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

Alaska Air Group, Inc. (NYSE:ALK) gapped up before the market opened on Thursday following a stronger than expected earnings report. 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 for the quarter, topping the consensus estimate 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 last year, the firm earned ($0.62) EPS. Alaska Air Group’s quarterly revenue was up 1.6% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on ALK shares. Bank of America lifted their price objective on shares of Alaska Air Group from $50.00 to $56.00 and gave the stock a “buy” rating in a research note on Friday. StockNews.com upgraded shares of Alaska Air Group from a “sell” rating to a “hold” rating in a report on Friday. Melius downgraded shares of Alaska Air Group from a “buy” rating to a “hold” rating in a report on Monday, January 8th. Evercore ISI raised their target price on shares of Alaska Air Group from $55.00 to $65.00 and gave the stock an “outperform” rating in a report on Thursday, April 4th. Finally, UBS Group started coverage on shares of Alaska Air Group in a report on Wednesday, March 20th. They set a “buy” rating and a $54.00 target price on the stock. Four analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $57.85.

Insider Activity

In other news, EVP Andrew R. Harrison sold 6,500 shares of Alaska Air Group 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 sale, the executive vice president now directly owns 26,048 shares in the company, valued at $999,201.28. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 0.68% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Alaska Air Group

Hedge funds and other institutional investors have recently made changes to their positions in the company. Covestor Ltd grew its stake in shares of Alaska Air Group by 416.4% in the first quarter. Covestor Ltd now owns 568 shares of the transportation company’s stock valued at $33,000 after buying an additional 458 shares in the last quarter. Massmutual Trust Co. FSB ADV grew its stake in shares of Alaska Air Group by 215.8% in the fourth quarter. Massmutual Trust Co. FSB ADV now owns 761 shares of the transportation company’s stock valued at $30,000 after buying an additional 520 shares in the last quarter. Creative Financial Designs Inc. ADV grew its stake in shares of Alaska Air Group by 255.5% in the fourth quarter. Creative Financial Designs Inc. ADV now owns 775 shares of the transportation company’s stock valued at $30,000 after buying an additional 557 shares in the last quarter. Itau Unibanco Holding S.A. grew its stake in shares of Alaska Air Group by 456.1% in the third quarter. Itau Unibanco Holding S.A. now owns 912 shares of the transportation company’s stock valued at $34,000 after buying an additional 748 shares in the last quarter. Finally, Principal Securities Inc. bought a new position in shares of Alaska Air Group in the fourth quarter valued at $39,000. 81.90% of the stock is owned by institutional investors.

Alaska Air Group Stock Up 1.3 %

The company has a debt-to-equity ratio of 0.53, a current ratio of 0.61 and a quick ratio of 0.58. The firm’s 50 day moving average is $39.68 and its two-hundred day moving average is $37.22. The firm has a market capitalization of $5.66 billion, a P/E ratio of 24.87, a PEG 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.