Allegiant Travel (NASDAQ:ALGT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Tuesday.
According to Zacks, “Shares of Allegiant have outperformed its industry over the last three months. Ushering in further good news, the company reported better-than-expected earnings per share and revenues in the fourth quarter of 2017. Moreover, both metrics improved year over year. Results were aided by strong demand for air travel. Additionally, Allegiant’s initiatives to modernize its fleet raise optimism in the stock. The company aims to maintain an all-airbus fleet by year-end. However, increased fuel and labor costs are hurting the bottom line growth. In the fourth quarter of 2017, labor costs increased 20.2% year over year. Additionally capacity overexpansion also raises concerns. Allegiant is also a highly leveraged company.”
Several other research firms have also commented on ALGT. Wolfe Research upgraded shares of Allegiant Travel from a “market perform” rating to an “outperform” rating in a research report on Thursday, February 1st. Imperial Capital reiterated an “in-line” rating and issued a $165.00 price objective (up from $150.00) on shares of Allegiant Travel in a research report on Thursday, February 1st. BidaskClub upgraded shares of Allegiant Travel from a “hold” rating to a “buy” rating in a research report on Thursday, January 18th. Stifel Nicolaus upgraded shares of Allegiant Travel from a “hold” rating to a “buy” rating and boosted their price objective for the stock from $150.00 to $200.00 in a research report on Tuesday, January 16th. Finally, Morgan Stanley reduced their target price on shares of Allegiant Travel from $158.00 to $157.00 and set an “equal weight” rating on the stock in a report on Monday, February 5th. One research analyst has rated the stock with a sell rating, eight have issued a hold rating and seven have issued a buy rating to the company. The company presently has a consensus rating of “Hold” and a consensus price target of $163.27.
Shares of Allegiant Travel (NASDAQ ALGT) traded down $0.50 on Tuesday, reaching $167.00. 80,700 shares of the company’s stock traded hands, compared to its average volume of 174,108. The company has a quick ratio of 1.01, a current ratio of 1.05 and a debt-to-equity ratio of 1.78. The firm has a market cap of $2,680.00, a PE ratio of 17.77, a P/E/G ratio of 0.52 and a beta of 0.17. Allegiant Travel has a 12 month low of $111.54 and a 12 month high of $178.20.
Allegiant Travel (NASDAQ:ALGT) last announced its quarterly earnings data on Wednesday, January 31st. The transportation company reported $2.71 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.78 by $0.93. The company had revenue of $378.56 million for the quarter, compared to analysts’ expectations of $377.25 million. Allegiant Travel had a net margin of 12.96% and a return on equity of 32.60%. Allegiant Travel’s revenue was up 12.7% compared to the same quarter last year. During the same period in the previous year, the company posted $2.48 EPS. sell-side analysts anticipate that Allegiant Travel will post 10.96 EPS for the current fiscal year.
In related news, CEO Maurice J. Gallagher, Jr. sold 71,678 shares of the stock in a transaction that occurred on Friday, January 12th. The shares were sold at an average price of $165.54, for a total transaction of $11,865,576.12. Following the completion of the sale, the chief executive officer now owns 3,071,196 shares of the company’s stock, valued at approximately $508,405,785.84. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Maurice J. Gallagher, Jr. sold 182,182 shares of the stock in a transaction that occurred on Wednesday, January 17th. The stock was sold at an average price of $167.18, for a total transaction of $30,457,186.76. Following the sale, the chief executive officer now directly owns 3,071,196 shares of the company’s stock, valued at approximately $513,442,547.28. The disclosure for this sale can be found here. In the last three months, insiders have sold 288,696 shares of company stock valued at $47,742,513. Corporate insiders own 22.00% of the company’s stock.
A number of institutional investors and hedge funds have recently bought and sold shares of the stock. State Street Corp grew its position in Allegiant Travel by 2.4% in the second quarter. State Street Corp now owns 354,060 shares of the transportation company’s stock valued at $48,013,000 after acquiring an additional 8,300 shares in the last quarter. Public Employees Retirement System of Ohio grew its position in Allegiant Travel by 4.8% in the second quarter. Public Employees Retirement System of Ohio now owns 21,029 shares of the transportation company’s stock valued at $2,852,000 after acquiring an additional 972 shares in the last quarter. Nationwide Fund Advisors grew its position in Allegiant Travel by 3.4% in the third quarter. Nationwide Fund Advisors now owns 85,083 shares of the transportation company’s stock valued at $11,205,000 after acquiring an additional 2,832 shares in the last quarter. Crossmark Global Holdings Inc. acquired a new stake in Allegiant Travel in the third quarter valued at approximately $351,000. Finally, Victory Capital Management Inc. grew its position in Allegiant Travel by 517.5% in the third quarter. Victory Capital Management Inc. now owns 5,267 shares of the transportation company’s stock valued at $694,000 after acquiring an additional 4,414 shares in the last quarter. 89.58% of the stock is owned by hedge funds and other institutional investors.
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About Allegiant Travel
Allegiant Travel Company is a leisure travel company. The Company is focused on providing travel services and products to residents of under-served cities in the United States. It also provides air transportation under fixed fee flying arrangements. The Company’s products and services include scheduled service air transportation, air-related ancillary products and services, third-party ancillary products and services and fixed fee contract air transportation.
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