Alaska Air Group Receives Price Target Increase from UBS Group

Alaska Air Group (NYSE:ALK) recently saw its target price revised upward by analysts at UBS Group. In a report released on Tuesday, the target price was lifted from $81.00 to $82.00, while maintaining a "buy" rating for the stock. This new target suggests an anticipated upside of approximately 27.27% based on the stock's previous closing price.

In addition to UBS Group's revision, Alaska Air Group has attracted attention from several other research firms. Melius recently upgraded its rating from a "hold" to a "buy" and set a target price of $56.00 for the shares. Morgan Stanley also adjusted its price objective, raising it from $70.00 to $90.00, while designating an "overweight" rating in a note published on December 11th.

Another notable change came from JPMorgan Chase & Co., which raised its target price for Alaska Air Group from $58.00 to $85.00, also assigning an "overweight" rating on the same day. Citigroup joined the list of analysts with a bullish outlook, increasing its price target from $63.00 to $74.00, resulting in a "buy" rating given on December 16th. Meanwhile, Evercore ISI lowered its target from $60.00 to $55.00 but still holds an "outperform" rating for the stock.

Currently, one investment analyst has rated Alaska Air Group with a hold rating, whereas fourteen have issued buy ratings. According to data compiled from MarketBeat.com, the consensus rating for the stock is classified as "Moderate Buy," with an average price target resting at $70.14.

Current Performance of Alaska Air Group

As of Tuesday, shares of Alaska Air Group opened at $64.43. Over the past year, the stock has experienced a low of $32.62 and a high of $67.73. The current 50-day moving average price stands at $56.98, while the 200-day moving average is $45.73. The company’s financial standing includes a debt-to-equity ratio of 0.93, a quick ratio of 0.57, and a current ratio of 0.60. Alaska Air Group boasts a market capitalization of $8.18 billion, a price-to-earnings (P/E) ratio of 25.98, and a P/E growth (P/E/G) ratio of 1.24, with a beta of 1.54.

Recent Earnings Report

Alaska Air Group released its latest earnings results on October 31st, where it reported a quarterly earnings per share (EPS) of $2.25. This figure surpassed the consensus estimate of $2.22 by $0.03. The company enjoyed a return on equity of 12.81% and a net margin of 2.99%. Revenue for the quarter reached $3.07 billion, exceeding analysts’ expectations of $3.00 billion. Comparatively, this revenue reflects an 8.2% increase from the same period last year. Market analysts predict that Alaska Air Group will achieve an EPS of 4.3 for the current fiscal year.

Insider Transactions

In related news, insider trading activity has been noted, with SVP Andrea L. Schneider selling 800 shares of the company's stock on December 19th at an average price of $63.89, amounting to a total transaction value of $51,112.00. Following this sale, Schneider retains ownership of 20,286 shares in Alaska Air Group. Additionally, CEO Joseph A. Sprague sold 2,325 shares on December 18th at an average price of $64.38, totaling $149,683.50. After this sale, Sprague's holdings comprise 19,340 shares, valued at a total of $1,245,109.20. Over the last three months, insiders have sold a total of 34,473 shares worth approximately $2,198,342, with 0.68% of the stock still held by insiders.

Institutional Investors' Activity

Many institutional investors and hedge funds have recently adjusted their positions in Alaska Air Group. Natixis Advisors LLC acquired a new position in the second quarter, valued around $501,000. Similarly, TD Asset Management Inc. made a new investment valued at $1,454,000 during the same period, while Choreo LLC obtained a stake worth $281,000. American Century Companies Inc. grew its stake by 8.3% during the second quarter, now owning 1,590,078 shares valued at $64,239,000 after purchasing an additional 122,325 shares. Finally, Qsemble Capital Management LP added a new position valued at approximately $1,833,000. Currently, institutional investors collectively hold 81.90% of the company's stock.

About Alaska Air Group

Alaska Air Group, Inc., through its subsidiaries, operates various airlines in the aviation sector. The company functions through three segments: Mainline, Regional, and Horizon. It provides scheduled air travel services for both passengers and cargo utilizing Boeing jet aircraft, covering destinations across the United States and portions of Canada, Mexico, Costa Rica, Belize, Guatemala, and the Bahamas, as well as shorter distance networks within these regions.

Alaska, Air, UBS