Traders Purchase Large Volume of Call Options on Alaska Air Group (NYSE:ALK)

Alaska Air Group, Inc. (NYSE:ALK) was the recipient of unusually large options trading on Monday. Stock traders acquired 21,938 call options on the stock. This represents an increase of 168% compared to the typical volume of 8,184 call options.

Wall Street Analyst Weigh In

Several research firms have weighed in on ALK. TD Cowen boosted their price objective on Alaska Air Group from $85.00 to $110.00 and gave the stock a “buy” rating in a research report on Friday, January 24th. Morgan Stanley boosted their target price on shares of Alaska Air Group from $70.00 to $90.00 and gave the company an “overweight” rating in a research note on Wednesday, December 11th. Barclays raised their price target on shares of Alaska Air Group from $55.00 to $80.00 and gave the stock an “overweight” rating in a research note on Thursday, November 14th. Bank of America raised their price target on Alaska Air Group from $70.00 to $80.00 and gave the stock a “buy” rating in a report on Friday, January 17th. Finally, The Goldman Sachs Group upped their price target on Alaska Air Group from $70.00 to $79.00 and gave the company a “buy” rating in a research report on Tuesday, January 14th. One analyst has rated the stock with a hold rating and thirteen have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $77.00.

Insiders Place Their Bets

In related news, CEO Joseph A. Sprague sold 2,325 shares of the stock in a transaction on Wednesday, December 18th. The shares were sold at an average price of $64.38, for a total transaction of $149,683.50. Following the transaction, the chief executive officer now directly owns 19,340 shares of the company’s stock, valued at $1,245,109.20. This represents a 10.73 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Andrew R. Harrison sold 6,600 shares of the firm’s stock in a transaction on Thursday, February 20th. The shares were sold at an average price of $76.28, for a total value of $503,448.00. Following the transaction, the executive vice president now owns 34,030 shares in the company, valued at approximately $2,595,808.40. This trade represents a 16.24 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 189,198 shares of company stock worth $13,415,604 over the last three months. Insiders own 0.68% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Maryland State Retirement & Pension System lifted its stake in Alaska Air Group by 0.3% in the 4th quarter. Maryland State Retirement & Pension System now owns 49,905 shares of the transportation company’s stock worth $3,231,000 after purchasing an additional 147 shares in the last quarter. Oregon Public Employees Retirement Fund raised its stake in Alaska Air Group by 0.5% during the fourth quarter. Oregon Public Employees Retirement Fund now owns 29,816 shares of the transportation company’s stock valued at $1,931,000 after purchasing an additional 160 shares in the last quarter. Avior Wealth Management LLC raised its position in Alaska Air Group by 44.8% during the fourth quarter. Avior Wealth Management LLC now owns 588 shares of the transportation company’s stock valued at $38,000 after purchasing an additional 182 shares during the period. Savant Capital LLC lifted its holdings in Alaska Air Group by 3.4% during the 4th quarter. Savant Capital LLC now owns 6,284 shares of the transportation company’s stock valued at $407,000 after buying an additional 206 shares in the last quarter. Finally, Verdence Capital Advisors LLC raised its stake in shares of Alaska Air Group by 2.2% during the third quarter. Verdence Capital Advisors LLC now owns 10,180 shares of the transportation company’s stock valued at $460,000 after acquiring an additional 215 shares in the last quarter. 81.90% of the stock is owned by hedge funds and other institutional investors.

Alaska Air Group Stock Performance

Shares of NYSE:ALK traded down $5.10 during midday trading on Monday, reaching $55.54. 2,461,730 shares of the company’s stock traded hands, compared to its average volume of 2,786,467. The stock has a 50 day moving average of $69.81 and a 200 day moving average of $55.93. Alaska Air Group has a one year low of $32.62 and a one year high of $78.08. The company has a market cap of $6.84 billion, a price-to-earnings ratio of 18.12, a P/E/G ratio of 0.43 and a beta of 1.50. The company has a debt-to-equity ratio of 1.04, a quick ratio of 0.58 and a current ratio of 0.61.

Alaska Air Group (NYSE:ALK) last released its quarterly earnings results on Wednesday, January 22nd. The transportation company reported $0.97 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.45 by $0.52. Alaska Air Group had a return on equity of 14.66% and a net margin of 3.37%. As a group, equities research analysts anticipate that Alaska Air Group will post 6.03 EPS for the current fiscal year.

About Alaska Air Group

Alaska Air Group, Inc, through its subsidiaries, operates airlines. It operates through three segments: Mainline, Regional, and Horizon. The company offers scheduled air transportation services on Boeing jet aircraft for passengers and cargo in the United States, and in parts of Canada, Mexico, Costa Rica, Belize, Guatemala, and the Bahamas; and for passengers across a shorter distance network within the United States, Canada, and Mexico.