Zacks Investment Research Downgrades Alaska Air Group (NYSE:ALK) to Hold

Zacks Investment Research lowered shares of Alaska Air Group (NYSE:ALKGet Rating) from a buy rating to a hold rating in a research report report published on Wednesday, Zacks.com reports. They currently have $46.00 target price on the transportation company’s stock.

According to Zacks, “Alaska Air is seeing steady improvement in both leisure and business travel demand. While leisure demand has fully recovered, business demand has reached 70% of 2019 levels. With strength in demand, ALK expects double-digit growth in yield and unit revenues in the June quarter from second-quarter 2019 levels. ALK expects to reap profits from the second quarter onward through 2022. Alaska Air’s fleet modernization efforts to take advantage of the recovery in demand are encouraging. However, escalating fuel prices pose a threat to ALK’s bottom line. With spike in fuel prices, the carrier reduced capacity expectations for 2022 (down up to 3% to flat from 2019). Reduced capacity is pushing up non-fuel unit costs. For 2022, non-fuel unit costs are likely to rise 6-8% from the 2019 level. ALK’s declining current ratio is also a woe.”

Other equities analysts have also issued research reports about the stock. StockNews.com began coverage on shares of Alaska Air Group in a report on Thursday, March 31st. They issued a hold rating on the stock. Cowen lifted their price target on shares of Alaska Air Group from $66.00 to $85.00 and gave the company an outperform rating in a report on Friday, March 25th. Wolfe Research began coverage on shares of Alaska Air Group in a report on Tuesday, February 15th. They issued an outperform rating and a $67.00 price target on the stock. Morgan Stanley decreased their price target on shares of Alaska Air Group from $78.00 to $75.00 and set an overweight rating on the stock in a report on Friday, March 25th. Finally, JPMorgan Chase & Co. lifted their price target on shares of Alaska Air Group from $97.00 to $103.00 and gave the company an overweight rating in a report on Friday, April 22nd. Two analysts have rated the stock with a hold rating, five have given a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat.com, Alaska Air Group currently has a consensus rating of Buy and an average price target of $74.13.

ALK stock opened at $48.43 on Wednesday. The stock has a market capitalization of $6.11 billion, a P/E ratio of 13.16 and a beta of 1.43. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.85 and a current ratio of 0.87. Alaska Air Group has a one year low of $43.39 and a one year high of $70.90. The company has a 50 day moving average price of $52.74 and a two-hundred day moving average price of $53.09.

Alaska Air Group (NYSE:ALKGet Rating) last released its earnings results on Thursday, April 21st. The transportation company reported ($1.33) EPS for the quarter, topping the consensus estimate of ($1.58) by $0.25. The firm had revenue of $1.68 billion during the quarter, compared to analysts’ expectations of $1.66 billion. Alaska Air Group had a net margin of 6.60% and a return on equity of 0.36%. Alaska Air Group’s revenue for the quarter was up 110.9% on a year-over-year basis. During the same period in the previous year, the company earned ($3.51) EPS. Research analysts forecast that Alaska Air Group will post 3.92 earnings per share for the current fiscal year.

Large investors have recently bought and sold shares of the stock. Eagle Bay Advisors LLC lifted its holdings in shares of Alaska Air Group by 266.7% during the 3rd quarter. Eagle Bay Advisors LLC now owns 506 shares of the transportation company’s stock valued at $30,000 after acquiring an additional 368 shares in the last quarter. Covestor Ltd lifted its holdings in Alaska Air Group by 416.4% in the 1st quarter. Covestor Ltd now owns 568 shares of the transportation company’s stock worth $33,000 after buying an additional 458 shares in the last quarter. Capital Advisory Group Advisory Services LLC acquired a new position in Alaska Air Group in the 1st quarter worth $38,000. Crewe Advisors LLC lifted its holdings in Alaska Air Group by 10,750.0% in the 1st quarter. Crewe Advisors LLC now owns 651 shares of the transportation company’s stock worth $38,000 after buying an additional 645 shares in the last quarter. Finally, Dark Forest Capital Management LP lifted its holdings in Alaska Air Group by 5,716.7% in the 3rd quarter. Dark Forest Capital Management LP now owns 698 shares of the transportation company’s stock worth $41,000 after buying an additional 686 shares in the last quarter. Institutional investors and hedge funds own 72.26% of the company’s stock.

Alaska Air Group Company Profile (Get Rating)

Alaska Air Group, Inc, through its subsidiaries, provides passenger and cargo air transportation services. The company operates through three segments: Mainline, Regional, and Horizon. It flies to approximately 120 destinations throughout North America. Alaska Air Group, Inc was founded in 1932 and is based in Seattle, Washington.

Featured Articles

Get a free copy of the Zacks research report on Alaska Air Group (ALK)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Alaska Air Group (NYSE:ALK)

Receive News & Ratings for Alaska Air Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Alaska Air Group and related companies with MarketBeat.com's FREE daily email newsletter.