Allegiant Travel CO's (NASDAQ:ALGT) Executive Vice President and Chief Information Officer, Robert Paul Wilson III, has sold 750 shares of the company's common stock, according to a recent SEC filing. The transaction, dated June 4, 2024, involved shares sold at a price of $53.0 each, totaling $39,750.
The sale has adjusted Wilson's holdings in the company, leaving him with a total of 74,948 shares of Allegiant Travel CO following the transaction. The filing, which provides insight into the executive's trading activities, was signed under power of attorney by Robert B. Goldberg and was submitted on June 6, 2024.
Allegiant Travel CO, known for its scheduled air transportation services, has its shares publicly traded under the ticker symbol ALGT. The company, headquartered in Las Vegas, Nevada, has been a notable player in the airline industry.
Investors and market watchers often pay close attention to insider transactions as they can provide valuable insights into an executive's perspective on the company's current valuation and future prospects.
In other recent news, Allegiant Travel Company (NASDAQ:ALGT) has been the subject of multiple financial developments. The company reported a decrease in April passenger traffic, with a 12.1% decline in passengers and a 13.0% fall in revenue passenger miles compared to the same month last year. The company also indicated a reduction in available seat miles and load factor for scheduled services.
On the financial front, the U.S. Treasury Department is set to auction warrants it holds in various U.S. airlines, including Allegiant, with the aim of gathering a minimum of $492 million. The warrants were obtained as part of the conditions for COVID-19 relief aid given to the airlines.
Recently, TD Cowen adjusted its outlook on Allegiant, reducing the price target from $65.00 to $60.00, while maintaining a Hold rating on the stock. This revision reflects the latest financial data and management's comments regarding future expectations.
Despite facing a challenging first quarter in 2024 due to increased expenses and issues with pilot availability, Allegiant remains optimistic about its future profitability. The airline is working on multiple fronts to address these setbacks, including optimizing revenue software, finalizing Boeing (NYSE:BA) deliveries, and negotiating a new pilot agreement. These are all recent developments that investors should consider while making financial decisions.
InvestingPro Insights
Amidst recent insider trading activity, Allegiant Travel CO (NASDAQ:ALGT) presents a mixed financial landscape. With a market capitalization of $939.94 million, the company's valuation metrics provide a snapshot of its current standing. The P/E ratio, a measure of a company's current share price relative to its per-share earnings, stands at 16.69. However, when adjusted for the last twelve months as of Q1 2024, the P/E ratio appears more favorable at 11.13, suggesting a potentially undervalued stock in comparison to earnings.
Despite a modest revenue growth of 2.66% over the last twelve months as of Q1 2024, Allegiant Travel CO's financials reveal some challenges. An InvestingPro Tip highlights that the company is experiencing a significant debt burden and is quickly burning through cash. This is further evidenced by the fact that short-term obligations exceed liquid assets, indicating potential liquidity issues. Additionally, the company's stock price has shown considerable volatility, with a 28.14% decline over the last three months, and a more pronounced 49.19% drop over the past year.
On a positive note, analysts predict that Allegiant Travel CO will be profitable this year, and the company has indeed been profitable over the last twelve months. The gross profit margin stands at a healthy 25.0%, and the company offers a compelling dividend yield of 4.52% as of the last recorded date. For investors looking for in-depth analysis, there are over 10 additional InvestingPro Tips available on Allegiant Travel CO, which can be accessed at InvestingPro. To enhance the value of your research, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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