The stock price of Alaska Air Group Inc. (NYSE: ALK) has plunged by -0.34 when compared to previous closing price of 40.82, but the company has seen a -2.00% decline in its stock price over the last five trading sessions. forbes.com reported 2024-06-26 that Alaska Air (NYSE: ALK) saw its net income surge by 300% y-o-y to $235 million in 2023. This can primarily be attributed to higher revenues, and lower fuel costs.
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 21.71x compared to its average ratio, The 36-month beta value for ALK is at 1.60. 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.”
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The public float for ALK is 126.35M, and currently, shorts hold a 4.61% of that float. The average trading volume for ALK on June 27, 2024 was 1.96M shares.
ALK’s Market Performance
ALK stock saw a decrease of -2.00% in the past week, with a monthly decline of -4.73% and a quarterly a decrease of 2.03%. The volatility ratio for the week is 2.23%, and the volatility levels for the last 30 days are 2.55% for Alaska Air Group Inc. (ALK). The simple moving average for the past 20 days is -1.35% for ALK’s stock, with a 5.74% simple moving average for the past 200 days.
Analysts’ Opinion of ALK
Many brokerage firms have already submitted their reports for ALK stocks, with Wolfe Research repeating the rating for ALK by listing it as a “Outperform.” The predicted price for ALK in the upcoming period, according to Wolfe Research is $55 based on the research report published on May 17, 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 $58, previously predicting the price at $49. The rating they have provided for ALK stocks is “Buy” according to the report published on April 19th, 2024.
TD Cowen gave a rating of “Buy” to ALK, setting the target price at $49 in the report published on April 05th of the current year.
ALK Trading at -4.44% 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 -28.85% of loss for the given period.
Volatility was left at 2.55%, however, over the last 30 days, the volatility rate increased by 2.23%, as shares sank -2.54% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -0.73% lower at present.
During the last 5 trading sessions, ALK fell by -2.00%, which changed the moving average for the period of 200-days by +2.19% in comparison to the 20-day moving average, which settled at $41.18. In addition, Alaska Air Group Inc. saw 4.12% 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 6.39, with 1.68 for asset returns.
Based on Alaska Air Group Inc. (ALK), the company’s capital structure generated 0.41 points at debt to capital in total, while cash flow to debt ratio is standing at 0.41. The debt to equity ratio resting at 0.68. The interest coverage ratio of the stock is 4.77.
Currently, EBITDA for the company is 1.35 billion with net debt to EBITDA at 2.35. When we switch over and look at the enterprise to sales, we see a ratio of 0.77. The receivables turnover for the company is 27.24for trailing twelve months and the total asset turnover is 0.71. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.65.
Conclusion
In conclusion, Alaska Air Group Inc. (ALK) has had a mixed 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.
