Allegiant Travel Company (NASDAQ:ALGT)’s stock has reached a new 52-week high, soaring to $101.15, marking a significant milestone for the airline. With a market capitalization of $1.79 billion, the stock has demonstrated remarkable momentum, posting a stunning 110% gain over the past six months. According to InvestingPro analysis, technical indicators suggest the stock is currently in overbought territory. This peak reflects a robust 30% increase over the past year, showcasing the company’s strong performance and investor confidence. The ascent to this price level underscores Allegiant’s resilience and adaptability in a dynamic travel industry, as it continues to navigate the challenges and opportunities that have emerged in the post-pandemic market. InvestingPro subscribers have access to 13 additional key insights about Allegiant, including detailed analyst forecasts and comprehensive financial health metrics that could help inform investment decisions.
In other recent news, Allegiant Travel Company has seen significant updates in its financial outlook. Notably, the company has revised its fourth quarter total revenue per available seat mile (TRASM) to a decrease of 1.5%, improved from the previously projected 4.5% drop. This comes after Goldman Sachs updated Allegiant’s December quarter earnings per share (EPS) estimate to $2.15, an increase from the previous estimate of $0.85, due to stronger performance by the airline.
TD Cowen has also reaffirmed its Hold rating on Allegiant and increased the price target to $70.00, following the company’s latest guidance. The company’s cost per available seat mile excluding fuel (CASMex) has also improved, largely due to a $15 million gain from the sale of CFM engines.
However, Allegiant’s pilots, represented by the Teamsters union, voted in favor of a strike to negotiate better compensation and work conditions. This coincides with a decrease in passenger traffic and revenue passenger miles, largely due to the impact of hurricanes.
UBS has resumed coverage on Allegiant shares with a neutral rating, citing pressures from lower aircraft utilization and increased staffing costs due to delays in Boeing (NYSE:BA) MAX aircraft deliveries. These factors, along with losses from its Sunseeker resort, are expected to improve in the coming year. These are among the recent developments for Allegiant.
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