Alaska Air Group (NYSE:ALK) Shares Gap Up After Earnings Beat

Alaska Air Group, Inc. (NYSE:ALK)’s share price gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $42.72, but opened at $44.12. Alaska Air Group shares last traded at $43.80, with a volume of 623,963 shares changing hands.

The transportation company reported ($0.92) earnings per share (EPS) for the quarter, topping the consensus estimate of ($1.09) by $0.17. Alaska Air Group had a net margin of 2.25% and a return on equity of 14.72%. The firm had revenue of $2.23 billion during the quarter, compared to analysts’ expectations of $2.18 billion. During the same quarter last year, the company posted ($0.62) earnings per share. The firm’s revenue was up 1.6% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on ALK. Deutsche Bank Aktiengesellschaft raised shares of Alaska Air Group from a “hold” rating to a “buy” rating and lifted their price objective for the company from $44.00 to $51.00 in a report on Tuesday, February 20th. Bank of America lifted their price objective on shares of Alaska Air Group from $50.00 to $56.00 and gave the company a “buy” rating in a report on Friday. Melius cut shares of Alaska Air Group from a “buy” rating to a “hold” rating in a report on Monday, January 8th. Evercore ISI lifted their price objective on shares of Alaska Air Group from $55.00 to $65.00 and gave the company an “outperform” rating in a report on Thursday, April 4th. Finally, TD Cowen boosted their target price on shares of Alaska Air Group from $49.00 to $58.00 and gave the stock a “buy” rating in a research note on Friday. Four analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $57.85.

Insider Buying and Selling

In related news, EVP Andrew R. Harrison sold 6,500 shares of the business’s stock in a transaction dated Wednesday, February 28th. The shares were sold at an average price of $38.36, for a total transaction of $249,340.00. Following the transaction, the executive vice president now directly owns 26,048 shares in the company, valued at $999,201.28. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.68% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Alaska Air Group

Institutional investors and hedge funds have recently bought and sold shares of the business. Covestor Ltd boosted its position in Alaska Air Group by 416.4% during the first quarter. Covestor Ltd now owns 568 shares of the transportation company’s stock worth $33,000 after acquiring an additional 458 shares during the last quarter. Massmutual Trust Co. FSB ADV boosted its holdings in Alaska Air Group by 215.8% in the 4th quarter. Massmutual Trust Co. FSB ADV now owns 761 shares of the transportation company’s stock valued at $30,000 after purchasing an additional 520 shares during the last quarter. Creative Financial Designs Inc. ADV boosted its holdings in Alaska Air Group by 255.5% in the 4th quarter. Creative Financial Designs Inc. ADV now owns 775 shares of the transportation company’s stock valued at $30,000 after purchasing an additional 557 shares during the last quarter. Itau Unibanco Holding S.A. boosted its holdings in Alaska Air Group by 456.1% in the 3rd quarter. Itau Unibanco Holding S.A. now owns 912 shares of the transportation company’s stock valued at $34,000 after purchasing an additional 748 shares during the last quarter. Finally, Principal Securities Inc. acquired a new position in Alaska Air Group in the 4th quarter valued at about $39,000. 81.90% of the stock is currently owned by institutional investors and hedge funds.

Alaska Air Group Stock Up 1.3 %

The company has a current ratio of 0.61, a quick ratio of 0.58 and a debt-to-equity ratio of 0.53. The company has a market capitalization of $5.66 billion, a price-to-earnings ratio of 24.87, a price-to-earnings-growth ratio of 0.86 and a beta of 1.63. The firm’s fifty day simple moving average is $39.68 and its two-hundred day simple moving average is $37.22.

About Alaska Air Group

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.