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 $67.40, but opened at $69.76. Alaska Air Group shares last traded at $70.96, with a volume of 1,113,132 shares changing hands.

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%.

Analysts Set New Price Targets

Several equities analysts recently commented on the stock. UBS Group upped their price target on shares of Alaska Air Group from $81.00 to $82.00 and gave the company a “buy” rating in a report on Tuesday, January 7th. Citigroup raised their price target on shares of Alaska Air Group from $63.00 to $74.00 and gave the stock a “buy” rating in a research note on Monday, December 16th. Morgan Stanley upped their target price on Alaska Air Group from $70.00 to $90.00 and gave the stock an “overweight” rating in a report on Wednesday, December 11th. TD Cowen raised their price target on Alaska Air Group from $68.00 to $78.00 and gave the company a “buy” rating in a research note on Wednesday, December 11th. Finally, Bank of America upped their price objective on shares of Alaska Air Group from $70.00 to $80.00 and gave the stock a “buy” rating in a research note on Friday, January 17th. One investment analyst has rated the stock with a hold rating and fourteen have assigned a buy rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $72.57.

Insider Transactions at Alaska Air Group

In other Alaska Air Group news, CFO Shane R. Tackett sold 5,000 shares of Alaska Air Group stock in a transaction that occurred on Wednesday, December 11th. The shares were sold at an average price of $63.56, for a total transaction of $317,800.00. Following the completion of the sale, the chief financial officer now directly owns 27,362 shares in the company, valued at approximately $1,739,128.72. The trade was a 15.45 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, EVP Andrew R. Harrison sold 13,880 shares of the company’s stock in a transaction on Wednesday, December 11th. The shares were sold at an average price of $64.01, for a total transaction of $888,458.80. Following the completion of the sale, the executive vice president now directly owns 20,638 shares in the company, valued at $1,321,038.38. This trade represents a 40.21 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 34,473 shares of company stock worth $2,198,342. Company insiders own 0.68% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Avior Wealth Management LLC raised its stake in shares of Alaska Air Group by 44.8% during the 4th quarter. Avior Wealth Management LLC now owns 588 shares of the transportation company’s stock valued at $38,000 after buying an additional 182 shares during the last quarter. Verdence Capital Advisors LLC lifted its holdings in Alaska Air Group by 2.2% in the third quarter. Verdence Capital Advisors LLC now owns 10,180 shares of the transportation company’s stock valued at $460,000 after acquiring an additional 215 shares during the period. QRG Capital Management Inc. boosted its position in Alaska Air Group by 2.7% in the 3rd quarter. QRG Capital Management Inc. now owns 9,271 shares of the transportation company’s stock worth $419,000 after purchasing an additional 242 shares in the last quarter. First Trust Direct Indexing L.P. grew its stake in shares of Alaska Air Group by 4.7% during the 3rd quarter. First Trust Direct Indexing L.P. now owns 5,938 shares of the transportation company’s stock worth $268,000 after purchasing an additional 267 shares during the period. Finally, Coastwise Capital Group LLC increased its holdings in shares of Alaska Air Group by 6.0% during the 3rd quarter. Coastwise Capital Group LLC now owns 5,354 shares of the transportation company’s stock valued at $242,000 after purchasing an additional 304 shares in the last quarter. 81.90% of the stock is currently owned by institutional investors and hedge funds.

Alaska Air Group Stock Performance

The firm’s 50 day moving average is $61.13 and its 200-day moving average is $47.91. The stock has a market capitalization of $9.02 billion, a price-to-earnings ratio of 28.76, a PEG ratio of 0.61 and a beta of 1.54. The company has a debt-to-equity ratio of 0.93, a quick ratio of 0.57 and a current ratio of 0.60.

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.