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

Alaska Air Group (NYSE:ALKGet Rating) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Wednesday, Zacks.com reports. They currently have a $46.00 price objective on the transportation company’s stock. Zacks Investment Research‘s target price suggests a potential upside of 1.59% from the company’s previous close.

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.”

Several other research firms have also weighed in on ALK. Wolfe Research began coverage on Alaska Air Group in a research report on Tuesday, February 15th. They set an “outperform” rating and a $67.00 price target on the stock. Morgan Stanley decreased their price objective on Alaska Air Group from $78.00 to $75.00 and set an “overweight” rating on the stock in a report on Friday, March 25th. JPMorgan Chase & Co. upped their target price on Alaska Air Group from $97.00 to $103.00 and gave the company an “overweight” rating in a research report on Friday, April 22nd. StockNews.com initiated coverage on Alaska Air Group in a research report on Thursday, March 31st. They set a “hold” rating for the company. Finally, Cowen upped their price objective on Alaska Air Group from $66.00 to $85.00 and gave the stock an “outperform” rating in a research report on Friday, March 25th. Two research analysts have rated the stock with a hold rating, five have assigned a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Buy” and a consensus target price of $74.13.

Shares of NYSE ALK traded up $1.07 during midday trading on Wednesday, reaching $45.28. 14,604 shares of the company traded hands, compared to its average volume of 2,102,331. The firm has a market cap of $5.71 billion, a PE ratio of 12.35 and a beta of 1.43. The stock’s 50-day simple moving average is $53.22 and its 200-day simple moving average is $53.33. Alaska Air Group has a 12 month low of $43.39 and a 12 month high of $70.90. 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 (NYSE:ALKGet Rating) last announced its quarterly earnings data on Thursday, April 21st. The transportation company reported ($1.33) EPS for the quarter, topping analysts’ consensus estimates of ($1.58) by $0.25. Alaska Air Group had a return on equity of 0.36% and a net margin of 6.60%. The firm had revenue of $1.68 billion during the quarter, compared to analyst estimates of $1.66 billion. During the same period last year, the company earned ($3.51) earnings per share. The company’s revenue was up 110.9% on a year-over-year basis. On average, equities research analysts expect that Alaska Air Group will post 3.92 EPS for the current year.

A number of large investors have recently made changes to their positions in the stock. Advisory Services Network LLC grew its holdings in shares of Alaska Air Group by 64.5% during the 1st quarter. Advisory Services Network LLC now owns 9,262 shares of the transportation company’s stock worth $537,000 after acquiring an additional 3,633 shares during the period. Neuberger Berman Group LLC purchased a new stake in shares of Alaska Air Group in the 1st quarter worth approximately $546,000. Toroso Investments LLC purchased a new stake in shares of Alaska Air Group in the 1st quarter worth approximately $244,000. Penobscot Wealth Management grew its stake in shares of Alaska Air Group by 24.3% in the 1st quarter. Penobscot Wealth Management now owns 9,964 shares of the transportation company’s stock worth $578,000 after buying an additional 1,949 shares during the last quarter. Finally, MidWestOne Financial Group Inc. grew its stake in shares of Alaska Air Group by 22.5% in the 1st quarter. MidWestOne Financial Group Inc. now owns 34,524 shares of the transportation company’s stock worth $2,003,000 after buying an additional 6,335 shares during the last quarter. Institutional investors own 72.26% of the company’s stock.

About Alaska Air Group (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.

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