Is Alaska Air Stock a Good Investment?
Alaska Air Investment Advice | ALK |
- Examine Alaska Air's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Alaska Air's leadership team and their track record. Good management can help Alaska Air navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Passenger Airlines space and any emerging trends that could impact Alaska Air's business and its evolving consumer preferences.
- Compare Alaska Air's performance and market position to its competitors. Analyze how Alaska Air is positioned in terms of product offerings, innovation, and market share.
- Check if Alaska Air pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Alaska Air's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Alaska Air Group stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Alaska Air Group is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Solid | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Very Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine Alaska Air Stock
Researching Alaska Air's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 88.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.51. Some equities with similar Price to Book (P/B) outperform the market in the long run. Alaska Air Group has Price/Earnings To Growth (PEG) ratio of 1.3. The entity last dividend was issued on the 14th of February 2020. The firm had 2:1 split on the 10th of July 2014.
To determine if Alaska Air is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Alaska Air's research are outlined below:
| Alaska Air Group has 3.82 B in debt with debt to equity (D/E) ratio of 1.03, which is OK given its current industry classification. Alaska Air Group has a current ratio of 0.79, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Alaska to invest in growth at high rates of return. | |
| Alaska Air Group has a very strong financial position based on the latest SEC filings | |
| Over 88.0% of Alaska Air shares are held by institutions such as insurance companies | |
| Latest headline from finance.yahoo.com: Alaska Airlines wins 2024 Business Traveler Award for Best Inflight Food Beverage |
Alaska Air Quarterly Accounts Payable |
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Alaska Air uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Alaska Air Group. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Alaska Air's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 18th of April 2024 Upcoming Quarterly Report | View | |
| 23rd of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 23rd of January 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Alaska Air's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Alaska Air's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
1997-04-21 | 1997-03-31 | -0.09 | -0.1 | -0.01 | 11 | ||
2018-04-23 | 2018-03-31 | 0.12 | 0.14 | 0.02 | 16 | ||
2012-04-19 | 2012-03-31 | 0.18 | 0.2 | 0.02 | 11 | ||
2011-04-21 | 2011-03-31 | 0.18 | 0.2 | 0.02 | 11 | ||
2007-04-26 | 2007-03-31 | -0.08 | -0.1 | -0.02 | 25 | ||
1996-07-18 | 1996-06-30 | 0.2 | 0.22 | 0.02 | 10 | ||
2013-04-25 | 2013-03-31 | 0.28 | 0.31 | 0.03 | 10 | ||
2008-01-24 | 2007-12-31 | -0.08 | -0.11 | -0.03 | 37 |
Know Alaska Air's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Alaska Air is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Alaska Air Group backward and forwards among themselves. Alaska Air's institutional investor refers to the entity that pools money to purchase Alaska Air's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Balyasny Asset Management Llc | 2024-09-30 | 2.1 M | Geode Capital Management, Llc | 2024-09-30 | 2.1 M | Massachusetts Financial Services Company | 2024-09-30 | 1.6 M | Charles Schwab Investment Management Inc | 2024-09-30 | 1.4 M | Bank Of America Corp | 2024-06-30 | 1.3 M | Frontier Capital Management Co Inc | 2024-09-30 | 1.2 M | Millennium Management Llc | 2024-06-30 | 1.1 M | Fmr Inc | 2024-09-30 | 1.1 M | Barclays Plc | 2024-06-30 | 1 M | Blackrock Inc | 2024-06-30 | 16.2 M | Vanguard Group Inc | 2024-09-30 | 13.6 M |
Alaska Air's market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 6.72 B.Market Cap |
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Alaska Air's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.02 | 0.02 | |
| Return On Capital Employed | 0.03 | 0.05 | |
| Return On Assets | 0.01 | 0.02 | |
| Return On Equity | 0.06 | 0.06 |
Determining Alaska Air's profitability involves analyzing its financial statements and using various financial metrics to determine if Alaska Air is a good buy. For example, gross profit margin measures Alaska Air's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Alaska Air's profitability and make more informed investment decisions.
Alaska Air's Earnings Breakdown by Geography
Evaluate Alaska Air's management efficiency
Alaska Air Group has Return on Asset of 0.0286 % which means that on every $100 spent on assets, it made $0.0286 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.0751 %, implying that it generated $0.0751 on every 100 dollars invested. Alaska Air's management efficiency ratios could be used to measure how well Alaska Air manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Alaska Air's Return On Tangible Assets are quite stable compared to the past year. Return On Capital Employed is expected to rise to 0.05 this year, although the value of Return On Equity will most likely fall to 0.06. At this time, Alaska Air's Total Current Liabilities is quite stable compared to the past year. Liabilities And Stockholders Equity is expected to rise to about 15.3 B this year, although the value of Non Current Liabilities Other will most likely fall to about 333.2 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 32.29 | 33.91 | |
| Tangible Book Value Per Share | 16.33 | 17.15 | |
| Enterprise Value Over EBITDA | 6.71 | 7.90 | |
| Price Book Value Ratio | 1.21 | 1.26 | |
| Enterprise Value Multiple | 6.71 | 7.90 | |
| Price Fair Value | 1.21 | 1.26 | |
| Enterprise Value | 3.6 B | 3.7 B |
The decision-making processes within Alaska Air are key to its success in a competitive market. By evaluating these processes, we assess the stock's potential for future gains.
Beta 1.593 |
Basic technical analysis of Alaska Stock
As of the 28th of November, Alaska Air shows the risk adjusted performance of 0.2437, and Mean Deviation of 1.55. Alaska Air Group technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Alaska Air's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Alaska Air insiders, such as employees or executives, is commonly permitted as long as it does not rely on Alaska Air's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Alaska Air insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Alaska Air's Outstanding Corporate Bonds
Alaska Air issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Alaska Air Group uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Alaska bonds can be classified according to their maturity, which is the date when Alaska Air Group has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Understand Alaska Air's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Alaska Air's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.2437 | |||
| Market Risk Adjusted Performance | 0.5922 | |||
| Mean Deviation | 1.55 | |||
| Semi Deviation | 0.9351 | |||
| Downside Deviation | 1.54 | |||
| Coefficient Of Variation | 322.01 | |||
| Standard Deviation | 2.05 | |||
| Variance | 4.21 | |||
| Information Ratio | 0.247 | |||
| Jensen Alpha | 0.4973 | |||
| Total Risk Alpha | 0.3039 | |||
| Sortino Ratio | 0.3281 | |||
| Treynor Ratio | 0.5822 | |||
| Maximum Drawdown | 9.94 | |||
| Value At Risk | (2.09) | |||
| Potential Upside | 4.71 | |||
| Downside Variance | 2.38 | |||
| Semi Variance | 0.8744 | |||
| Expected Short fall | (1.86) | |||
| Skewness | 0.6038 | |||
| Kurtosis | 0.7263 |
| Risk Adjusted Performance | 0.2437 | |||
| Market Risk Adjusted Performance | 0.5922 | |||
| Mean Deviation | 1.55 | |||
| Semi Deviation | 0.9351 | |||
| Downside Deviation | 1.54 | |||
| Coefficient Of Variation | 322.01 | |||
| Standard Deviation | 2.05 | |||
| Variance | 4.21 | |||
| Information Ratio | 0.247 | |||
| Jensen Alpha | 0.4973 | |||
| Total Risk Alpha | 0.3039 | |||
| Sortino Ratio | 0.3281 | |||
| Treynor Ratio | 0.5822 | |||
| Maximum Drawdown | 9.94 | |||
| Value At Risk | (2.09) | |||
| Potential Upside | 4.71 | |||
| Downside Variance | 2.38 | |||
| Semi Variance | 0.8744 | |||
| Expected Short fall | (1.86) | |||
| Skewness | 0.6038 | |||
| Kurtosis | 0.7263 |
Consider Alaska Air's intraday indicators
Alaska Air intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Alaska Air stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 11076.15 | |||
| Daily Balance Of Power | (0.40) | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 52.84 | |||
| Day Typical Price | 52.78 | |||
| Price Action Indicator | (0.28) | |||
| Period Momentum Indicator | (0.25) | |||
| Relative Strength Index | 71.07 |
Alaska Air Corporate Filings
8K | 26th of November 2024 An amendment to a previously filed Form 8-K | ViewVerify |
10Q | 8th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
F4 | 7th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 31st of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
Alaska Stock media impact
Far too much social signal, news, headlines, and media speculation about Alaska Air that are available to investors today. That information is available publicly through Alaska media outlets and privately through word of mouth or via Alaska internal channels. However, regardless of the origin, that massive amount of Alaska data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Alaska Air news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Alaska Air relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Alaska Air's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Alaska Air alpha.
Alaska Air Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Alaska Air can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Alaska Air Group Historical Investor Sentiment
Investor biases related to Alaska Air's public news can be used to forecast risks associated with an investment in Alaska. The trend in average sentiment can be used to explain how an investor holding Alaska can time the market purely based on public headlines and social activities around Alaska Air Group. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Alaska Air's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Alaska Air and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Alaska Air news discussions. The higher the estimate score, the more favorable the investor's outlook on Alaska Air.
Alaska Air Corporate Directors
| Jessie Knight | Independent Director | Profile | |
| Helvi Sandvik | Independent Director | Profile | |
| Patricia Bedient | Lead Independent Director | Profile | |
| Susan Li | Independent Director | Profile |
Already Invested in Alaska Air Group?
The danger of trading Alaska Air Group is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Alaska Air is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Alaska Air. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Alaska Air Group is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Alaska Air Group is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Alaska Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Alaska Air Group Stock. Highlighted below are key reports to facilitate an investment decision about Alaska Air Group Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Alaska Air Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis. You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Is Passenger Airlines space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Alaska Air. If investors know Alaska will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Alaska Air listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.704 | Earnings Share 2.51 | Revenue Per Share 85.034 | Quarterly Revenue Growth 0.082 | Return On Assets 0.0286 |
The market value of Alaska Air Group is measured differently than its book value, which is the value of Alaska that is recorded on the company's balance sheet. Investors also form their own opinion of Alaska Air's value that differs from its market value or its book value, called intrinsic value, which is Alaska Air's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Alaska Air's market value can be influenced by many factors that don't directly affect Alaska Air's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Alaska Air's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Alaska Air is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alaska Air's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.