SEATTLE—Benito Minicucci, CEO and President of Alaska Air Group, Inc. (NYSE:ALK), recently sold 30,000 shares of the company's common stock. The transaction took place on December 12, 2024, at a weighted average price of $65.0705 per share, amounting to a total of approximately $1.95 million. The sale comes as Alaska Air Group, with a market capitalization of $7.9 billion, has seen its stock surge over 64% in the past year. According to InvestingPro analysis, the stock's RSI indicates overbought territory.
The shares were sold in multiple transactions at prices ranging from $64.75 to $65.41, according to the filing. Following this sale, Minicucci retains direct ownership of 111,244 shares in Alaska Air Group. The transaction occurred near the stock's 52-week high of $65.62, with InvestingPro data showing significant momentum across multiple timeframes, including a 16.7% gain in the past week alone. For deeper insights into ALK's valuation and 12+ additional ProTips, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Alaska Air Group Inc. has been making significant strides in its financial and operational strategies. The airline anticipates an additional $1 billion in pre-tax profit and an earnings per share (EPS) exceeding $10 by 2027, following its merger. TD Cowen and Melius Research have both maintained a positive outlook on the airline, with TD Cowen increasing Alaska Air's price target to $78 and naming it their second Top Pick.
Alaska Air's strategy is focused on expanding its network, enhancing its product offerings, growing its loyalty program, and boosting its cargo operations. The company also aims to reduce net leverage to 1.5 times, supporting a $1 billion share repurchase program. These initiatives are part of the recent developments in the company's growth plan.
The company's ambitious growth strategy, Alaska Accelerate, aims to drive double-digit profit margins between 11-13% and increase EPS to a minimum of $10 by 2027. The strategy includes blending Alaska and Hawaiian's route networks, optimizing connections, and increasing relevance for guests. The combined airline now operates over 1,400 daily flights to more than 140 cities and offers access to over 1,200 destinations globally with partners and through the oneworld Alliance.
Analyst firms such as TD Cowen, Melius Research, UBS, and Goldman Sachs (NYSE:GS) have all issued Buy ratings for Alaska Air. These ratings reflect the analysts' confidence in the company's financial health and growth prospects.
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