Alaska Air Group Inc. (NYSE: ALK)’s stock price has gone decline by -0.44 in comparison to its previous close of 40.98, however, the company has experienced a -5.14% decrease in its stock price over the last five trading days. Zacks Investment Research reported 2024-04-15 that Beyond analysts’ top -and-bottom-line estimates for Alaska Air (ALK), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended March 2024.
Is It Worth Investing in Alaska Air Group Inc. (NYSE: ALK) Right Now?
The price-to-earnings ratio for Alaska Air Group Inc. (NYSE: ALK) is 22.56x, which is above its average ratio. Moreover, the 36-month beta value for ALK is 1.62. Analysts have varying opinions on the stock, with 6 analysts rating it as a “buy,” 5 as “overweight,” 3 as “hold,” and 0 as “sell.”
The public float for ALK is 125.54M and currently, short sellers hold a 4.79% of that float. On April 17, 2024, ALK’s average trading volume was 2.29M shares.
ALK’s Market Performance
ALK stock saw an increase of -5.14% in the past week, with a monthly gain of 6.86% and a quarterly increase of 18.54%. The volatility ratio for the week is 3.01%, and the volatility levels for the last 30 days are 2.75% for Alaska Air Group Inc. (ALK). The simple moving average for the last 20 days is -0.78% for ALK’s stock, with a simple moving average of 2.64% for the last 200 days.
Analysts’ Opinion of ALK
Many brokerage firms have already submitted their reports for ALK stocks, with TD Cowen repeating the rating for ALK by listing it as a “Buy.” The predicted price for ALK in the upcoming period, according to TD Cowen is $49 based on the research report published on April 05, 2024 of the current year 2024.
Deutsche Bank, on the other hand, stated in their research note that they expect to see ALK reach a price target of $51, previously predicting the price at $44. The rating they have provided for ALK stocks is “Buy” according to the report published on February 20th, 2024.
TD Cowen gave a rating of “Outperform” to ALK, setting the target price at $40 in the report published on January 26th of the current year.
ALK Trading at 4.78% 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 -28.65% of loss for the given period.
Volatility was left at 2.75%, however, over the last 30 days, the volatility rate increased by 3.01%, as shares surge +6.78% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +12.93% upper at present.
During the last 5 trading sessions, ALK fell by -5.14%, which changed the moving average for the period of 200-days by -21.94% in comparison to the 20-day moving average, which settled at $41.25. In addition, Alaska Air Group Inc. saw 4.43% 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 0.83. 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
To wrap up, the performance of Alaska Air Group Inc. (ALK) has been mixed in recent times. The stock has received a bullish of “buy” and “hold” ratings from analysts. 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.
