Alaska Air Group (NYSE:ALK) Stock Rating Lowered by Zacks Research

Alaska Air Group (NYSE:ALK) was downgraded by investment analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued on Wednesday, Zacks reports.

Several other research firms have also commented on ALK. Raymond James Financial restated an “outperform” rating on shares of Alaska Air Group in a research report on Friday, September 25th. Citigroup reiterated a “sell” rating and issued a $33.00 price objective (down from $37.00) on shares of Alaska Air Group in a research report on Thursday. JPMorgan Chase & Co. lowered their target price on shares of Alaska Air Group from $92.00 to $74.00 and set an “overweight” rating on the stock in a research note on Thursday. UBS Group restated a “buy” rating and set a $51.00 target price (down from $54.00) on shares of Alaska Air Group in a research report on Friday, October 16th. Finally, Cantor Fitzgerald set a $46.00 target price on Alaska Air Group in a research report on Monday, August 24th. Ten investment analysts have rated the stock with a Buy rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Alaska Air Group presently has a consensus rating of “Moderate Buy” and an average target price of $53.23.

Alaska Air Group Price Performance

Shares of NYSE ALK opened at $35.43 on Wednesday. The company has a debt-to-equity ratio of 1.49, a current ratio of 0.46 and a quick ratio of 0.51. The stock has a market capitalization of $3.95 billion, a price-to-earnings ratio of -10.10 and a beta of 1.33. The firm’s 50 day simple moving average is $39.99 and its 200-day simple moving average is $43.18. Alaska Air Group has a 12 month low of $32.33 and a 12 month high of $60.63.

Alaska Air Group (NYSE:ALK) last posted its earnings results on Tuesday, October 20th. The transportation company reported $0.36 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.39 by ($0.03). Alaska Air Group had a negative net margin of 2.58% and a negative return on equity of 5.42%. The firm had revenue of $4.31 billion during the quarter, compared to analyst estimates of $4.31 billion. During the same quarter in the prior year, the firm earned $1.05 earnings per share. The business’s revenue for the quarter was up 14.4% on a year-over-year basis. Analysts expect that Alaska Air Group will post -3.26 EPS for the current year.

Insider Buying and Selling

In related news, CEO Benito Minicucci purchased 25,000 shares of the company’s stock in a transaction that occurred on Thursday, August 20th. The shares were purchased at an average price of $40.06 per share, with a total value of $1,001,500.00. Following the purchase, the chief executive officer owned 256,582 shares of the company’s stock, valued at $10,278,674.92. The trade was a 10.80% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Andrew Harrison sold 5,300 shares of Alaska Air Group stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $49.67, for a total transaction of $263,251.00. Following the completion of the sale, the executive vice president owned 25,528 shares in the company, valued at approximately $1,267,975.76. This trade represents a 17.19% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 1.00% of the company’s stock.

Hedge Funds Weigh In On Alaska Air Group

A number of institutional investors have recently added to or reduced their stakes in ALK. BlackRock Inc. purchased a new position in shares of Alaska Air Group during the 2nd quarter worth $606,307,000. Primecap Management Co. CA acquired a new position in shares of Alaska Air Group during the 2nd quarter valued at about $168,467,000. Bank of New York Mellon Corp purchased a new stake in shares of Alaska Air Group in the second quarter valued at about $34,776,000. Bank of America Corp DE purchased a new stake in shares of Alaska Air Group in the second quarter valued at about $32,751,000. Finally, Privium Fund Management UK Ltd acquired a new stake in Alaska Air Group during the second quarter worth about $27,195,000. Hedge funds and other institutional investors own 81.90% of the company’s stock.

Key Headlines Impacting Alaska Air Group

Here are the key news stories impacting Alaska Air Group this week:

• Positive Sentiment: Alaska Air reported strong revenue momentum in the third quarter, with revenue rising 14.4% year over year to approximately $4.31 billion. Premium traffic increased 24.5%, while diversified revenue streams reached 54% of the total mix, helping reduce the company’s reliance on traditional passenger fares. Alaska Air: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Strong yields and revenue growth supported better-than-expected underlying third-quarter earnings in some analyst assessments, indicating that pricing power and demand remain favorable. ALK Q3 Earnings Beat on Strong Yields Despite Fuel Pressure
• Neutral Sentiment: JPMorgan and Susquehanna both reduced their price targets, to $74 and $43, respectively, but maintained bullish ratings of “overweight” and “positive.” The target cuts reflect lower near-term expectations rather than a shift to a bearish outlook.
• Negative Sentiment: Fuel inflation is the primary concern. Higher fuel expenses squeezed third-quarter profitability and are expected to weigh more heavily in the fourth quarter, overshadowing the company’s traffic and revenue gains. Alaska Air Group Stock Slides As Q3 Results Deepen Fuel Fears
• Negative Sentiment: Alaska Air guided to a fourth-quarter 2026 loss of $2.50 to $2.00 per share, substantially worse than the $1.14 loss analysts expected. Third-quarter EPS also came in slightly below the consensus estimate in the company’s reported results, reinforcing concerns about margin pressure. Alaska Air Group Fourth-Quarter Guidance

About Alaska Air Group

Alaska Air Group, Inc is an airline holding company headquartered in Seattle, Washington. Its principal subsidiaries include Alaska Airlines and Hawaiian Airlines, which operate under separate brands while serving passengers throughout North America, the Pacific and other international markets.

Alaska Airlines provides scheduled passenger and air cargo services across the United States, Canada, Mexico, Costa Rica and the Bahamas, with a strong presence on the U.S. West Coast and in Alaska.