Alaska Air stock: buy or sell?

ALK stock price: $65.00 0.65% At close on September 20th, 2019

Updated on:
September 20th, 2019

2

Alaska Air ended today at $65.00 and inched a tiny 0.65%.

Alaska Air Group, Inc., through its subsidiaries, provides passengers and cargo air transportation services. It also focuses on providing ground and ramp handling services to airlines.

Should I buy Alaska Air stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best time to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, Alaska Air stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Alaska Air stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we collected 15 ratings published for ALK stock in the last 30 days.

The general sentiment of these ratings is bullish for ALK stock, with 8 positive ratings.
Is ALK a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-6Imperial CapitalIn-lineIn-Line
2019-7-29MacquarieOutperformNeutral
2019-6-19Imperial CapitalIn-lineIn-Line
2019-6-19Imperial Capitaln/aInline
2019-5-20Morgan Stanleyn/aOverweight
2019-4-4Bank of AmericaNeutralNeutral
2019-4-30JPMorgan Chase & Co.NeutralOverweight
2019-4-26Deutsche BankBuyBuy
2019-4-12Credit Suisse Groupn/aBuy
2019-4-12Credit Suisse Groupn/aOutperform
2019-3-8Buckingham ResearchBuyBuy
2019-3-6CitigroupNeutralNeutral
2019-2-4Vertical Researchn/aHold
2019-1-9Imperial CapitalOutperformOutperform
2019-1-28MacquarieNeutralOutperform

Alaska Air stock analysis

Daily outlook

Alaska Air inched a tiny 0.65% and closed at $65.00.

Alaska Air shares inched 0.65% to $65.00 today. Since last Sep 4th when ALK stock price broke up the SMA200d line, it gained $4.57 (7.56%). Since SMA100d and SMA200d crossed up on September 3rd, ALK price climbed $5.28 per share (8.84%). ALK is retaking the upward trend marking a new rising bottom heading to break out over $66.52.

ALK stock chart (daily)

Weekly outlook

Shares of Alaska Air ended this week at $65.00 and slightly fell a lame -1.32%. By mid August ALK plummed a dreadful -5.92% in just one week. Early September ALK rocketed an impressive 5.34% in just one week.

Early September ALK price bounced up over the SMA of 40 weeks that acted as support stopping new slides. Since mid August when SMA20w and SMA40w crossed up, ALK price gained $4.99 per share (8.32%).

ALK stock chart (weekly)

Alaska Air stock price history

Alaska Air IPO was on March 17th, 1980 at $0.56 per share1. Since then, ALK stock grew a 11,507.10%, with a yearly average of 295.10%. If you had invested right after ALK's IPO a $1,000 in Alaska Air stock in 1980, it would worth $115,071.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Alaska Air stock historical price chart

ALK stock reached 52-week highs on November at $73.59, and all-time highs 2017-03-01 with a price of 96.62.

Alaska Air stock price target is $72.20

How much a stock will be priced tomorrow or next week is quite unpredictable However, many stock price predictions are published every day by banks, financial institutions and independent analysts. You should not follow the analysts' ALK stock price predictions in the hope that they will be met as they may be wrong and not met. For the last 30 days we found 13 price targets for Alaska Air stock:
ALK stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-6Imperial CapitalRaises Target$68.00$70.002.9%
2019-7-29MacquarieDowngrades$79.00$63.00-20.3%
2019-6-19Imperial CapitalReiterates$61.00$68.0011.5%
2019-6-19Imperial CapitalRaises Target$61.00$68.0011.5%
2019-5-20Morgan StanleyRaises Target$76.00$81.006.6%
2019-4-4Bank of AmericaReiterates$70.00$62.00-11.4%
2019-4-30JPMorgan Chase & Co.Upgrades$71.00$72.001.4%
2019-4-26Deutsche BankLowers Target$73.00$68.00-6.8%
2019-4-12Credit Suisse GroupSet Price Target$74.00$76.002.7%
2019-4-12Credit Suisse GroupRaises Target$74.00$76.002.7%
2019-3-8Buckingham ResearchLowers Target$88.00$80.00-9.1%
2019-3-6CitigroupReiterates$74.00$65.00-12.2%
2019-1-9Imperial CapitalLowers Target$102.00$90.00-11.8%
(in average)$74.70$72.20-3.0%
Moving in a range from $90.00 and $62.00, the price forecast for ALK stock is $72.20. In average, analysts' outlook on ALK price forecast is negative, downsizing the forecast by a -3.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

After publishing its last earnings report on April, Alaska Air . Unfortunately, reported EPS is not yet available in our database.
ALK earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a2.5n/a
2017-Q32017-10-252.262.24-0.9%
2017-Q42018-01-250.820.831.2%
2018-Q12018-04-230.110.1427.3%
2018-Q22018-07-261.631.661.8%
2018-Q32018-10-251.81.916.1%
2018-Q42019-01-240.730.752.7%
2019-Q12019-04-220.33n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual turnover report draw a decent increase of 4.69% to $8,264.00 million dollars. In contrast, its income margin (compared to revenues) dropped to 5.29%, that is $437.00 million.

To have an up to date picture of the financial situation of Alaska Air, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual Alaska Air TTM sales up to March 2019 were $8,308.00 and earnings were $437.00 million USD. When comparing this TTM figures with the last reported annuality, we can review Alaska Air business evolution since December 2018: Annual turnover up to March, compared to lastest yearly report, stayed constant a neutral 0.53%. Similarly, profit margin (net income/sales) stayed steady at 5.29%.

ALK annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$4,960 M-$508 M10.2%-
2014$5,368 M8.23%$605 M11.3%19.09%
2015$5,598 M4.28%$848 M15.1%40.17%
2016$5,931 M5.95%$814 M13.7%-4.01%
2017$7,894 M33.10%$960 M12.2%17.94%
2018$8,264 M4.69%$437 M5.3%-54.48%
TTM $8,308 M0.53%$437 M5.3%0.00%

Quarterly financial results

Alaska Air posted $1,876.00 million in sales for 2019-Q1, a -9.11% less compared to previous quarter. Reported quarter income marked $4.00 million with a profit margin of 0.21%. Profit margin stayed constant a -0.90% compared to previous quarter when profit margin was 1.11%. When comparing turnover to same quarter last year, Alaska Air sales marked a slightly fine gain and gained a 2.40%. Looking back to recent quarterly results, Alaska Air posted 2 positive quarters in a row.
ALK quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$2,100 M-$296 M14.1%-
2017-Q3$2,120 M0.95%$266 M12.5%-10.14%
2017-Q4$1,981 M-6.56%$389 M19.6%46.24%
2018-Q1$1,832 M-7.52%$4 M0.2%-98.97%
2018-Q2$2,156 M17.69%$193 M9.0%4,725.00%
2018-Q3$2,212 M2.60%$217 M9.8%12.44%
2018-Q4$2,064 M-6.69%$23 M1.1%-89.40%
2019-Q1$1,876 M-9.11%$4 M0.2%-82.61%

Alaska Air ownership

When you are planning to invest in shares of a stock, it's always worth to overview its ownership structure.

Alaska Air shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.41% of all shares.

Bearish positions for ALK stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Alaska Air:

ALKAALALGTDALHA
Market cap$8.0 B$12.6 B$2.5 B$38.1 B$1.3 B
Total shares123.3 M445.3 M16.3 M650.2 M47.3 M
Float shares122.8 M396.1 M11.4 M574.5 M46.1 M
  - Institutional holdings (%)89.7%7.8%81.5%0.0%91.7%
  - Insider holdings (%)0.4%39.8%20.8%49.6%2.5%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Alaska Air summary

Friday, September 20th, 2019
Open$64.95
Close$65.00
Day range$64.61 - $65.46
Previous close$64.58
Session gain0.65%
Average true range$1.39
50d mov avg$62.51
100d mov avg$61.92
200d mov avg$61.03
Daily patternlb02a
Weekly pattern

Alaska Air performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. In the following table, we compare Alaska Air performance to American Airlines, Allegiant Travel, Delta Air Lines, Hawaiian, JetBlue Airways, Southwest Airlines, SkyWest and United Continental:
Stock3m6m12m
ALKAlaska Air5.31%21.20%-5.23%
AALAmerican Airlines-10.04%-6.85%-34.32%
ALGTAllegiant Travel12.08%24.57%19.26%
DALDelta Air Lines5.41%19.31%0.93%
HAHawaiian4.93%10.59%-32.06%
JBLUJetBlue Airways-8.98%6.21%-14.93%
LUVSouthwest Airline...7.85%12.50%-12.47%
SKYWSkyWest2.42%15.28%1.49%
UALUnited Continenta...2.73%11.88%-0.95%

Alaska Air competitors

One check before investing in any stock is to have a look a list of its competitors, in this case for Alaska Air. We chose 8 companies as Alaska Air competitors as they are in the same industry or have similar market objectives.

Latest Alaska Air stock news