Alaska Air Group, Inc. (ALK) Stock Price Down 2.6% on Disappointing Earnings

Shares of Alaska Air Group, Inc. (NYSE:ALK) dropped 2.6% on Thursday following a weaker than expected earnings announcement. The company traded as low as $68.10 and last traded at $67.13. Approximately 2,742,894 shares changed hands during trading, an increase of 71% from the average daily volume of 1,606,930 shares. The stock had previously closed at $68.92.

The transportation company reported $2.24 EPS for the quarter, missing the consensus estimate of $2.26 by ($0.02). The business had revenue of $2.12 billion for the quarter, compared to the consensus estimate of $2.13 billion. Alaska Air Group had a return on equity of 28.74% and a net margin of 10.34%. Alaska Air Group’s revenue for the quarter was up 35.4% on a year-over-year basis. During the same quarter in the previous year, the company posted $2.20 EPS.

ALK has been the topic of several research analyst reports. Bank of America Corporation decreased their target price on Alaska Air Group from $100.00 to $96.00 and set a “buy” rating on the stock in a report on Friday, October 13th. BidaskClub cut Alaska Air Group from a “hold” rating to a “sell” rating in a report on Thursday, July 27th. Morgan Stanley decreased their target price on Alaska Air Group from $103.00 to $102.00 and set an “overweight” rating on the stock in a report on Monday, July 17th. Stifel Nicolaus decreased their target price on Alaska Air Group from $125.00 to $115.00 and set a “buy” rating on the stock in a report on Thursday. Finally, Macquarie initiated coverage on Alaska Air Group in a report on Monday, September 25th. They set an “outperform” rating and a $94.00 target price on the stock. Two equities research analysts have rated the stock with a sell rating, one has issued a hold rating, ten have issued a buy rating and one has assigned a strong buy rating to the company’s stock. The stock currently has an average rating of “Buy” and a consensus target price of $95.58.

In other Alaska Air Group news, Chairman Bradley D. Tilden sold 2,400 shares of the stock in a transaction dated Tuesday, August 8th. The stock was sold at an average price of $85.83, for a total value of $205,992.00. Following the transaction, the chairman now owns 140,346 shares of the company’s stock, valued at $12,045,897.18. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Andrew R. Harrison sold 2,350 shares of the stock in a transaction dated Monday, August 7th. The shares were sold at an average price of $86.03, for a total value of $202,170.50. Following the completion of the transaction, the executive vice president now directly owns 21,328 shares in the company, valued at approximately $1,834,847.84. The disclosure for this sale can be found here. 0.57% of the stock is owned by company insiders.

A number of large investors have recently added to or reduced their stakes in ALK. Thrivent Financial For Lutherans lifted its stake in Alaska Air Group by 6.6% in the first quarter. Thrivent Financial For Lutherans now owns 4,530 shares of the transportation company’s stock valued at $418,000 after buying an additional 280 shares during the period. Credit Suisse AG lifted its stake in Alaska Air Group by 8.9% in the first quarter. Credit Suisse AG now owns 263,428 shares of the transportation company’s stock valued at $24,295,000 after buying an additional 21,569 shares during the period. Cypress Wealth Advisors LLC lifted its stake in Alaska Air Group by 1.3% in the first quarter. Cypress Wealth Advisors LLC now owns 3,571 shares of the transportation company’s stock valued at $329,000 after buying an additional 45 shares during the period. Janus Capital Management LLC lifted its stake in Alaska Air Group by 3,526.6% in the first quarter. Janus Capital Management LLC now owns 140,458 shares of the transportation company’s stock valued at $12,953,000 after buying an additional 136,585 shares during the period. Finally, Brighton Jones LLC acquired a new position in Alaska Air Group in the first quarter valued at about $697,000. 87.33% of the stock is currently owned by hedge funds and other institutional investors.

The company has a market cap of $8.08 billion, a PE ratio of 10.63 and a beta of 0.99. The firm’s 50-day moving average is $77.06 and its 200-day moving average is $83.83.

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Alaska Air Group Company Profile

Alaska Air Group, Inc is the holding company of Alaska Airlines (Alaska), Virgin America Inc, Horizon Air (Horizon) and other business units. The Company operates through three segments: Mainline, Regional and Horizon. Its Mainline segment includes Alaska’s and Virgin America’s scheduled air transportation for passengers and cargo throughout the United States, and in parts of Canada, Mexico, Costa Rica and Cuba.

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