Allegiant Air (ALGT) Downgraded to Sell at Zacks Investment Research

Zacks Investment Research lowered shares of Allegiant Air (NASDAQ:ALGT) from a hold rating to a sell rating in a report published on Thursday morning.

According to Zacks, “We expect Allegiant's first-quarter results to be hurt by high labor and fuel costs. Detailed results should be out on Apr 25. Apart from high costs, the company's high debt levels also raise concerns. Capacity-related woes are also hurting the stock. In fact, the stock has declined significantly in the past month. The negative sentiment surrounding the stock can be made out from the fact that the Zacks Consensus Estimate for first-quarter earnings has declined more than 1% over the last 30 days. We are, however, encouraged by the company's shareholder-friendly measures.  Additionally, Allegiant’s initiatives to modernize its fleet are impressive.”

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Other research analysts have also recently issued research reports about the company. Morgan Stanley restated an equal weight rating and issued a $172.00 price target (up previously from $157.00) on shares of Allegiant Air in a research report on Friday, February 23rd. Stifel Nicolaus lifted their price objective on Allegiant Air from $200.00 to $210.00 and gave the stock a buy rating in a research report on Thursday, February 1st. BidaskClub cut Allegiant Air from a buy rating to a hold rating in a research report on Thursday, January 25th. Wolfe Research upgraded Allegiant Air from a market perform rating to an outperform rating in a research report on Thursday, February 1st. Finally, Imperial Capital reiterated an in-line rating and set a $165.00 price objective (up previously from $150.00) on shares of Allegiant Air in a research report on Thursday, February 1st. Two investment analysts have rated the stock with a sell rating, eight have assigned a hold rating and six have issued a buy rating to the company’s stock. Allegiant Air has a consensus rating of Hold and an average price target of $164.36.

Shares of ALGT stock opened at $151.05 on Thursday. Allegiant Air has a fifty-two week low of $111.54 and a fifty-two week high of $181.45. The firm has a market capitalization of $2,655.02, a PE ratio of 15.82, a PEG ratio of 0.54 and a beta of 0.07. The company has a debt-to-equity ratio of 1.73, a current ratio of 0.98 and a quick ratio of 0.95.

Allegiant Air (NASDAQ:ALGT) last announced its quarterly earnings results on Wednesday, January 31st. The transportation company reported $2.71 earnings per share for the quarter, beating analysts’ consensus estimates of $1.78 by $0.93. Allegiant Air had a return on equity of 31.47% and a net margin of 12.96%. The business had revenue of $378.56 million during the quarter, compared to analysts’ expectations of $377.25 million. During the same quarter last year, the business posted $2.48 earnings per share. The business’s revenue for the quarter was up 12.7% on a year-over-year basis. sell-side analysts anticipate that Allegiant Air will post 10.82 earnings per share for the current fiscal year.

In other Allegiant Air news, SVP Gregory Clark Anderson sold 1,650 shares of the firm’s stock in a transaction dated Tuesday, March 13th. The stock was sold at an average price of $178.25, for a total value of $294,112.50. Following the sale, the senior vice president now directly owns 15,935 shares of the company’s stock, valued at approximately $2,840,413.75. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Maurice J. Gallagher, Jr. sold 182,182 shares of the firm’s stock in a transaction dated Wednesday, January 17th. The stock was sold at an average price of $167.18, for a total value of $30,457,186.76. Following the completion of the sale, the chief executive officer now directly owns 3,071,196 shares in the company, valued at $513,442,547.28. The disclosure for this sale can be found here. In the last quarter, insiders have sold 196,597 shares of company stock valued at $32,838,900. 21.00% of the stock is currently owned by company insiders.

Large investors have recently modified their holdings of the business. Elkfork Partners LLC acquired a new stake in Allegiant Air in the 4th quarter worth about $184,000. Ladenburg Thalmann Financial Services Inc. boosted its stake in Allegiant Air by 47.0% in the 3rd quarter. Ladenburg Thalmann Financial Services Inc. now owns 1,258 shares of the transportation company’s stock worth $166,000 after buying an additional 402 shares during the last quarter. Shelton Capital Management acquired a new stake in Allegiant Air in the 4th quarter worth about $202,000. Teacher Retirement System of Texas acquired a new stake in Allegiant Air in the 4th quarter worth about $216,000. Finally, McKinley Carter Wealth Services Inc. acquired a new stake in Allegiant Air in the 4th quarter worth about $233,000. 90.41% of the stock is currently owned by hedge funds and other institutional investors.

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Allegiant Air Company Profile

Allegiant Travel Company, a leisure travel company, focuses on the provision of 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.

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