Alaska Air Group Inc. (NYSE: ALK) stock fell -4.06% on Friday to $43.49 against a previous-day closing price of $45.33. With 1.73 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.46 million shares. During the session, the Airlines company that operates in wider Industrials sector, reached to the highest price of $45.05 whereas the lowest price it dropped to was $43.47. The 52-week range on ALK shows that it touched its highest point at $63.76 and its lowest point at $38.19 during that stretch. It currently has a 1-year price target of $65.45. Beta for the stock currently stands at 1.43.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ALK was down-trending over the past week, with a drop of -5.37%, but this was down by -1.58% over a month. Three-month performance surged to 7.73% while six-month performance fell -20.25%. The stock lost -22.49% in the past year, while it has lost -16.53% so far this year. A look at the trailing 12-month EPS for ALK yields 1.51 with Next year EPS estimates of 5.48. For the next quarter, that number is 2.38. This implies an EPS growth rate of 134.10% for this year and 23.05% for next year. EPS is expected to grow by 19.43% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -10.60%.
Float and Shares Shorts:
At present, 126.54 million ALK shares are outstanding with a float of 126.28 million shares on hand for trading. On Jul 14, 2022, short shares totaled 3.3 million, which was 2.60% higher than short shares on Jun 14, 2022. In addition to Mr. Benito Minicucci as the firm’s Pres, CEO & Director, Mr. Shane R. Tackett serves as its CFO & Exec. VP of Fin.
Through their ownership of 77.81% of ALK’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 45.87% of ALK, in contrast to 30.45% held by mutual funds. Shares owned by individuals account for 0.88%. As the largest shareholder in ALK with 10.80% of the stake, The Vanguard Group, Inc. holds 13,695,554 shares worth 13,695,554. A second-largest stockholder of ALK, Victory Capital Management, Inc., holds 6,219,448 shares, controlling over 4.91% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in ALK, holding 5,873,545 shares or 4.63% stake. With a 3.45% stake in ALK, the Victory Sycamore Established Valu is the largest stakeholder. A total of 4,370,000 shares are owned by the mutual fund manager. The Vanguard PRIMECAP Fund, which owns about 3.02% of ALK stock, is the second-largest Mutual Fund holder. It holds 3,833,700 shares valued at 167.0 million. Vanguard Total Stock Market Index holds 2.94% of the stake in ALK, owning 3,724,854 shares worth 162.25 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ALK since 13 analysts follow the stock currently. There are 11 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ALK analysts setting a high price target of $95.00 and a low target of $45.00, the average target price over the next 12 months is $64.75. Based on these targets, ALK could surge 118.44% to reach the target high and rise by 3.47% to reach the target low. Reaching the average price target will result in a growth of 48.88% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ALK will report FY 2022 earnings on 01/26/2023. Analysts have provided yearly estimates in a range of $4.83 being high and $4.00 being low. For ALK, this leads to a yearly average estimate of $4.46. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Alaska Air Group Inc. surprised analysts by $0.22 when it reported $2.19 EPS against a consensus estimate of $1.97. The surprise factor in the prior quarter was $0.26. Based on analyst estimates, the high estimate for the next quarter is $2.64 and the low estimate is $2.15. The average estimate for the next quarter is thus $2.39.
Summary of Insider Activity:
Insiders traded ALK stock several times over the past three months with 0 Buys and 1 Sells. In these transactions, 0 shares were bought while 2,267 shares were sold. The number of buy transactions has increased to 54 while that of sell transactions has risen to 42 over the past year. The total number of shares bought during that period was 119,345 while 46,252 shares were sold.