Zacks Investment Research downgraded shares of Allegiant Air (NASDAQ:ALGT) from a hold rating to a sell rating in a research note released on Thursday.
According to Zacks, “We expect Allegiant's first-quarter results to be hurt by high labor and fuel costs. Detailed results should be out on Apr 25. Apart from high costs, the company's high debt levels also raise concerns. Capacity-related woes are also hurting the stock. In fact, the stock has declined significantly in the past month. The negative sentiment surrounding the stock can be made out from the fact that the Zacks Consensus Estimate for first-quarter earnings has declined more than 1% over the last 30 days. We are, however, encouraged by the company's shareholder-friendly measures. Additionally, Allegiant’s initiatives to modernize its fleet are impressive.”
Other analysts also recently issued reports about the stock. Morgan Stanley reissued an equal weight rating and set a $172.00 target price (up from $157.00) on shares of Allegiant Air in a research note on Friday, February 23rd. Stifel Nicolaus boosted their target price on shares of Allegiant Air from $200.00 to $210.00 and gave the company a buy rating in a research note on Thursday, February 1st. BidaskClub downgraded shares of Allegiant Air from a buy rating to a hold rating in a research note on Thursday, January 25th. Wolfe Research raised shares of Allegiant Air from a market perform rating to an outperform rating in a research note on Thursday, February 1st. Finally, Imperial Capital reissued an in-line rating and set a $165.00 target price (up from $150.00) on shares of Allegiant Air in a research note on Thursday, February 1st. Two investment analysts have rated the stock with a sell rating, eight have assigned a hold rating and six have assigned a buy rating to the stock. The company has a consensus rating of Hold and an average target price of $164.36.
Allegiant Air (NASDAQ:ALGT) last announced its earnings results on Wednesday, January 31st. The transportation company reported $2.71 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.78 by $0.93. Allegiant Air had a net margin of 12.96% and a return on equity of 31.47%. The company had revenue of $378.56 million for the quarter, compared to the consensus estimate of $377.25 million. During the same period in the previous year, the business earned $2.48 EPS. The company’s revenue was up 12.7% on a year-over-year basis. research analysts forecast that Allegiant Air will post 10.82 earnings per share for the current year.
The business also recently declared a quarterly dividend, which was paid on Friday, March 16th. Stockholders of record on Friday, March 2nd were paid a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.86%. The ex-dividend date was Thursday, March 1st. Allegiant Air’s dividend payout ratio (DPR) is presently 29.32%.
In other news, SVP Gregory Clark Anderson sold 1,650 shares of the company’s stock in a transaction on Tuesday, March 13th. The shares were sold at an average price of $178.25, for a total value of $294,112.50. Following the transaction, the senior vice president now directly owns 15,935 shares of the company’s stock, valued at $2,840,413.75. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Maurice J. Gallagher, Jr. sold 182,182 shares of the company’s stock in a transaction on Wednesday, January 17th. The stock was sold at an average price of $167.18, for a total transaction of $30,457,186.76. Following the completion of the transaction, the chief executive officer now directly owns 3,071,196 shares in the company, valued at $513,442,547.28. The disclosure for this sale can be found here. Insiders sold 196,597 shares of company stock worth $32,838,900 over the last ninety days. 21.00% of the stock is currently owned by company insiders.
Several hedge funds and other institutional investors have recently bought and sold shares of ALGT. New York State Common Retirement Fund increased its stake in shares of Allegiant Air by 96.3% in the third quarter. New York State Common Retirement Fund now owns 127,441 shares of the transportation company’s stock worth $16,784,000 after acquiring an additional 62,520 shares during the last quarter. Russell Investments Group Ltd. increased its stake in shares of Allegiant Air by 349.6% in the third quarter. Russell Investments Group Ltd. now owns 8,070 shares of the transportation company’s stock worth $1,063,000 after acquiring an additional 6,275 shares during the last quarter. American International Group Inc. increased its stake in shares of Allegiant Air by 4.9% in the third quarter. American International Group Inc. now owns 10,306 shares of the transportation company’s stock worth $1,357,000 after acquiring an additional 483 shares during the last quarter. Wells Fargo & Company MN boosted its holdings in Allegiant Air by 33.8% in the third quarter. Wells Fargo & Company MN now owns 16,909 shares of the transportation company’s stock worth $2,227,000 after purchasing an additional 4,274 shares in the last quarter. Finally, Schwab Charles Investment Management Inc. boosted its holdings in Allegiant Air by 4.0% in the third quarter. Schwab Charles Investment Management Inc. now owns 82,373 shares of the transportation company’s stock worth $10,849,000 after purchasing an additional 3,203 shares in the last quarter. 90.41% of the stock is currently owned by institutional investors and hedge funds.
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Allegiant Air Company Profile
Allegiant Travel Company, a leisure travel company, focuses on the provision of travel services and products to residents of under-served cities in the United States. The company offers scheduled air transportation on limited frequency nonstop flights between under-served cities and leisure destinations.
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