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

Alaska Air Group, Inc. (NYSE:ALK)’s stock price gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. 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 trading hands.

The transportation company reported ($0.92) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 business had revenue of $2.23 billion for the quarter, compared to analyst estimates of $2.18 billion. During the same quarter in the previous year, the business earned ($0.62) earnings per share. The firm’s revenue was up 1.6% compared to the same quarter last year.

Analysts Set New Price Targets

Several research firms have weighed in on ALK. Bank of America upped their price objective on shares of Alaska Air Group from $50.00 to $56.00 and gave the company a “buy” rating in a research note on Friday. TD Cowen upped their price objective on shares of Alaska Air Group from $49.00 to $58.00 and gave the company a “buy” rating in a research note on Friday. Melius lowered shares of Alaska Air Group from a “buy” rating to a “hold” rating in a research note on Monday, January 8th. StockNews.com upgraded shares of Alaska Air Group from a “sell” rating to a “hold” rating in a research note on Friday. Finally, Susquehanna upped their price objective on shares of Alaska Air Group from $40.00 to $42.00 and gave the company a “neutral” rating in a research note on Friday. Four equities research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $57.85.

Insiders Place Their Bets

In other Alaska Air Group news, EVP Andrew R. Harrison sold 6,500 shares of the business’s stock in a transaction that occurred on Wednesday, February 28th. The shares were sold at an average price of $38.36, for a total value of $249,340.00. Following the completion of the sale, the executive vice president now directly owns 26,048 shares of the company’s stock, valued at $999,201.28. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.68% of the company’s stock.

Institutional Trading of Alaska Air Group

Large investors have recently modified their holdings of the company. Massmutual Trust Co. FSB ADV boosted its holdings in shares of Alaska Air Group by 215.8% during the 4th quarter. Massmutual Trust Co. FSB ADV now owns 761 shares of the transportation company’s stock worth $30,000 after buying an additional 520 shares during the period. Creative Financial Designs Inc. ADV boosted its holdings in shares of Alaska Air Group by 255.5% during the 4th quarter. Creative Financial Designs Inc. ADV now owns 775 shares of the transportation company’s stock worth $30,000 after buying an additional 557 shares during the period. Covestor Ltd boosted its holdings in shares of Alaska Air Group by 416.4% during the 1st quarter. Covestor Ltd now owns 568 shares of the transportation company’s stock worth $33,000 after buying an additional 458 shares during the period. Itau Unibanco Holding S.A. boosted its holdings in shares of Alaska Air Group by 456.1% during the 3rd quarter. Itau Unibanco Holding S.A. now owns 912 shares of the transportation company’s stock worth $34,000 after buying an additional 748 shares during the period. Finally, Principal Securities Inc. bought a new stake in shares of Alaska Air Group during the 4th quarter worth $39,000. 81.90% of the stock is owned by institutional investors.

Alaska Air Group Trading 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’s fifty day moving average is $39.68 and its 200-day moving average is $37.22. The firm has a market capitalization of $5.66 billion, a P/E ratio of 24.87, a P/E/G ratio of 0.86 and a beta of 1.63.

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.