Alaska Air Group Reports Strong Quarterly Earnings

Alaska Air Group (NYSE:ALK - Get Free Report) released its quarterly earnings results on Wednesday, showcasing a significant performance boost. The transportation company posted earnings of $0.97 per share (EPS), exceeding analysts' average expectations of $0.45 by $0.52, according to reports from Zacks. Additionally, Alaska Air Group achieved a return on equity of 12.81% and reported a net profit margin of 2.99%. On the same day, Alaska Air Group revised its earnings guidance for the first quarter of 2025, now projecting earnings between -0.700 and -0.500 EPS.

Alaska Air Group Stock Performance

On the trading front, Alaska Air Group's stock witnessed a decline of $1.60 on Wednesday, settling at a price of $67.28. During the day, approximately 4,369,555 shares changed hands, which is significantly higher than the average trading volume of 2,713,023 shares. The company currently has a market capitalization of $8.54 billion and a price-to-earnings ratio of 27.13. Other notable financial metrics include a debt-to-equity ratio of 0.93, and liquidity ratios where the current ratio stands at 0.60 and the quick ratio at 0.57. The stock's fifty-day and two-hundred-day simple moving averages are $60.81 and $47.78, respectively, with a 52-week low of $32.62 and a high of $70.21.

Wall Street Analyst Opinions

In recent analyses, multiple financial experts have provided updates on Alaska Air Group's stock. Morgan Stanley raised its target price from $70 to $90, assigning an "overweight" rating to the company. Similarly, Bank of America increased its target from $70 to $80, categorizing the stock as a "buy." Other firms, such as JPMorgan Chase & Co., TD Cowen, and Barclays, also made upward revisions to their price targets for Alaska Air Group, showing a growing confidence in the company’s outlook. Currently, one analyst recommends a hold rating while fourteen analysts suggest a buy, resulting in a consensus rating of "Moderate Buy" and an average price target of $72.57.

Recent Insider Trading Activity

In terms of insider trading, VP Emily Halverson sold 1,329 shares of Alaska Air Group on December 18th, at an average price of $64.41, totaling approximately $85,600.89. Post-sale, she retains ownership of 7,150 shares valued around $460,531.50, reflecting a 15.67% decrease in her stake. Additionally, SVP Andrea L. Schneider sold 3,700 shares at an average price of $63.50 on December 11th, amounting to a total of $234,950.00. Following her transaction, she holds 21,086 shares valued at approximately $1,338,961, representing a 14.93% decrease in her ownership. Over the last three months, insiders have disposed of a total of 34,473 shares worth $2,198,342, while corporate insiders own about 0.92% of the company’s total shares.

About Alaska Air Group

Alaska Air Group, Inc. operates airlines through its various subsidiaries. The company has three divisions: Mainline, Regional, and Horizon. It provides scheduled air transportation services using Boeing jet aircraft for both passengers and cargo across the United States, with services extending to parts of Canada, Mexico, Costa Rica, Belize, Guatemala, and the Bahamas. In addition, it operates on a shorter-distance network primarily servicing the U.S. and neighboring countries.

Alaska, Earnings, Stocks