Allegiant Travel Company (ALGT) AI Stock Analysis

• Market Cap: $892.11M
• Dividend Yield: 1.25%
• Average Volume (3M): 441.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.38
• Revenue Growth: 1.54%
• EPS Growth: -466.46%
• Country: US
• Employees: 6,057
• Sector: Industrials
• Sector Strength: 84
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 1.23
• Shares Outstanding: 18,254,744
• 10 Day Avg. Volume: 516,301
• 30 Day Avg. Volume: 441,833
• PEG Ratio: 0.02
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 43.87
• Enterprise Value/Market Cap: 2.36
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 3.11
• Enterprise Value/Ebitda: 18.18
• 1Y Price Target: $60.33
• Price Target Upside: 23.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 56 Neutral
• Price Target: $52.00 ▲(6.40% Upside)

Allegiant Travel Company's overall score reflects a challenging financial environment with operational and profitability concerns. However, the company's strategic initiatives, including securing additional credit and appointing a new COO, show adaptability and potential for recovery. Technical indicators and valuation metrics suggest caution, while the earnings call provides a more optimistic view of operational progress.

Positive Factors

Financial Performance

ALGT reported adjusted EPS well above expectations, driven by better than expected performance.

Fleet and Product Strategy

Management is positive on benefits from increasing the number of MAX aircraft in the fleet and growing premium seat mix to drive better ancillary performance.

Operational Focus

With the sale of the Sunseeker Resort expected to close, ALGT's focus shifts back to its core airline business, simplifying its operations.

Negative Factors

Earnings Forecast

Forecasts for ALGT earnings are below consensus, suggesting weaker performance expectations.

Market Reaction

ALGT stock dropped 15% largely driven by their surprising announcement to grow capacity significantly by year end, which flew in the face of the industry trend to prioritize RASM over growth-driven margin expansion.

Sale Valuation

The announced sale of Sunseeker is below the estimated value, leading to shares underperforming the group.

Allegiant Travel Company Business Overview & Revenue Model

Company Description

Allegiant Travel Company (ALGT) is a leisure-focused travel company that operates in the United States. Its core business includes scheduled and charter air transportation and it is known for offering low-cost flights primarily to smaller, underserved cities. Allegiant also provides travel-related services, such as hotel room bookings, rental car reservations, and other ancillary services to enhance the travel experience of its customers.

How the Company Makes Money

Allegiant Travel Company makes money primarily through passenger ticket sales for its air transportation services, which constitute the bulk of its revenue. Additionally, Allegiant generates significant income from ancillary services, including baggage fees, seat selection fees, and onboard purchases. The company also earns revenue through commissions on hotel bookings, rental car reservations, and the sale of travel packages that combine flights with other travel services. Allegiant's strategy of serving underserved markets with limited competition allows it to maintain a solid pricing power, contributing to its profit margins. Partnerships with hotels, car rental agencies, and other travel-related businesses further bolster its revenue through commission-based arrangements.

Allegiant Travel Company Financial Statement Overview

Summary

Allegiant Travel Company faces operational and profitability challenges. The income statement shows losses, the balance sheet reveals high leverage, and cash flow improvements suggest some resilience. Continued focus on improving profitability and managing leverage will be crucial.

Income Statement

Allegiant Travel Company shows mixed performance in its income statement. The TTM (Trailing-Twelve-Months) gross profit margin is 26.5%, reflecting a reasonable level of profitability. However, the net profit margin is negative, indicating losses, which is a concern. Revenue growth is modest, at approximately 1.7% from 2024 to 2025. EBIT and EBITDA margins are weak due to negative EBIT, pointing to operational challenges.

Balance Sheet

The balance sheet of Allegiant Travel Company presents a moderately stable financial position. The debt-to-equity ratio is relatively high at 1.88, suggesting significant leverage. Return on Equity (ROE) is negative due to net losses, which is a downside. However, the equity ratio is 24.7%, showing some level of asset backing by equity.

Cash Flow

The cash flow statement indicates some positive aspects. Free cash flow has grown significantly, showing financial improvement in cash generation. The operating cash flow to net income ratio is positive at 1.75, demonstrating a strong ability to generate cash from operations despite net losses. However, the free cash flow to net income ratio is low, reflecting the challenges in maintaining cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.56B	2.51B	2.51B	2.30B	1.71B	990.07M
Gross Profit	677.12M	1.57B	664.37M	340.47M	231.54M	-4.34M
EBITDA	115.98M	60.86M	490.24M	305.57M	446.06M	-128.37M
Net Income	-207.22M	-240.24M	117.60M	2.49M	151.85M	-184.09M
Balance Sheet
Total Assets	4.50B	4.43B	4.86B	4.51B	3.99B	685.30M
Cash, Cash Equivalents and Short-Term Investments	878.60M	781.13M	814.67M	955.10M	1.18B	685.30M
Total Debt	2.09B	2.15B	2.36B	2.21B	1.88B	1.78B
Total Liabilities	3.39B	3.34B	3.53B	3.29B	2.77B	2.56B
Stockholders Equity	1.11B	1.09B	1.33B	1.22B	1.22B	699.40M
Cash Flow
Free Cash Flow	119.29M	38.30M	-447.39M	-131.64M	232.66M	-45.70M
Operating Cash Flow	362.06M	338.46M	423.09M	303.05M	488.20M	234.50M
Investing Cash Flow	-22.74M	5.58M	-721.88M	-491.42M	-593.28M	-365.69M
Financing Cash Flow	-246.80M	-201.30M	212.92M	33.12M	285.47M	164.60M

Allegiant Travel Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 48.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALGT, the sentiment is Negative. The current price of 48.87 is below the 20-day moving average (MA) of 51.90, below the 50-day MA of 53.83, and below the 200-day MA of 66.92, indicating a bearish trend. The MACD of -1.39 indicates Positive momentum. The RSI at 40.83 is Neutral, neither overbought nor oversold. The STOCH value of 25.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALGT.

Allegiant Travel Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNCY	68 Neutral	$549.16M	9.92	10.15%	―	3.76%	17.44%
VLRS	65 Neutral	$652.64M	12.09	-12.00%	―	-7.05%	-128.03%
Sector *	64 Neutral	$10.63B	16.03	5.49%	2.12%	2.74%	-23.62%
ALGT	56 Neutral	$892.11M	―	-24.02%	1.25%	1.54%	-466.46%
JBLU	51 Neutral	$1.59B	―	-15.12%	―	-1.90%	61.06%
UP	49 Neutral	$957.46M	―	-2416.94%	―	-29.68%	95.14%
ULCC	45 Neutral	$784.65M	13.43	-6.63%	―	4.60%	49.81%

Allegiant Travel Company Corporate Events

Allegiant Travel Reports Q2 2025 Financial Results

Allegiant Travel Company reported its second quarter 2025 financial results, highlighting a GAAP diluted loss per share of $(3.62) and adjusted earnings per share of $1.23. Despite the challenging demand environment, the company achieved a record number of flights and a 99.9% controllable completion factor, which contributed to its operational success. Allegiant’s commercial initiatives and digital transformation efforts are beginning to yield positive outcomes, with improvements in ancillary revenue and cost reductions. The company remains optimistic about strengthening domestic demand in the latter half of the year and plans to continue focusing on core strengths and cost improvements, including the sale of its Sunseeker Resort.

The most recent analyst rating on (ALGT) stock is a Hold with a $87.00 price target. To see the full list of analyst forecasts on Allegiant Travel Company stock, see the ALGT Stock Forecast page.

Allegiant Travel Sells Sunseeker Resort to Blackstone

On July 3, 2025, Allegiant Travel Company announced an agreement to sell its Sunseeker Resort Charlotte Harbor, Aileron Golf Course, and related properties in Southwest Florida to Blackstone Real Estate Group for $200 million, with the transaction expected to close in September 2025. Additionally, the company borrowed $158.6 million through credit facilities secured by Boeing 737-MAX aircraft to finance aircraft deliveries and manage debt, with $151 million in loan commitments still available.

The most recent analyst rating on (ALGT) stock is a Hold with a $87.00 price target. To see the full list of analyst forecasts on Allegiant Travel Company stock, see the ALGT Stock Forecast page.

Allegiant Travel Confirms Board Election and Key Approvals

On June 26, 2025, Allegiant Travel Company held its Annual Meeting of Stockholders where several key proposals were voted on. The election of an eight-member Board of Directors was confirmed, with Maurice J. Gallagher, Jr. and Gregory Anderson receiving the highest votes. Additionally, the stockholders approved the executive compensation and an amendment to the Company’s 2022 Long-term Incentive Plan. The appointment of KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was also ratified.

The most recent analyst rating on (ALGT) stock is a Hold with a $87.00 price target. To see the full list of analyst forecasts on Allegiant Travel Company stock, see the ALGT Stock Forecast page.

Allegiant Secures $144 Million Credit Facility

On June 10, 2025, Allegiant Travel Company secured a credit facility allowing it to borrow up to $144 million, backed by Boeing 737 MAX aircraft. The funds will be used for aircraft purchases, debt repayment, and general corporate purposes, enhancing the company’s financial flexibility.

The most recent analyst rating on (ALGT) stock is a Hold with a $87.00 price target. To see the full list of analyst forecasts on Allegiant Travel Company stock, see the ALGT Stock Forecast page.

Allegiant Travel Appoints Tyler Hollingsworth as COO

Allegiant Travel Company announced the appointment of Tyler Hollingsworth as the chief operating officer, effective May 1, 2025, following his interim role since March 2025. Hollingsworth has been with the company since 2010, holding various leadership roles in flight operations and safety. The company also reported strong financial results for the first quarter of 2025, with a notable increase in operating margin and earnings per share despite economic uncertainties impacting the airline industry. Allegiant has adjusted its capacity growth plans to maintain profitability amid volatile demand, demonstrating resilience in challenging market conditions.