Morgan Sandra Douglass, a director at Allegiant Travel Co (NASDAQ:ALGT), recently sold 350 shares of the company's common stock. The shares were sold at a price of $80.77 each, resulting in a total transaction value of $28,269. Following this sale, Morgan retains ownership of 11,650 shares in the company. The transaction was conducted as part of a pre-arranged 10b5-1 trading plan.
In other recent news, Allegiant Travel Company (NASDAQ:ALGT) reported a slight dip in third-quarter revenue to $562.2 million, down from $565.4 million the previous year. Despite this, the company managed to report a positive operating income for Q3 2024, even amidst significant disruptions caused by Hurricanes Helene and Milton. Allegiant anticipates a Q4 airline operating margin of around 7%, with expectations of market recovery by Q1 2025.
UBS resumed coverage on Allegiant shares, citing pressure from lower aircraft utilization and increased staffing costs due to delays in Boeing (NYSE:BA) MAX aircraft deliveries, and losses from its Sunseeker resort. However, these factors are expected to improve in the coming year, and UBS forecasts an earnings per share (EPS) increase to $5.48 in 2025 and $8.35 in 2026.
Goldman Sachs also resumed coverage on Allegiant, predicting significant profitability improvement by 2025, based on expected pilot staffing enhancements and reduced financial burden from the Sunseeker hotel business. Despite these positive outlooks, both UBS and Goldman Sachs issued a neutral rating on Allegiant shares.
In a recent development, Allegiant's pilots, represented by the Teamsters union, voted in favor of a strike to negotiate better compensation and work conditions. This could potentially affect pilot retention and the anticipated improvements in aircraft utilization. Despite these challenges, Allegiant's loyalty programs and ancillary revenue initiatives saw a 20% increase, indicating resilience amidst these recent developments.
InvestingPro Insights
While Morgan Sandra Douglass's recent sale of Allegiant Travel Co (NASDAQ:ALGT) shares may raise eyebrows, it's essential to consider the broader financial picture of the company. According to InvestingPro data, Allegiant's market capitalization stands at $1.44 billion, reflecting its position in the airline industry.
InvestingPro Tips highlight that Allegiant has seen a significant return over the last week, with a 1-week price total return of 11.06%. This short-term gain is part of a larger trend, as the stock has shown strong returns over the last month (29.64%) and three months (87.42%). These figures suggest that despite the director's sale, the market maintains a positive outlook on Allegiant's prospects.
However, it's worth noting that Allegiant operates with a significant debt burden, which could impact its financial flexibility. The company's Price to Book ratio of 1.11 indicates that the stock is trading slightly above its book value, potentially offering value to investors at current levels.
Interestingly, while the company wasn't profitable over the last twelve months, analysts predict that Allegiant will be profitable this year. This optimism is reflected in the fact that 6 analysts have revised their earnings upwards for the upcoming period, as noted in another InvestingPro Tip.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips on Allegiant Travel Co, providing a deeper understanding of the company's financial health and market position.
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