Alaska Air stock: buy or sell?

ALK stock price: $57.37 -2.45% At close on February 26th, 2020

Updated on:
February 26th, 2020

1

After sliding a dreadful -7.14% yesterday, Alaska Air closed today at $57.37 and dropped a tragic -2.45%. With Wednesday it's been 3 red days in a row.

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?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. That's why is so important to define your own trading plan that fits your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

None of our preferred buy setups matches with Alaska Air stock situation right now, hence this is not a suitable entry point.

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?

Financial institutions and banks post stock ratings everyday. Unfortunately, we couldn't detect any rating for ALK stock for the last month.

Alaska Air stock analysis

Daily outlook

After sliding a dreadful -7.14% yesterday, Alaska Air closed today at $57.37 and dropped a tragic -2.45%.

After sliding a dreadful -7.14% yesterday, Alaska Air closed today at $57.37 and dropped a tragic -2.45%.

ALK stock chart (daily)

Weekly outlook

Shares of Alaska Air plunged a scary -12.32% this week.

Price pattern shows an uptrend with two rising tops and bottoms, and now trading upwards to the $71.46 resistance. Since SMA20w and SMA40w crossed up by mid August 2019, ALK price slid a -3.37%.

ALK stock chart (weekly)

Alaska Air stock price history

Alaska Air IPO was on March 17th, 1980 at $0.00 per share1. Since then, ALK stock grew a inf%, with an average of inf% per year. If you had invested right after ALK's IPO a $1,000 in Alaska Air stock in 1980, it would worth $inf 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 $71.46, and all-time highs 2017-03-01 with a price of 95.59.

Alaska Air stock price target

How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last 30 days we have not found any price prediction for Alaska Air stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since April, when Alaska Air posted its last earnings report, it . As soon as we get its posted EPS from the earnings report, we will extend this review.
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

In 2018, Alaska Air annual turnover inched a good 4.69% to $8,264.00 M dollars from $7,894.00 marked in 2017. Nonetheless, its profit margin (compared to revenues) eased to 5.29%, that is $437.00 million.

Alaska Air fiscal year ends in December, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Alaska Air TTM sales up to March 2019 were $8,308.00 and income $437.00 M USD. When comparing this TTM figures with the last reported annuality, we can esteem Alaska Air business evolution since December 2018: Annual sales up to March, compared to lastest yearly report, remained stable a neutral 0.53%. Similarly, profit margin (net income/sales) remained stable 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 revenues for 2019-Q1, a -9.11% less compared to previous quarter. Reported quarter earnings marked $4.00 million with a profit margin of 0.21%. Profit margin remained steady a -0.90% compared to previous quarter when profit margin was 1.11%. When comparing revenues to same quarter last year, Alaska Air sales marked a slightly good growth and appreciated a 2.40%. Looking back to recent quarterly results, Alaska Air posted 2 negative 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 buy a company, it's always worth to check its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Alaska Air, 0.44% of all outstanding shares are owned by its staff.

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

For a better context understanding, the following table shows ownership data compared to other related stocks:

ALK
Market cap$7.1 B
Total shares123.0 M
Float shares122.4 M
  - Institutional holdings (%)90.4%
  - Insider holdings (%)0.4%
Shares in short selling0.0%

Alaska Air summary

Wednesday, February 26th, 2020
Open$59.37
Close$57.37
Day range$57.20 - $59.66
Previous close$58.81
Session gain-2.45%
Average true range$1.81
50d mov avg$65.86
100d mov avg$66.81
200d mov avg$64.18
Daily pattern
Weekly pattern lb02a

Alaska Air performance

To measure stock performance is always good to compare with competitors or related stocks. We compared Alaska Air against in the following table:
Stock3m6m12m
ALKAlaska Air-16.39%-2.91%-4.34%

Alaska Air competitors

Unfortunately, we could not find any public company that could be defined as Alaska Air competitor. This doesn't mean Alaska Air does not have any competitor in the market, it's just we could not detected it.

    Latest Alaska Air stock news