Allegiant Travel Company (NASDAQ:ALGT)’s stock has reached a new 52-week high, soaring to $94.5 amidst a robust travel market rebound. With a market capitalization of $1.67 billion, the company has shown remarkable momentum, delivering an impressive 83.64% return over the past six months. InvestingPro analysis reveals five analysts have recently revised their earnings expectations upward for the upcoming period. This milestone reflects a significant recovery, with the stock demonstrating a 14.08% increase over the past year. Investors attribute this performance to the company’s strategic adjustments and a resurgence in domestic travel demand, which have collectively propelled Allegiant’s financials and investor confidence to new heights. The company operates with a debt-to-equity ratio of 1.75, while maintaining a current ratio of 0.75. For deeper insights into Allegiant’s financial health and additional ProTips, explore the comprehensive research available on InvestingPro.
In other recent news, Allegiant Travel Company has experienced significant updates in its financial outlook. TD Cowen reaffirmed its Hold rating on Allegiant shares and increased the price target to $70.00, following the company’s latest guidance, which indicated a quicker recovery than anticipated. Additionally, Goldman Sachs updated Allegiant’s December quarter earnings per share (EPS) estimate to $2.15, an increase from the previous estimate of $0.85.
UBS resumed coverage on Allegiant shares with a neutral rating, citing challenges from lower aircraft utilization and increased staffing costs due to delays in Boeing (NYSE:BA) MAX aircraft deliveries. The company anticipates an increase in Q4 earnings and operating margins, driven by recent booking trends and operational adjustments. Allegiant also expects a decrease in Q4 revenue per available seat mile (RASM) forecast to a decrease of 1.5%, an improvement from the previously projected 4.5% drop.
Recent developments include a decrease in passenger traffic and revenue passenger miles, largely due to the impact of hurricanes. Allegiant’s pilots, represented by the Teamsters union, voted in favor of a strike to negotiate better compensation and work conditions, potentially affecting pilot retention and aircraft utilization. These are recent developments for Allegiant Travel Company.
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