Bearish Options Activity on Alaska Air Group, Inc. After Worse Fundamentals

 Bearish Options Activity on Alaska Air Group, Inc. After Worse Fundamentals

In today’s session Alaska Air Group, Inc. (ALK) recorded an unusually high (1,234) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the October, 2016 put, expecting serious ALK decrease. With 1,234 contracts traded and 9314 open interest for the Oct, 16 contract, it seems this is a quite bearish bet. The option with symbol: ALK161021P00065000 closed last at: $0.65 or 48% down. About 230,878 shares traded hands. Alaska Air Group, Inc. (NYSE:ALK) has declined 12.70% since March 3, 2016 and is downtrending. It has underperformed by 21.05% the S&P500.

Analysts await Alaska Air Group, Inc. (NYSE:ALK) to report earnings on October, 27. They expect $2.01 earnings per share, down 6.94% or $0.15 from last year’s $2.16 per share. ALK’s profit will be $245.85M for 8.56 P/E if the $2.01 EPS becomes a reality. After $2.12 actual earnings per share reported by Alaska Air Group, Inc. for the previous quarter, Wall Street now forecasts -5.19% negative EPS growth.

Alaska Air Group, Inc. (NYSE:ALK) Ratings Coverage

Out of 10 analysts covering Alaska Air Group (NYSE:ALK), 4 rate it a “Buy”, 0 “Sell”, while 6 “Hold”. This means 40% are positive. $105 is the highest target while $73 is the lowest. The $87.70 average target is 27.40% above today’s ($68.84) stock price. Alaska Air Group has been the topic of 27 analyst reports since July 24, 2015 according to StockzIntelligence Inc. The stock has “Outperform” rating given by Cowen & Co on Friday, December 4. JP Morgan maintained Alaska Air Group, Inc. (NYSE:ALK) on Thursday, February 4 with “Underweight” rating. The stock of Alaska Air Group, Inc. (NYSE:ALK) has “Overweight” rating given on Wednesday, July 27 by JP Morgan. On Tuesday, June 14 the stock rating was downgraded by Raymond James to “Outperform”. The rating was downgraded by Credit Suisse to “Neutral” on Thursday, January 7. The stock of Alaska Air Group, Inc. (NYSE:ALK) has “Buy” rating given on Friday, January 22 by Deutsche Bank. On Thursday, July 23 the stock rating was maintained by Cowen & Co with “Outperform”. The stock of Alaska Air Group, Inc. (NYSE:ALK) earned “Hold” rating by Deutsche Bank on Friday, October 23. Cowen & Co maintained Alaska Air Group, Inc. (NYSE:ALK) on Tuesday, August 18 with “Outperform” rating. On Tuesday, December 22 the stock rating was downgraded by Stifel Nicolaus to “Hold”.

According to Zacks Investment Research, “Alaska Air Group, Inc. is a holding company and has two principal subsidiaries: Alaska Airlines, Inc. and Horizon Air Industries, Inc. Both subsidiaries operate as airlines. However, each subsidiary’s business plan, competition and economic risks differ substantially. Alaska is a major airline, operates an all jet fleet, and its average passenger trip length is 833 miles. Horizon is a regional airline, operates jet and turboprop aircraft, and its average passenger trip is 231 miles.”

Insitutional Activity: The institutional sentiment increased to 1.02 in Q2 2016. Its up 0.09, from 0.93 in 2016Q1. The ratio increased, as 67 funds sold all Alaska Air Group, Inc. shares owned while 157 reduced positions. 88 funds bought stakes while 141 increased positions. They now own 106.92 million shares or 7.17% less from 115.17 million shares in 2016Q1.
Kbc Grp Nv holds 0.01% or 12,521 shares in its portfolio. Millennium Mngmt Limited Liability Company has 1.24M shares for 0.17% of their US portfolio. Jolley Asset Limited Company has 10,115 shares for 0.47% of their US portfolio. Us Comml Bank De, a Minnesota-based fund reported 23,197 shares. Art accumulated 0.12% or 40,832 shares. Janus Cap Ltd Liability Com, a Colorado-based fund reported 599,963 shares. Cadence Mngmt Lc has 37,947 shares for 0.17% of their US portfolio. Nj State Employees Deferred Compensation Plan has 20,000 shares for 0.25% of their US portfolio. Moreover, Boston Family Office Ltd Liability Company has 0.06% invested in Alaska Air Group, Inc. (NYSE:ALK) for 7,450 shares. Fincl Bank Of New York Mellon has 1.35M shares for 0.02% of their US portfolio. Huntington National Bank reported 669 shares or 0% of all its holdings. Aviance Ltd Liability Co has invested 0.04% of its portfolio in Alaska Air Group, Inc. (NYSE:ALK). Sandy Spring Natl Bank reported 750 shares or 0.01% of all its holdings. First Tru Advsrs Limited Partnership last reported 0.03% of its portfolio in the stock. Royal Retail Bank Of Canada has 306,009 shares for 0.01% of their US portfolio.

Insider Transactions: Since April 19, 2016, the stock had 0 insider buys, and 14 sales for $5.30 million net activity. 2,000 shares with value of $133,436 were sold by TILDEN BRADLEY D on Thursday, September 22. $1.05 million worth of Alaska Air Group, Inc. (NYSE:ALK) shares were sold by HARRISON ANDREW R. YOUNG TAMARA S sold $134,736 worth of stock or 2,000 shares. 1,372 shares were sold by MADSEN DENNIS F, worth $90,528. SPRAGUE JOSEPH A also sold $466,690 worth of Alaska Air Group, Inc. (NYSE:ALK) shares. ELIASEN MARK G also sold $144,320 worth of Alaska Air Group, Inc. (NYSE:ALK) shares. On Monday, May 23 PEDERSEN BRANDON sold $701,174 worth of the stock or 9,943 shares.

Alaska Air Group, Inc. is the holding firm of Alaska Airlines and Horizon Air (Horizon). The company has a market cap of $8.42 billion. The Firm operates through three divisions: Alaska Mainline, Alaska Regional and Horizon. It has a 9.55 P/E ratio. The Company’s Alaska Mainline segment operates the Boeing 737 part of Alaska’s business.

ALK Company Profile

Alaska Air Group, Inc., incorporated on March 15, 1985, is the holding firm of Alaska Airlines (Alaska) and Horizon Air (Horizon). The Firm operates through three divisions: Alaska Mainline, Alaska Regional and Horizon. Alaska operates a fleet of passenger jets (mainline) and contracts with Horizon, SkyWest Airlines, Inc. (SkyWest) and Peninsula Airways, Inc. (PenAir) for regional capacity. The Firm serves approximately 100 cities through a network in Alaska, the Lower 48, Hawaii, Canada, Mexico and Costa Rica. The Alaska Airlines Mileage Plan program provides a suite of frequent flier benefits.

More notable recent Alaska Air Group, Inc. (NYSE:ALK) news were published by: Prnewswire.com which released: “Alaska Air Group and Virgin America Agree to Extend Regulatory Review of …” on September 26, 2016, also Bloomberg.com with their article: “Alaska Air’s Virgin Bid Seen Facing Concerns Near Deadline” published on September 22, 2016, Streetinsider.com published: “Alaska Air Group (ALK) Loads Factor Rose 2.5 Points in Sept. 2016” on October 04, 2016. More interesting news about Alaska Air Group, Inc. (NYSE:ALK) were released by: Wsj.com and their article: “Alaska Air Agrees Not to Close Virgin America Merger Before Oct. 17” published on September 26, 2016 as well as Seekingalpha.com‘s news article titled: “Alaska Air: Deal Delays Shall Pass” with publication date: September 26, 2016.

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