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

Alaska Air Group, Inc. (NYSE:ALK) shares gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $67.40, but opened at $69.76. Alaska Air Group shares last traded at $70.96, with a volume of 1,113,132 shares.

The transportation company reported $0.97 EPS for the quarter, beating analysts’ consensus estimates of $0.45 by $0.52. Alaska Air Group had a return on equity of 12.81% and a net margin of 2.99%.

Wall Street Analyst Weigh In

A number of research firms have commented on ALK. Bank of America raised their price target on Alaska Air Group from $70.00 to $80.00 and gave the company a “buy” rating in a report on Friday, January 17th. TD Cowen lifted their target price on Alaska Air Group from $68.00 to $78.00 and gave the stock a “buy” rating in a report on Wednesday, December 11th. Evercore ISI reduced their target price on Alaska Air Group from $60.00 to $55.00 and set an “outperform” rating on the stock in a report on Thursday, October 3rd. JPMorgan Chase & Co. lifted their target price on Alaska Air Group from $58.00 to $85.00 and gave the stock an “overweight” rating in a report on Wednesday, December 11th. Finally, Barclays lifted their target price on Alaska Air Group from $55.00 to $80.00 and gave the stock an “overweight” rating in a report on Thursday, November 14th. One equities research analyst has rated the stock with a hold rating and fourteen have issued a buy rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $72.57.

Insiders Place Their Bets

In other Alaska Air Group news, CEO Joseph A. Sprague sold 2,325 shares of the business’s stock in a transaction that occurred on Wednesday, December 18th. The stock was sold at an average price of $64.38, for a total transaction of $149,683.50. Following the completion of the transaction, the chief executive officer now owns 19,340 shares in the company, valued at $1,245,109.20. The trade was a 10.73 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, SVP Andrea L. Schneider sold 800 shares of the business’s stock in a transaction that occurred on Thursday, December 19th. The shares were sold at an average price of $63.89, for a total value of $51,112.00. Following the transaction, the senior vice president now owns 20,286 shares of the company’s stock, valued at $1,296,072.54. This trade represents a 3.79 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 34,473 shares of company stock valued at $2,198,342 over the last ninety days. 0.68% of the stock is owned by insiders.

Institutional Trading of Alaska Air Group

A number of large investors have recently modified their holdings of ALK. Hennessy Advisors Inc. bought a new stake in Alaska Air Group during the 4th quarter valued at $82,459,000. Assenagon Asset Management S.A. boosted its position in Alaska Air Group by 2,087.8% during the 3rd quarter. Assenagon Asset Management S.A. now owns 762,889 shares of the transportation company’s stock valued at $34,490,000 after acquiring an additional 728,019 shares in the last quarter. Wellington Management Group LLP bought a new stake in Alaska Air Group during the 3rd quarter valued at $26,390,000. Charles Schwab Investment Management Inc. boosted its position in Alaska Air Group by 45.1% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 1,422,247 shares of the transportation company’s stock valued at $64,300,000 after acquiring an additional 442,331 shares in the last quarter. Finally, FMR LLC boosted its position in Alaska Air Group by 32.4% during the 3rd quarter. FMR LLC now owns 1,084,639 shares of the transportation company’s stock valued at $49,037,000 after acquiring an additional 265,343 shares in the last quarter. Hedge funds and other institutional investors own 81.90% of the company’s stock.

Alaska Air Group Price Performance

The company has a current ratio of 0.60, a quick ratio of 0.57 and a debt-to-equity ratio of 0.93. The firm has a market cap of $8.72 billion, a P/E ratio of 27.71, a PEG ratio of 0.61 and a beta of 1.54. The firm has a 50-day simple moving average of $61.44 and a 200-day simple moving average of $48.06.

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.