Shane R. Tackett, Executive Vice President and Chief Financial Officer of Alaska Air Group, Inc. (NYSE:ALK), recently sold 5,000 shares of the company's common stock. The transaction, dated December 11, 2024, was executed at a weighted average price of approximately $63.56 per share, resulting in a total sale value of $317,783. The sale comes as the $8.06 billion airline has seen its stock surge approximately 13% in the past week, with InvestingPro data indicating the stock is currently in overbought territory.
Following this sale, Tackett retains ownership of 27,362 shares in the company. This figure includes shares acquired through the Alaska Air Group Employee Stock Purchase Plan earlier in the year. The stock is trading near its 52-week high of $65.62, reflecting strong momentum that has delivered a 70% return over the past year. Get access to 12 more exclusive InvestingPro Tips and comprehensive analysis in our Pro Research Report.
In other recent news, Alaska Air Group Inc. has garnered positive attention from several analyst firms. TD Cowen increased the company's price target to $78, maintaining a Buy rating, and named Alaska Air as their second Top Pick. The airline's management outlined objectives through 2027, including network expansion, product enhancement, loyalty program growth, and cargo operations boost, expecting these initiatives to lead to an additional $1 billion in pre-tax profit and an EPS exceeding $10.
Simultaneously, Melius Research reiterated a Buy rating for Alaska Air, underscoring the potential for the company's earnings to double over the next three years. The firm suggests that even if Alaska Air achieves only 80% of its projected targets, the share price could reach into triple digits.
Moreover, Alaska Air has predicted strong earnings growth, forecasting an EPS of at least $5.75 by 2025, surpassing the consensus estimate. The company also aims to drive double-digit profit margins between 11-13% and increase EPS to a minimum of $10 by 2027. As part of its expansion plans, Alaska Air will launch a new global gateway from Seattle, introducing nonstop routes to Tokyo Narita and Seoul Incheon.
Finally, the Transportation Security Administration (TSA) experienced its busiest day in history on December 1st, screening over 3.087 million individuals at airports across the United States. This surge in passenger numbers is attributed to travelers returning home following the Thanksgiving holiday.
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