Allegiant Travel Company (ALGT) Cut to “Hold” at Zacks Investment Research
Zacks Investment Research lowered shares of Allegiant Travel Company (NASDAQ:ALGT) from a buy rating to a hold rating in a report released on Friday morning.
According to Zacks, “Even though shares of Allegiant have underperformed its industry so far this year, we remain positive on the improved scenario with respect to total revenue per available seat miles (TRASM). The metric improved 3.1% in the second quarter aided by the shift of Easter into April. Additionally, we are impressed by Allegiant’s efforts to reward shareholders. The company’s efforts to modernize its fleet are also encouraging. However, we remain mindful of the high labor costs, which hurt the bottom line in the second quarter. Consequently, earnings contracted 20.11% on a year-over-year basis and also missed the Zacks Consensus Estimate. High costs are expected to limit bottom-line growth in the third quarter as well.”
Several other equities analysts have also commented on ALGT. Cowen and Company restated a market perform rating and set a $150.00 price target (down previously from $157.00) on shares of Allegiant Travel in a research report on Thursday, July 27th. Deutsche Bank AG reiterated a hold rating and issued a $130.00 target price (down previously from $153.00) on shares of Allegiant Travel in a research report on Thursday, July 27th. ValuEngine upgraded shares of Allegiant Travel from a hold rating to a buy rating in a research report on Thursday, July 20th. Morgan Stanley reiterated an equal weight rating and issued a $141.00 target price (down previously from $144.00) on shares of Allegiant Travel in a research report on Monday, July 10th. Finally, Imperial Capital reiterated an in-line rating and issued a $155.00 target price (down previously from $170.00) on shares of Allegiant Travel in a research report on Thursday, April 27th. Two analysts have rated the stock with a sell rating, eleven have issued a hold rating and four have issued a buy rating to the company’s stock. The stock presently has a consensus rating of Hold and a consensus target price of $158.58.
Shares of Allegiant Travel (ALGT) traded up 0.77% during mid-day trading on Friday, hitting $130.25. 4,205 shares of the company traded hands. Allegiant Travel has a 52-week low of $121.70 and a 52-week high of $182.25. The firm has a market cap of $2.11 billion, a price-to-earnings ratio of 12.22 and a beta of -0.04. The firm has a 50-day moving average price of $140.61 and a 200 day moving average price of $154.02.
Allegiant Travel (NASDAQ:ALGT) last released its quarterly earnings results on Wednesday, July 26th. The transportation company reported $2.94 EPS for the quarter, missing the consensus estimate of $2.96 by $0.02. The firm had revenue of $400.60 million for the quarter, compared to the consensus estimate of $399.58 million. Allegiant Travel had a return on equity of 37.39% and a net margin of 12.23%. The firm’s revenue was up 16.1% on a year-over-year basis. During the same quarter in the prior year, the company posted $3.68 EPS. Equities research analysts anticipate that Allegiant Travel will post $9.71 EPS for the current fiscal year.
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Allegiant Travel announced that its Board of Directors has authorized a share buyback plan on Wednesday, July 26th that allows the company to repurchase $100.00 million in shares. This repurchase authorization allows the transportation company to repurchase up to 4.3% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s management believes its shares are undervalued.
In other Allegiant Travel news, SVP Gregory Clark Anderson sold 1,500 shares of the company’s stock in a transaction dated Tuesday, May 23rd. The shares were sold at an average price of $142.08, for a total value of $213,120.00. Following the completion of the sale, the senior vice president now directly owns 15,054 shares of the company’s stock, valued at approximately $2,138,872.32. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 22.00% of the stock is currently owned by corporate insiders.
A number of large investors have recently modified their holdings of ALGT. BlackRock Inc. increased its stake in shares of Allegiant Travel by 141,260.2% in the first quarter. BlackRock Inc. now owns 1,546,481 shares of the transportation company’s stock worth $247,824,000 after buying an additional 1,545,387 shares during the last quarter. Vanguard Group Inc. raised its stake in Allegiant Travel by 4.7% in the first quarter. Vanguard Group Inc. now owns 1,157,458 shares of the transportation company’s stock worth $185,482,000 after buying an additional 51,487 shares in the last quarter. FMR LLC raised its stake in Allegiant Travel by 0.6% in the first quarter. FMR LLC now owns 932,540 shares of the transportation company’s stock worth $149,439,000 after buying an additional 6,000 shares in the last quarter. Neuberger Berman Group LLC raised its stake in Allegiant Travel by 17.6% in the first quarter. Neuberger Berman Group LLC now owns 601,416 shares of the transportation company’s stock worth $96,377,000 after buying an additional 90,037 shares in the last quarter. Finally, Dimensional Fund Advisors LP raised its stake in Allegiant Travel by 5.3% in the first quarter. Dimensional Fund Advisors LP now owns 383,712 shares of the transportation company’s stock worth $61,490,000 after buying an additional 19,245 shares in the last quarter. 82.55% of the stock is owned by institutional investors.
About Allegiant Travel
Allegiant Travel Company is a leisure travel company. The Company is focused on providing travel services and products to residents of under-served cities in the United States. It also provides air transportation under fixed fee flying arrangements. The Company’s products and services include scheduled service air transportation, air-related ancillary products and services, third-party ancillary products and services and fixed fee contract air transportation.
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