Alaska Air Group Receives Price Target Increase from Goldman Sachs

Alaska Air Group (NYSE:ALK) recently saw an increase in its price target from the analysts at The Goldman Sachs Group, moving from $70.00 to $79.00. This adjustment was highlighted in a research note released on Tuesday, where the brokerage emphasized a "buy" rating for the airline's shares. Goldman Sachs' new target price indicates a potential growth of 18.94% compared to the stock's closing price on the previous day.

In addition to Goldman Sachs, other financial institutions have also revised their price targets for Alaska Air Group. For instance, Morgan Stanley raised its forecast from $70.00 to $90.00 and assigned an "overweight" rating on December 11. On the following week, Citigroup adjusted its price estimate from $63.00 to $74.00, maintaining a "buy" rating. Similarly, JPMorgan Chase & Co. increased its outlook from $58.00 to $85.00 on December 11, while UBS Group lifted its target from $81.00 to $82.00 in early January. Barclays, on the other hand, raised its walk from $55.00 to $80.00 back in mid-November, also rating it as "overweight." In total, one analyst has given the stock a hold rating, while fourteen others recommend it as a buy, leading to an average rating of "Moderate Buy" with a consensus price target of $70.79, according to MarketBeat.com.

Alaska Air Group's Stock Performance

As of Tuesday, Alaska Air Group's stock opened at $66.42. The company reports a current ratio of 0.60, indicating its short-term financial health. Additionally, it has a quick ratio of 0.57 and a debt-to-equity ratio of 0.93. The stock has seen a 50-day moving average of $58.86 and a 200-day moving average of $46.62. Currently, its market cap stands at $8.43 billion, with a price-to-earnings (P/E) ratio of 26.78, and a price-to-earnings growth (P/E/G) ratio of 1.24. The stock experienced a yearly low of $32.62 and a high of $69.10 over the last year.

In its most recent earnings report released on October 31, Alaska Air Group announced earnings of $2.25 per share for the quarter, which slightly exceeded analysts' expectations of $2.22. The company's revenue was recorded at $3.07 billion, surpassing estimates of $3 billion. Over the past year, Alaska Air Group's revenue grew by 8.2%, compared to the previous year, where earnings per share was $1.83. Analysts predict the company will achieve earnings per share (EPS) of 4.3 for the current year.

Insider Transactions at Alaska Air Group

Recent insider trading activity has also been noted. Vice President Emily Halverson sold 1,329 shares of the company on December 18 at an average price of $64.41, which amounted to approximately $85,600. Following this sale, she retains ownership of 7,150 shares valued at around $460,531.50, showing a 15.67% decrease in her position. CFO Shane R. Tackett also sold 5,000 shares on December 11 at an average price of $63.56, totaling $317,800. The CFO now owns 27,362 shares worth approximately $1,739,128.72, marking a 15.45% decrease in ownership. Over the past ninety days, insiders have sold a total of 34,473 shares valued at roughly $2,198,342. Insiders collectively own 0.68% of the company's shares.

Institutional Investor Activity in Alaska Air Group

Institutional investors have recently adjusted their positions in Alaska Air Group. Dimensional Fund Advisors LP increased its holdings by 5.8% in the second quarter, owning 6,504,583 shares after acquiring an additional 357,907. Point72 Asset Management L.P. raised its stake by 8.0%, now holding 2,969,295 shares valued at $119,960,000. Geode Capital Management LLC boosted its holdings by 3.9% in the third quarter, now controlling 2,061,596 shares. Massachusetts Financial Services Co. MA slightly increased its stake by 0.4%, owning 1,593,756 shares. Lastly, Charles Schwab Investment Management Inc. saw a significant increase of 45.1%, now owning 1,422,247 shares. Overall, approximately 81.90% of Alaska Air Group's stock is owned by institutional investors.

About Alaska Air Group

Alaska Air Group, Inc. operates airline services through its subsidiaries. It conducts operations under three segments: Mainline, Regional, and Horizon. The company provides scheduled air transportation for both passengers and cargo on Boeing jet aircraft across the United States, in addition to select locations in Canada, Mexico, Costa Rica, Belize, Guatemala, and the Bahamas.

Alaska, Goldman, Air