The Case for and Against Alaska Air Group, Inc. (ALK)

Alaska Air Group, Inc. (ALK) is an interesting player in the Services space, with a focus on Regional Airlines. The stock has been active on the tape, currently trading at $65.21, up from yesterday’s close by 1.97%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Alaska Air Group, Inc. (ALK) currently trades with a market capitalization of $7.58 Billion. That value represents a market adjusting for revenues that have been growing by 28.74 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $564 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.04 on a per share basis this quarter. Perhaps, that suggests something about why 0.55% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, Alaska Air Group, Inc. recorded a 52-week high of $95.75. It is now trading 30.54% off that level. The stock is trading $63.74 its 50-day moving average by -1.47%. The stock carved out a 52-week low down at $57.60.

In recent action, Alaska Air Group, Inc. (ALK) has made a move of -1.95% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 13.41, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 5.82% with $116.29 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of ALK.

Previous articleDrilling Down Into American Express Company (AXP)
Next articleJust the Facts on Archer-Daniels-Midland Company (ADM)