On a downside, Alaska Air Group, Inc. (NYSE:ALK) is likely to find some support, which begins at $68.63. On the upside, the stock will test short term resistance at around $71.97. The failure to get near-term support could push it to $67.23. Its 50 day simple moving average (SMA 50) price is $65.86 and its 200-day simple moving average (SMA 200) price is $64.03. The company’s stock currently has a total float of 122.79M shares. Its weekly volatility is hovering around 3.33% and felt 2.75% volatility in price over a month.
ALK stock has been range bound between the range of $69.17 and $69.17 during the whole day. The stock finished Tuesday at $70.03. The -3.86% downtrend forced its market value to reach at $8.63B. The price went up as high as $69.17 before retreating. Trading activity significantly improved as the volume at ready counter increased to 4,561,351 shares versus 1,780,025 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,068,523 shares. The stock is now 21.73% above against its bear-market low of $57.53 on May 21, 2018. It has retreated -8.61% since it’s 52-week high of $76.06 reached in December. Now the market price is up 2.56% on the year and down -4.73% YTD.
Separately, it has been reported that multiple insider activity took place at Alaska Air Group, Inc. (ALK). Director Thompson J Kenneth sold 2,500 shares for $33,853 in transaction occurred on 2018/12/03. After making this transaction, the Director owns a direct stake of 182,800 shares, worth $2,370,726, as per the last closing price. On 2018/10/29 Harrison Andrew R, EVP & CRO at ALK, dumped 930 shares at an average price of $62.55 per share. The selling total is valued at $1,509,987.
EVP STRATEGY/PLNG, Tackett Shane R had divested 3,000 shares for $8,045 through a trade on 2018/09/07. Following this activity, the insider holds 200,430 shares worth $563,391 as of recent close. Wall Street’s most bullish Alaska Air Group, Inc. (NYSE:ALK) analysts are predicting the share price to blow past $110 per share during the next 12 months. The current median share price forecast by them is $80, suggesting that the stock could increase 14.24% in that time frame. The average price target of $80.73 calls for a nearly 15.28% increase in the stock price.
It had seen a change in price target from analysts at Imperial Capital, who reiterated the stock at Outperform on November 29 but moved PT from $90 to $102. Analysts at BofA/Merrill, maintained the company shares at Neutral on November 29 but switched target price from $63 to $71. Brokerage firm Cowen, looks cautious as they stick to prior recommendation of Outperform, in a call on November 28. However, they did change the target price from $80 to $84. Credit Suisse, released new analyst coverage on November 19, calling the stock is Outperform.
When looking at valuations, Alaska Air Group, Inc. (ALK) has a pricey P/E of 17.08x as compared to industry average of 13.66x. Moreover, it trades for 11.39 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 2.28x price/book and 1.06x price/sales. Compared to others, Alaska Air Group, Inc. is in a different league with regards to profitability, having net margins of 9.6%. To put some perspective around this, the industry’s average net margin is 9.23%. ALK’s ROE is 22%, which is also considerably better than the industry’s ROE of 21.19%. It’s also not liquid in the near term, with a current ratio of 0.7. The stock has a debt/capital of 0.54.
Shares of Alaska Air Group, Inc. (ALK) have gained 19.2% since the company’s last earnings report. Over the past 12 fiscal quarters, Alaska Air Group, Inc. (NYSE:ALK) has topped consensus earnings estimates in 10 quarters (83%), missed earnings in 1 quarters (8%), whereas at 1 occasion EPS met analyst expectations. ALK last reported earnings on October 25, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $1.91 per share, -65.34% change on the same period last year. That was better than consensus for $1.81. Revenue for the recent quarter stood at $2.21 billion, up 4% on last year and above the $2.2 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $2.01 billion to $2.05 billion, which should be compared with $2.13 billion generated last year. EPS is seen in a range of $0.34 to $0.71, against the $1.38 reported a year ago.