Zacks Investment Research upgraded shares of Allegiant Travel (NASDAQ:ALGT – Get Rating) from a strong sell rating to a hold rating in a research report report published on Monday morning, Zacks.com reports. They currently have $150.00 price objective on the transportation company’s stock.
According to Zacks, “We expect Allegiant Travel's second-quarter 2022 results to be hurt by escalating fuel costs. ALGT expects fuel price per gallon to be $4.00 in the June quarter. Average fuel cost per gallon (scheduled) surged 65.1% to $3.07 in first-quarter 2022. In March quarter, total operating expenses also surged 93.6% year over year in the first quarter. Such escalating expenses hurt bottom-line growth. However, upbeat air-travel demand bodes well and the carrier expects total operating revenues for the current quarter to move up 28-32% from second-quarter 2019 actuals. Allegiant Travel's fleet modernization initiatives are also encouraging. Allegiant Travel's strong cash balance is also impressive.”
A number of other equities research analysts have also weighed in on ALGT. StockNews.com initiated coverage on shares of Allegiant Travel in a report on Thursday, March 31st. They set a hold rating for the company. Barclays dropped their target price on Allegiant Travel from $275.00 to $220.00 in a research report on Thursday, April 7th. Morgan Stanley reduced their price target on Allegiant Travel to $250.00 and set an overweight rating for the company in a report on Tuesday, May 17th. Deutsche Bank Aktiengesellschaft dropped their price objective on Allegiant Travel from $275.00 to $247.00 in a report on Thursday, February 3rd. Finally, TheStreet cut Allegiant Travel from a b- rating to a c+ rating in a research note on Thursday, February 3rd. Five investment analysts have rated the stock with a hold rating and seven have given a buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of Buy and a consensus target price of $226.20.
Allegiant Travel (NASDAQ:ALGT – Get Rating) last announced its earnings results on Wednesday, May 4th. The transportation company reported ($0.12) EPS for the quarter, missing the consensus estimate of $0.10 by ($0.22). The company had revenue of $500.10 million for the quarter, compared to analysts’ expectations of $495.33 million. Allegiant Travel had a net margin of 7.11% and a return on equity of 7.66%. The business’s quarterly revenue was up 79.2% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($3.58) earnings per share. Equities analysts anticipate that Allegiant Travel will post 5.48 EPS for the current year.
In other news, CEO Maurice J. Gallagher, Jr. sold 2,193 shares of the company’s stock in a transaction dated Thursday, March 10th. The shares were sold at an average price of $145.85, for a total transaction of $319,849.05. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Robert Paul Wilson III sold 418 shares of Allegiant Travel stock in a transaction dated Friday, March 4th. The shares were sold at an average price of $157.88, for a total transaction of $65,993.84. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 5,254 shares of company stock valued at $819,966. Insiders own 16.70% of the company’s stock.
Several hedge funds and other institutional investors have recently modified their holdings of the company. Amundi Pioneer Asset Management Inc. acquired a new stake in Allegiant Travel in the 1st quarter valued at approximately $155,000. Morgan Stanley grew its position in Allegiant Travel by 146.2% in the 2nd quarter. Morgan Stanley now owns 196,844 shares of the transportation company’s stock valued at $38,189,000 after buying an additional 116,891 shares in the last quarter. Advisor Group Holdings Inc. increased its stake in Allegiant Travel by 3.3% during the 3rd quarter. Advisor Group Holdings Inc. now owns 3,684 shares of the transportation company’s stock valued at $721,000 after buying an additional 119 shares during the period. Swiss National Bank raised its position in shares of Allegiant Travel by 8.9% during the 3rd quarter. Swiss National Bank now owns 9,828 shares of the transportation company’s stock worth $1,921,000 after buying an additional 800 shares in the last quarter. Finally, Barclays PLC lifted its stake in shares of Allegiant Travel by 12.7% in the 3rd quarter. Barclays PLC now owns 21,647 shares of the transportation company’s stock worth $4,232,000 after acquiring an additional 2,435 shares during the period. Institutional investors and hedge funds own 98.49% of the company’s stock.
About Allegiant Travel (Get Rating)
Allegiant Travel Company, a leisure travel company, provides 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. As of February 14, 2022, it operated a fleet of 110 Airbus A320 series aircraft.
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