Alaska Air Group Inc. (NYSE: ALK) – Suitable For Long Term Buy?


    SSgA Funds Management, Inc. recently announced the acquisition of new stake in Alaska Air Group Inc. (NYSE:ALK). The institutional investor has increased its shareholding in the Industrials company by 4.21% to 3.91 million shares with purchase of 0.16 million shares. This fresh investment now brings its stake to 3.16% valued currently at $134.66 million. In addition, Citadel Advisors LLC raised its holdings by 1.42 million to 2.53 million shares. And AllianceBernstein LP has lifted its position by 5.96% or 0.12 million shares – to 2.17 million shares.

    With over 2.28 million Alaska Air Group Inc. (ALK) shares trading Tuesday and a closing price of $39.15 on the day, the dollar volume was approximately $89.2 million. The shares have shown a positive weekly performance of 3.82% and its price on 09/01/20 gained nearly 0.51%. Currently, there are 123.64M common shares owned by the public and among those 123.06M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 13 analysts who have offered their price forecasts for ALK have a consensus price objective of $44.71. The analysts have set the share’s price value over the next 12 months at a high of $63.00 and a low of $31.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Alaska Air Group Inc. stock is 2.00 for the next 12 months. The average price target is 11.82% above its last price level and an upside to the estimated low will see the stock lose -26.29% over that period. But an upside of 37.86% will see the stock hit the forecast high price target while mean target price for the stock is $44.00.

    Insiders at the company have transacted a total of 92 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 53 of these insider trades were purchases, accounting for 114,575 shares. Insider sales of the common stock occurred on 39 occasions, with total insider shares sold totaling 48,763 shares.

    The top 3 mutual fund holders in Alaska Air Group Inc. are Vanguard PRIMECAP Fund, Vanguard Total Stock Market Index, and Parnassus Endeavor Fund. Vanguard PRIMECAP Fund owns 4.61 million shares of the company’s stock, all valued at over $158.73 million. The company sold -0.3 million shares recently to bring their total holdings to about 3.73% of the shares outstanding. Vanguard Total Stock Market Index sold 21543.0 shares to see its total holdings shrink to 3.48 million shares valued at over $119.8 million and representing 2.81% of the shares outstanding. Parnassus Endeavor Fund now owns shares totaling to 2.22% of the shares outstanding.

    Shares of Alaska Air Group Inc. (NYSE: ALK) opened at $38.10, down -$0.85 from a prior closing price of $38.95. However, the script later closed the day at $39.15, up 0.51%. The company’s stock has a 5-day price change of 3.82% and -0.38% over the past three months. ALK shares are trading -42.21% year to date (YTD), with the 12-month market performance down to -35.21% lower. It has a 12-month low price of $20.02 and touched a high of $72.22 over the same period. Currently, 2.28 million shares have been traded, compared to an average intraday trading volume of 3.25 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 5.12%, 7.68%, and -14.75% respectively.

    Institutional ownership of Alaska Air Group Inc. (NYSE: ALK) shares accounts for 75.30% of the company’s 123.64M shares outstanding. Mutual fund holders own 24.36%, while other institutional holders and individual stakeholders account for 49.93% and 0.94% respectively.

    It has a market capitalization of $4.58B and a beta (3y monthly) value of 1.53. The stock’s trailing 12-month PE ratio is 93.44, while the earnings-per-share (ttm) stands at $0.42. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.74% over the week and 4.37% over the month.

    Analysts forecast that Alaska Air Group Inc. (ALK) will achieve an EPS of -$2.58 for the current quarter, -$1.23 for the next quarter and $1.67 for 2021. The lowest estimate earnings-per-share for the quarter is -$4.3 while analysts give the company a high EPS estimate of $0.3. Comparatively, EPS for the current quarter was $2.63 a year ago. Earnings per share for the fiscal year are expected to increase by 75.50%, and 119.20% over the next financial year. EPS should shrink at an annualized rate of -11.27% over the next five years, compared to 6.90% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 13 brokerage firm advisors rate Alaska Air Group Inc. (ALK) as a “Moderate Buy” at a consensus score of 2.00. Specifically, 9 Wall Street analysts polled rate the stock as a buy, while 4 of the 13 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the ALK, a number of firms have released research notes about the stock. BofA/Merrill stated their Buy rating for the stock in a research note on June 08, 2020, with the firm’s price target at. Wolfe Research coverage for the Alaska Air Group Inc. (ALK) stock in a research note released on May 29, 2020 offered a Outperform rating with a price target of. Cowen was of a view on April 28, 2020 that the stock is Outperform, while JP Morgan gave the stock Overweight rating on April 06, 2020, issuing a price target of $43. Deutsche Bank on their part issued Buy rating on March 25, 2020.


    Please enter your comment!
    Please enter your name here