Alaska Air Group Inc. (NYSE: ALK) has experienced a rise in its stock price by 0.19 compared to its previous closing price of 42.99. However, the company has seen a gain of 8.87% in its stock price over the last five trading days. Reuters reported 2024-03-28 that Alaska Air Group said on Thursday the lost capacity from the Boeing 737 Max 9 fleet grounding may cause its long-term profit growth to be below its target range of 4% to 8%.
Is It Worth Investing in Alaska Air Group Inc. (NYSE: ALK) Right Now?
Alaska Air Group Inc. (NYSE: ALK) has a higher price-to-earnings ratio of 23.82x compared to its average ratio, The 36-month beta value for ALK is at 1.64. Analysts have varying views on the stock, with 6 analysts rating it as a “buy,” 5 rating it as “overweight,” 3 as “hold,” and 0 as “sell.”
The public float for ALK is 125.56M, and currently, shorts hold a 3.64% of that float. The average trading volume for ALK on April 02, 2024 was 2.45M shares.
ALK’s Market Performance
ALK stock saw an increase of 8.87% in the past week, with a monthly gain of 15.19% and a quarterly increase of 7.89%. The volatility ratio for the week is 2.82%, and the volatility levels for the last 30 days are 2.76% for Alaska Air Group Inc. (ALK). The simple moving average for the past 20 days is 11.54% for ALK’s stock, with a 7.13% simple moving average for the past 200 days.
Analysts’ Opinion of ALK
Many brokerage firms have already submitted their reports for ALK stocks, with Deutsche Bank repeating the rating for ALK by listing it as a “Buy.” The predicted price for ALK in the upcoming period, according to Deutsche Bank is $51 based on the research report published on February 20, 2024 of the current year 2024.
TD Cowen, on the other hand, stated in their research note that they expect to see ALK reach a price target of $40, previously predicting the price at $45. The rating they have provided for ALK stocks is “Outperform” according to the report published on January 26th, 2024.
Susquehanna gave a rating of “Neutral” to ALK, setting the target price at $40 in the report published on January 10th of the current year.
ALK Trading at 14.56% from the 50-Day Moving Average
After a stumble in the market that brought ALK to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -24.68% of loss for the given period.
Volatility was left at 2.76%, however, over the last 30 days, the volatility rate increased by 2.82%, as shares surge +16.41% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +23.20% upper at present.
During the last 5 trading sessions, ALK rose by +8.87%, which changed the moving average for the period of 200-days by -15.25% in comparison to the 20-day moving average, which settled at $38.92. In addition, Alaska Air Group Inc. saw 10.24% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at ALK starting from HARRISON ANDREW R, who sale 6,500 shares at the price of $38.36 back on Feb 28 ’24. After this action, HARRISON ANDREW R now owns 26,048 shares of Alaska Air Group Inc., valued at $249,348 using the latest closing price.
MINICUCCI BENITO, the CEO AND PRESIDENT of Alaska Air Group Inc., purchase 56 shares at $36.27 during a trade that took place back on Dec 07 ’23, which means that MINICUCCI BENITO is holding 119,942 shares at $2,031 based on the most recent closing price.
Stock Fundamentals for ALK
Current profitability levels for the company are sitting at:
- 0.05 for the present operating margin
- 0.18 for the gross margin
The net margin for Alaska Air Group Inc. stands at 0.02. The total capital return value is set at 0.05. Equity return is now at value 5.93, with 1.51 for asset returns.
Based on Alaska Air Group Inc. (ALK), the company’s capital structure generated 0.4 points at debt to capital in total, while cash flow to debt ratio is standing at 0.39. The debt to equity ratio resting at 0.65. The interest coverage ratio of the stock is 5.25.
Currently, EBITDA for the company is 1.35 billion with net debt to EBITDA at 3.1. When we switch over and look at the enterprise to sales, we see a ratio of 0.86. The receivables turnover for the company is 27.22for trailing twelve months and the total asset turnover is 0.66. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.61.
Conclusion
In conclusion, Alaska Air Group Inc. (ALK) has had a better performance lately. Opinion on the stock among analysts is bullish, with some giving it a “buy” rating and others a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
