Allegiant Travel (NASDAQ:ALGT) Shares Gap Down on Disappointing Earnings

Allegiant Travel (NASDAQ:ALGT - Get Free Report) gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $62.96, but opened at $56.50. Allegiant Travel shares last traded at $62.11, with a volume of 75,613 shares changing hands.

The transportation company reported ($2.02) earnings per share for the quarter, missing analysts' consensus estimates of ($1.85) by ($0.17). The business had revenue of $562.20 million during the quarter, compared to the consensus estimate of $561.24 million. Allegiant Travel had a negative net margin of 0.57% and a positive return on equity of 3.48%.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on ALGT shares. Susquehanna increased their price objective on Allegiant Travel from $40.00 to $55.00 and gave the stock a "neutral" rating in a research note on Wednesday, October 9th. Evercore ISI raised their price objective on Allegiant Travel from $60.00 to $65.00 and gave the company an "in-line" rating in a research note on Thursday, October 3rd. TD Cowen upped their target price on shares of Allegiant Travel from $33.00 to $42.00 and gave the stock a "hold" rating in a research note on Thursday, October 3rd. Barclays dropped their price target on shares of Allegiant Travel from $55.00 to $45.00 and set an "equal weight" rating on the stock in a research report on Wednesday, July 10th. Finally, Deutsche Bank Aktiengesellschaft downgraded shares of Allegiant Travel from a "buy" rating to a "hold" rating and reduced their price objective for the stock from $75.00 to $53.00 in a research report on Monday, July 8th. Two analysts have rated the stock with a sell rating, six have assigned a hold rating and one has given a buy rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average target price of $63.13.

Insider Buying and Selling at Allegiant Travel

In related news, COO Keny Frank Wilper sold 635 shares of the business's stock in a transaction dated Wednesday, October 23rd. The stock was sold at an average price of $62.69, for a total value of $39,808.15. Following the sale, the chief operating officer now directly owns 16,353 shares in the company, valued at approximately $1,025,169.57. The trade was a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. In other news, Director Gary Ellmer sold 1,000 shares of the firm's stock in a transaction that occurred on Monday, August 26th. The shares were sold at an average price of $45.00, for a total value of $45,000.00. Following the completion of the transaction, the director now directly owns 7,490 shares in the company, valued at approximately $337,050. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Keny Frank Wilper sold 635 shares of the company's stock in a transaction that occurred on Wednesday, October 23rd. The stock was sold at an average price of $62.69, for a total transaction of $39,808.15. Following the sale, the chief operating officer now directly owns 16,353 shares in the company, valued at $1,025,169.57. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 2,334 shares of company stock worth $117,158 over the last three months. 15.80% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. SeaCrest Wealth Management LLC boosted its stake in Allegiant Travel by 39.8% during the first quarter. SeaCrest Wealth Management LLC now owns 5,025 shares of the transportation company's stock valued at $378,000 after buying an additional 1,430 shares during the period. BNP Paribas Financial Markets grew its holdings in shares of Allegiant Travel by 369.1% during the first quarter. BNP Paribas Financial Markets now owns 23,874 shares of the transportation company's stock worth $1,796,000 after purchasing an additional 18,785 shares in the last quarter. Janney Montgomery Scott LLC increased its position in shares of Allegiant Travel by 18.8% in the first quarter. Janney Montgomery Scott LLC now owns 7,799 shares of the transportation company's stock worth $587,000 after purchasing an additional 1,235 shares during the last quarter. Capstone Investment Advisors LLC purchased a new stake in Allegiant Travel in the first quarter valued at approximately $834,000. Finally, Empowered Funds LLC lifted its position in Allegiant Travel by 7.8% during the first quarter. Empowered Funds LLC now owns 71,275 shares of the transportation company's stock valued at $5,361,000 after purchasing an additional 5,175 shares during the last quarter. 85.81% of the stock is currently owned by hedge funds and other institutional investors.

Allegiant Travel Trading Up 3.3 %

The stock's 50 day simple moving average is $50.88 and its 200 day simple moving average is $50.85. The firm has a market cap of $1.19 billion, a PE ratio of -70.74, a PEG ratio of 3.11 and a beta of 1.65. The company has a debt-to-equity ratio of 1.30, a quick ratio of 0.71 and a current ratio of 0.74.

About Allegiant Travel

Allegiant Travel Company, a leisure travel company, provides 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. As of February 1, 2024, it operated a fleet of 126 Airbus A320 series aircraft.