Board Member Of Alaska Air Gr Makes $139K Buy

JAMES BEER, Board Member at Alaska Air Gr ALK, disclosed an insider purchase on May 13, based on a new SEC filing.

What Happened: In a Form 4 filing on Monday with the U.S. Securities and Exchange Commission, it was disclosed that BEER bought 3,191 shares of Alaska Air Gr, amounting to a total of $139,957.

As of Tuesday morning, Alaska Air Gr shares are down by 0.35%, currently priced at $43.72.

Get to Know Alaska Air Gr Better

Alaska Air Group Inc operates two airlines, Alaska and Horizon in three operating segments. The Mainline segment includes scheduled air transportation on Alaska's Boeing and Airbus jet aircraft for passengers and cargo throughout the U.S., and in parts of Mexico, and Costa Rica. The Regional segment includes Horizon's and other third-party carriers' scheduled air transportation for passengers across a shorter distance network within the U.S. and Canada under capacity purchase agreements (CPA). The Horizon segment includes the capacity sold to Alaska under a CPA. It earns revenues from Passenger tickets, including ticket breakage and net of taxes and fees, Passenger ancillary and Mileage Plan passenger revenue.

Understanding the Numbers: Alaska Air Gr's Finances

Revenue Growth: Alaska Air Gr's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 1.64%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Holistic Profitability Examination:

• Gross Margin: With a low gross margin of 6.72%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): With an EPS below industry norms, Alaska Air Gr exhibits below-average bottom-line performance with a current EPS of -1.05.

Debt Management: Alaska Air Gr's debt-to-equity ratio is below the industry average at 0.96, reflecting a lower dependency on debt financing and a more conservative financial approach.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: Alaska Air Gr's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 23.21.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.54, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Alaska Air Gr's EV/EBITDA ratio of 7.74 exceeds industry averages, indicating a premium valuation in the market

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Why Pay Attention to Insider Transactions

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Exploring Key Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Alaska Air Gr's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.