On May 28, 2023, investment management firm GW&K Investment Management LLC disclosed its decreased holdings in Allegiant Travel Co (NASDAQ:ALGT) by 5.8% during the fourth quarter. The firm now owns approximately 1.05% of Allegiant Travel’s total worth, valuing at $13,110,000 as of its most recent filing with the SEC.
Allegiant Travel Co is a leader in the travel industry that provides a wide range of travel services such as scheduled service air transportation, air-related travel services and products, third-party travel products, and fixed fee contract air transportation. The company operates through different segments such as Airline, Sunseeker Resort, and Other non-Airline services.
On Friday morning at the beginning of trading hours (NASDAQ ALGT opened), shares were valued at $98.95 with a market cap of $1.82 billion. Despite current global economic conditions affecting Airline companies throughout this year hence reducing share prices negatively across the board in transportation markets for now a part three-year period; it recorded an annual low of $62.94 and an annual high of $152.32 in stock pricing.
Due to this past year’s strenuous financial circumstances created by both global economic conditions and restricted movement due to government-imposed lockdown measures; airlines worldwide have suffered from lower demand for air travel resulting from cancelled business trips/leisure travels thereby significantly decreasing their revenue streams.
Even so, Allegiant Travel has remained resilient amidst these challenges- thanks partially to their diverse array of non-airline related services such as their prominent Sunseeker Resort organization staying operational despite external restrictions thereby generating additional revenue that has helped keep them financially buoyant.
In addition to this diversification strategy implemented by Allegiant Travel during times like these that have saved many businesses that took comparable precautions over time globally; they maintain impressive financial metrics with a debt-to-equity ratio of 1.43 and quick ratio alongside current ratio values of 1.13 and 1.16, respectively.
Markedly, Allegiant Travel’s stock price has fluctuated over the past 200-day simple moving average to an impressive $87.83 that dropped slightly by $1.80 over the last recorded 50-day simple moving average at $95.71- both themselves being positive indicators for investment prospects despite periodic fluctuations throughout this year due to renewed COVID19 outbreaks surfacing in certain regions globally stifling air traffic plans put in place by different airlines affecting their company’s performance.
In conclusion, Allegiant Travel remains a high potential investment opening with end-users returning to airline travel once economic recovery gains traction and easing pandemic restrictions globally ensuring increased safety measures set in place for travelers efficiently addressing public health concerns created during these difficult times leading back to increasing investor interest in the entire transportation sector as recovery prospects are anticipated to improve over the next few years.
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Allegiant Travel Co sees surge in institutional investor interest and corporate insider selling
Allegiant Travel Co, a US-based travel services provider, recently reported its quarterly results and has attracted the attention of several hedge funds and institutional investors. Quadrant Capital Group LLC led the index by growing its stake in shares of Allegiant Travel by 770.1% during the third quarter of 2023. Signaturefd LLC and Captrust Financial Advisors also raised their positions in the transportation company’s stock by over 500% and 20%, respectively. Point72 Hong Kong Ltd acquired a new position in shares of Allegiant Travel during the same period valued at around $129,000. Penserra Capital Management LLC raised its position in Allegiant’s stocks by 20% during the third quarter. These updates mean that now, 85.77% of Allegiant’s stock is owned by institutional investors and hedge funds.
On Monday, February 27th, CMO Scott Wayne Deangelo sold 1,382 shares of Allegiant Travel’s business stock at an average price of $102.80 each for a total value of $142,069.60. Following Deangelo’s transaction, he holds13,005 shares worth approximately $1,336,914 with titled CMO’S chief marketing officer.
Meanwhile, EVP Robert Paul Wilson III recently sold his shares for $107 apiece on May 5th this year that sums up to a total value of $116186.40 along with other corporate insiders who have sold approximately three thousand four hundred sixty-two (3,462) worth around almost three hundred fifty-nine thousand dollars ($358926) in the last ninety days that represent fifteen point ten percentage (15.10%) as corporate insiders own its portion therein.
Founded in January 1997 by Maurice Gallagher Jr., Allegiant Travel Co provides scheduled air transportation through southwest America with exciting offers on products such as Airline, Sunseeker Resort and Other non-Airline tours to customers across the country. During its last quarterly results in May 2023, ALGT reported earnings per share (EPS) of $3.04, beating the consensus estimate of $2.29 by eighty cents ($0.75). The company reported a net margin of 2.71% and a return on equity of 9.23%, with quarterly revenue surging almost thirty percent (29.9%) year-on-year.
Several analyst reports suggest that Allegiant Travel Co’s stock is worth watching, with Susquehanna upping its price objective from $90 to $105 per share in May 2023. However, Bank of America lowered its rating on the stock from neutral to underperform while Barclays cut shares from overweight to equal weight but increased its target price from $96 to $105 per piece in March this year. At present, one sell rating, ten hold ratings and three buy ratings result in an average Hold rating for Allegiant Travel’s stocks among analysts with an estimated consensus price target of around $104.42 according to Bloomberg.com.
Accordingly, investors are looking forward to what lies ahead for this US-based airline as overall positive sentiment dominates currently pricing the share for approximately a hundred dollars ($100) apiece post-quarterly earnings announcement.
