Commodity Channel Index
|Bid||33.00 x 1000|
|Ask||33.24 x 800|
|Day's Range||33.36 - 34.20|
|52 Week Range||20.02 - 72.22|
|Beta (5Y Monthly)||1.49|
|PE Ratio (TTM)||7.85|
|Earnings Date||Jul 23, 2020 - Jul 27, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Feb 14, 2020|
|1y Target Est||44.75|
There’s a big debate now about whether Warren Buffett has “lost his touch.” While Buffett’s Berkshire Hathaway (BRK)(BRK) booked substantial losses dumping airlines stocks in the late first-quarter weakness in the sector, insiders at close to half a dozen airlines bought lots of their stock — including the airlines Berkshire sold. In a direct challenge to the Oracle of Omaha, insiders racked up the kind of sector-wide buying I look for to support a bullish industry call in my stock newsletter Brush Up on Stocks.
Confluence Investment Management recently released its Q1 2020 Investor Letter, a copy of which you can download below. The All Cap Value Fund posted a return of -22.4% for the quarter (net of fees), outperforming its benchmark, the Russell 3000 Value Index which returned -27.3% in the same quarter. You should check out Confluence Investment […]
United will use sneeze guards at check-in counters and hand out wipes; JetBlue will block middle seats on Airbus planes.
The U.S. Transportation Department said late Friday it had granted tentative approval to 15 airlines to temporarily halt service to 75 U.S. airports because of the coronavirus pandemic. Airlines must maintain minimum service levels in order to receive government assistance but many have petitioned to stop service to airports with low passenger demand. Both United Airlines and Delta Air Lines won tentative approval to halt flights to 11 airports, while JetBlue Airways Corp, Alaska Airlines and Frontier Airlines were approved to stop flights to five airports each.
Is the ability to time the markets more of a data-driven science or a 'gut - feeling' art?
Coronavirus woes weigh on ZTO Express' (ZTO) Q1 results despite 4.9% rise in parcel volumes.
Now that we’re beginning – just beginning – to emerge from the anti-coronavirus shutdowns, and the economy is starting to open up, one obvious question is begging for an answer. The restart, of society of the economy, will depend on the success we encounter in lifting trade and travel restriction. How soon will that happen, and will it happen soon enough?For the airline industry, at least one answer may be obvious: the restart cannot come soon enough. Airlines have famously thin margins, and with long-distance and international travel simply stopped and air traffic down by 90%, they have been hemorrhaging cash. While the larger airlines may have the resources to survive, there is no doubt that at least some smaller airlines will go under.Writing from Credit Suisse, airline industry analyst Jose Caiado sees some hope. Low share prices now make an attractive point of entry, and Caiado notes that, as society reopens, air travel will inevitably resume its essential function. There is simply no other efficient way to handle rapid long-distance travel. The key for investors will be finding those airlines best positioned to both to weather the downturn and quickly resume operations. “We believe industry has adequate liquidity to bridge through to an eventual demand recovery, which we expect towards the end of 2020. However, balance sheets are now heavily burdened with incremental leverage, and debt reduction will become industry’s primary strategic objective as it emerges from the crisis,” Caiado noted.On a practical note, for investors, Caiado points out three airlines that are solid bets to survive the corona crisis and make gains in the restart. Using TipRanks’ Stock Comparison tool, we lined up the three alongside each other to get the lowdown on what the near-term holds for these airline players.Delta Airlines (DAL)Delta certainly meets the size test to survive the coronavirus. By fleet size, scheduled passenger numbers, and revenue per passenger-miles flown – all key industry metrics – Delta is the world’s second largest airline. The company boasts a market cap of $12.24 billion, and brought in $47 billion in revenue in 2019. With nine US hubs, and status as a founding member of the international SkyTeam alliance, Delta holds a secure position in the industry.The impact of COVID-19 is clear from DAL’s earnings. The company reported $1.70 per share in Q4, beating estimates by 21%, but that switched to a 51-cent per share loss in Q1. On a bright note, the Q1 loss was less deep than had been forecast, coming in 29% above expectations. Stock performance has not matched earnings, as DAL shares are still down 67% from February levels.In March, Delta made two moves to improve the company’s liquidity situation, which Jose Caiado noted as priority for airlines generally. On March 12, the company paid out a regular quarterly dividend of 40.25 cents per share – and on March 20, the company announced that it was drawing $3 billion from its existing revolving credit facility and at the same time a new credit agreement for $2.6 billion. Accompanying these credit moves, DAL also suspended its capital return policy, halting stock buybacks and dividend payments going forward.Delta’s income structure pre-positions the airline to recover once air travel begins to pick up. Caiado notes, “We believe Delta is among the best-positioned airlines to quickly pay down the incremental debt it raised this year and quickly restore its financial strength, including its investment grade ratings… we do expect to see a demand recovery in the domestic market before international, and while DAL is a global carrier with international exposure, it has outsized domestic revenue exposure (72%) relative to its network peers, which is also where it earns its highest margins.”Caiado describes DAL as a Top Pick, rating the stock a Buy with a price target of $42. This target implies a robust upside of 96% in the coming 12 months. (To watch Caiado’s track record, click here)Overall, Wall Street agrees that DAL is a buying proposition. The stock’s Moderate Buy analyst consensus rating is based on 9 Buys and 5 Holds set in the past two months. Share price has fallen to an affordable $21.41, while the $37.91 average price target suggests it has room for 77% upside growth. (See Delta stock analysis on TipRanks)United Airlines Holdings (UAL)And now we move on to the largest of the airlines, United. This holding company controls subsidiary companies around the world, and founded the Star Alliance, a cooperative grouping of airlines. With $43.26 billion in 2019 revenues, and the highest revenue per passenger-mile in the industry, UAL is a giant by any standard.Like Delta, United felt a serious hurt moving from Q4 to Q1, due to the effects of the COVID-19 pandemic. Q4 had seen EPS of $2.67, just over the forecast, while Q1 saw UAL report a $2.57 per share net loss. As was the case with Delta, United’s Q1 loss was not as deep as expected. Looking toward Q2, however, UAL is expected to post a loss of $9.83 per share. Being the world’s largest airline brings advantages – but it also brings disadvantages. UAL was at the top, and so had farther to fall.Earlier this month, United Airlines, the chief subsidiary of UAL, announced its intention to make a private offering of $2.25 billion senior secured notes. This capital expansion move is intended to pay off the $2 billion in outstanding principal on a term loan entered into this past March as a move to weather the coronavirus storm. The remaining funds raised by the senior secured notes will be used for general corporate purposes. UAL will guarantee this note issue.Analyst Caiado has noted two important points about UAL, both in line with his general views of the airline industry. First, he points out that “United has proactively led the way with respect to many Covid-19 response actions, including being the first airline to implement steep capacity cuts and suspend share repurchases, and the first to raise additional liquidity, including equity capital.”Second, and more importantly, Caiado shows that UAL is the airline best-positioned to modernize its fleet in the wake of the coronavirus epidemic. He writes, “Assuming the 737 MAX is ungrounded later this year, UAL will take delivery of 16 aircraft this year (already built), and it will take delivery of an additional 24 MAXs in 2021. UAL also expects to take delivery of eight more 787-9 aircraft this year as well as eight 787-10 aircraft next year.”These new aircraft will not represent a burden on the company’s liquidity position: “UAL will not take any new aircraft that is not already fully financed and therefore these deliveries are not a drain on cash.” Looking further ahead, UAL is in talks with Boeing regarding another 131 MAX aircraft currently on order but not yet under construction.Caiado puts a $41 price target on UAL shares, to back up his Buy rating. His price target implies a one-year upside of 74%. (To watch Caiado’s track record, click here)Wall Street is more bullish here than Caiado is, as the average price target on UAL is $48.92, representing a hefty 108% upside potential. The Moderate Buy consensus rating is based on 12 reviews, including 6 Buys and 7 Holds. (See United stock analysis on TipRanks)Alaska Air Group (ALK)Last on our list for today is Alaska Air. With a market cap of $3.14 billion and $8.8 billion in revenue last year, this company occupies a ‘second tier’ in size within the industry. It’s not one of the dominating giants, but it is a major regional player, with a solid reputation for quality service in Alaska and along the West Coast of North America.Like most of its industry peers, ALK saw earnings turn sour in 2020. The $1.46 reported in Q4 2019 was 3.5% above forecasts, reflecting the generally positive trends in the industry – but Q1 came in with a net loss of 82 cents per share. As with the giants above, this loss was not as deep as expected; it beat the forecast by 35%. Federal bailout actions under the CARES Act and company efforts to cut cost and improve access to credit both worked to ameliorate the COVID-19 impact.While Alaska Air was forced to furlough employees, the company also took measures at the upper end of the pyramid to cut costs. The company has suspended its dividend (which had been a generous 5.85%), and has drawn on $825 million worth of credit. Top management has taken deep pay cuts across the board, ranging from 20% to 100%. While cosmetic, these pay cuts are an important PR step.Jose Caiado, in his ALK review for Credit Suisse, sees Alaska Air’s flexible position as its greatest advantage writing, “…ALK will be able to pay down a substantial amount of the debt it has borrowed to manage through the current crisis and leverage metrics can return to pre-crisis levels. We appreciate ALK’s great flexibility with respect to its fleet & aircraft order book. ALK has several dozen Airbus aircraft slated for lease returns, and leverage with Boeing with respect to the 737 MAX given the contractual delay.”Overall, Caiado gives ALK a Buy rating, and his $51 price target indicates a high upside potential of 82%. (To watch Caiado’s track record, click here)The analyst consensus rating on Alaska Air is another Moderate Buy, this one based on 7 Buy ratings and 5 Holds. The stock is selling for $27.94 right now, and the average price target, at $42.42, suggests a bullish 52% upside potential for the year ahead. (See Alaska Air’s stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Airlines have been hit hard by the COVID-19 pandemic, sending stocks crashing down and causing Warren Buffett to run for the emergency exits. During a May 12 television interview, CEO David Calhoun said a "major U.S. carrier" will "most likely" go out of business this year, predicting an extended decline in travel.
More than 200 health care workers at Swedish Medical Center – Ballard will be among the first to enjoy the season's first catch of prized Copper River salmon. Alaska Air Cargo this morning delivered the first catch of fresh, sustainable Copper River salmon to Seattle, which will be delivered to grocery stores across the country.
Market forces rained on the parade of Alaska Air Group, Inc. (NYSE:ALK) shareholders today, when the analysts...
Disney and Warner Bros. are licensing their characters for face masks. Old Navy and Forever 21 are crafting face coverings, too.
KlaymanToskes ("KT"), www.klaymantoskes.com, announced today that it is investigating damages sustained by current and former employees and investors of Alaska Air (NYSE:ALK) who held large, unhedged concentrated positions in Alaska Air stock and/or received margin calls resulting in the forced sale of stock. The recent losses were the result of unsuitable advice during the Coronavirus ("COVID-19") pandemic. The investigation focuses on full-service brokerage firms’ negligence and failure to supervise the management of concentrated, leveraged positions in Alaska Air stock.
Carriers like United Airlines (UAL) and American Airlines (AAL) incur a loss in Q1 due to the coronavirus-induced dented passenger revenues.
Kirby's (KEX) Q1 results reflect a 36.1% drop in distribution and services revenues. Impressive performance of the marine transportation division partly offsets the adversity.
At this time, I'd like to welcome everyone to the Alaska Air Group First Quarter Earnings Release Conference Call. This morning, Alaska Air Group reported a first quarter GAAP net loss of $232 million. Excluding one-time costs and mark-to-market adjustments, Air Group reported an adjusted net loss of $102 million.
Investors rewarded Alaska Air Group, Inc. (NYSE: ALK) for reporting first-quarter losses and cash burn projections that beat expectations, with the stock up 1.15% to $29.10 per share at Tuesday's market close.The parent company of Alaska Airlines and Horizon Airlines said its first-quarter adjusted net loss was $0.82 per share, or $102 million, ahead of Wall Street's consensus of a $1.14 loss per share. Total revenue fell 13% to $1.6 billion compared to analyst estimates for $1.7 billion compared to the same period last year.Cargo revenue fell 8% to $46 million.View more earnings on ALKThe implosion of travel demand due to the coronavirus forced airlines to implement severe austerity programs. Alaska's measures include reducing passenger schedules by at least 80% through May and offering voluntary, unpaid leave, which more than 5,000 employees accepted. The deferral of predelivery aircraft payments and nonaircraft capital projects has saved more than $500 million in capital expenditures this year, and Alaska is lowering discretionary costs by negotiating payment extensions or reductions with lessors, vendors and airports.Alaska said it reduced its cash burn from $400 million per month in March to $260 million in April, and hopes to t it to $200 million per month in June. The monthly negative cash flow translates to about $8.6 million per day in April compared to major domestic carriers like American Airlines ($70 million per day) and United Airlines ($50 million per day). The Seattle-based carrier has $2.9 billion of cash and cash-equivalents after accepting a $992 million payroll protection grant from the U.S. government and borrowing $875 million from private sources. It has also applied to the government for the option of taking a $1.1 billion loan. CEO Brad Tilden thanked front-line workers for maintaining ongoing services at high levels and the leadership team for giving "us the best chance possible to navigate through this storm and capitalize on opportunities we may see on the other side."See more from Benzinga * US Airlines Accept Government's Workforce Aid * Alaska, American Cut More Capacity As Airlines Try To Preserve Cash * Alaska Airlines Answers Call To action For Face Masks(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Stocks gave back a chunk of their gains in the last hour of trading, but investors nonetheless continued to push stocks higher in the face of grim economic data and lackluster earnings reports on Tuesday.
Alaska Air reported a loss in the face of the coronavirus. March "cancellations overwhelmed new bookings," the carrier said.