Alaska Air Group Price Target Increased by Goldman Sachs

Alaska Air Group (NYSE:ALK) saw its price target raised by The Goldman Sachs Group from $70.00 to $79.00, as stated in a research note released on Tuesday. The investment firm maintains a "buy" rating on the airline's stock. This new target price indicates a potential increase of approximately 18.94% from the stock's last closing price.

Analysts Outlook on Alaska Air Group

In addition to Goldman Sachs, several other analysts have recently updated their views on Alaska Air Group. Morgan Stanley has set a new price target of $90.00 with an "overweight" rating. Citigroup has raised its target from $63.00 to $74.00 while maintaining a "buy" rating. JPMorgan Chase & Co. also adjusted its target, increasing it from $58.00 to $85.00, enjoying a similarly positive rating with an "overweight" designation. UBS Group has raised its target from $81.00 to $82.00, continuing the trend of enthusiasm among analysts. Lastly, Barclays increased their price target from $55.00 to $80.00 and has an "overweight" stance on the stock.

Investment Sentiment and Performance

Overall, one analyst has issued a hold rating, while fourteen analysts are recommending buying shares of Alaska Air Group. Based on data from MarketBeat.com, the consensus rating stands at "Moderate Buy" with an average price target of around $70.79.

Current Stock Performance

The stock opened at $66.42 on Tuesday. Alaska Air Group has key financial metrics like a current ratio of 0.60, a quick ratio of 0.57, and a debt-to-equity ratio of 0.93. Currently, its market capitalization is at $8.43 billion with a price-to-earnings ratio (P/E) of 26.78. Over the past year, the stock has hit a low of $32.62 and a high of $69.10, reflecting a volatile but improving performance.

Recent Earnings Report

The company recently reported its earnings for the third quarter on October 31st, posting earnings per share (EPS) of $2.25, slightly beating analysts' expectations which were set at $2.22. Revenue totaled $3.07 billion for the quarter, surpassing estimated revenues of $3 billion. This represents an 8.2% increase in revenue year-over-year, and the company's net margin stands at 2.99% with a return on equity of 12.81%. Upcoming estimates suggest that Alaska Air Group will post 4.3 EPS for the ongoing year.

Insider Trading Activity

In insider trading news, Vice President Emily Halverson sold 1,329 shares of stock for an average price of $64.41, bringing the total transaction value to approximately $85,600. She now holds 7,150 shares valued at around $460,531. CFO Shane R. Tackett also sold 5,000 shares at an average price of $63.56, resulting in a total of $317,800. A total of 34,473 shares have been sold by insiders recently, lending insight into the insider sentiment regarding the stock.

Institutional Investments

Recent activities indicate that several institutional investors are adjusting their positions in Alaska Air Group. Dimensional Fund Advisors LP increased its stake by 5.8%, acquiring an additional 357,907 shares, for a total holding of over 6.5 million shares. Point72 Asset Management also boosted its holdings by 8% during the second quarter, acquiring 220,030 shares, now totaling approximately 2.97 million shares. Notably, 81.90% of the stock is currently owned by hedge funds and institutional investors.

Overview of Alaska Air Group

Alaska Air Group, through its subsidiaries, is known for operating airlines, structured into three segments: Mainline, Regional, and Horizon. The company provides scheduled air transportation services for passengers and cargo using Boeing aircraft across the US, Canada, Mexico, and parts of Central America and the Bahamas.

Alaska, Airlines, Stocks