an additional 402 shares during the period. McKinley Carter Wealth Services Inc. purchased a new stake in Allegiant Travel during the 4th quarter valued at $233,000. Amalgamated Bank boosted its position in Allegiant Travel by 4.4% during the 2nd quarter. Amalgamated Bank now owns 1,823 shares of the transportation company’s stock valued at $247,000 after buying an additional 77 shares during the period. Finally, Nomura Holdings Inc. purchased a new stake in Allegiant Travel during the 2nd quarter valued at $327,000. 85.90% of the stock is owned by institutional investors and hedge funds.
About Allegiant Travel
Allegiant Travel Company is a leisure travel company. The Company is focused on providing travel services and products to residents of under-served cities in the United States. It also provides air transportation under fixed fee flying arrangements. The Company’s products and services include scheduled service air transportation, air-related ancillary products and services, third-party ancillary products and services and fixed fee contract air transportation.
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