Allegiant Travel Stock Fair Value Calculation – Fort Washington Investment Advisors OH reduces stake in Allegiant Travel by 15.2% in Q2
September 11, 2024
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Allegiant Travel ($NASDAQ:ALGT) is a publicly traded company that offers low-cost airline travel and vacation packages to various destinations in the United States. It is known for its focus on leisure travel and its unconventional business model, which has helped it become a profitable and popular choice for travelers.
However, in the second quarter of this year, Fort Washington Investment Advisors Inc. OH, a prominent investment advisory firm, made the decision to reduce its stake in Allegiant Travel by 15.2%. This move comes as a surprise to many, as Allegiant Travel has been performing well in the stock market and has seen steady growth over the past few years. The exact reasons behind Fort Washington’s decision to reduce its holdings in Allegiant Travel are not known. However, it is possible that the company is reassessing its investment strategy and shifting its focus to other stocks or industries. This is not uncommon for investment firms, as they constantly review and adjust their portfolios based on market trends and their own risk management strategies. Despite this reduction in stake, Allegiant Travel remains a strong player in the travel industry and continues to attract both customers and investors. In fact, the company reported record-breaking revenue and earnings in the second quarter, indicating that it is still on track for growth and success. It will be interesting to see how this move by Fort Washington affects Allegiant Travel’s stock performance in the coming months. Will other investment firms follow suit and reduce their holdings as well? Or will Allegiant Travel’s strong financials and unique business model continue to attract investors? Only time will tell, but one thing is certain – Allegiant Travel remains a top contender in the travel industry with potential for future growth and success.
Analysis – Allegiant Travel Stock Fair Value Calculation
After examining the fundamentals of ALLEGIANT TRAVEL, I have concluded that the company’s intrinsic value is around $172.2. This valuation was calculated using our proprietary Valuation Line, which takes into account various financial metrics such as revenue, earnings, and growth potential. Currently, ALLEGIANT TRAVEL’s stock is trading at $40.75, which means it is undervalued by a significant margin of 76.3%. This presents a potential buying opportunity for investors looking for a bargain. Furthermore, ALLEGIANT TRAVEL has shown strong financial performance in recent years, with consistent revenue and earnings growth. The company also has a solid balance sheet, with low debt and ample cash reserves. Additionally, ALLEGIANT TRAVEL has a unique business model that sets it apart from other airlines. The company primarily focuses on underserved leisure markets and offers low-cost, non-stop flights to popular vacation destinations. This strategy has proven successful, as ALLEGIANT TRAVEL has consistently outperformed its competitors in terms of profitability. In conclusion, based on our analysis, ALLEGIANT TRAVEL appears to be significantly undervalued compared to its intrinsic value. With a strong financial track record and a unique business model, the company has the potential for long-term growth and could be an attractive investment opportunity. However, as with any investment, it is important for investors to conduct their own research and carefully consider the risks before making a decision. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Allegiant Travel. More…
| Total Revenues | Net Income | Net Margin |
| 2.51k | 113.41 | 5.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Allegiant Travel. More…
| Operations | Investing | Financing |
| 450.69 | -491.42 | 33.12 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Allegiant Travel. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.91k | 2.26k | 72.2 |
Key Ratios Snapshot
Some of the financial key ratios for Allegiant Travel are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 36.4% | 114.4% | 10.6% |
| FCF Margin | ROE | ROA |
| -3.4% | 12.5% | 3.4% |
Peers
The competition among Allegiant Travel Co, Korean Air Lines Co Ltd, Cebu Air Inc, and InterGlobe Aviation Ltd is fierce. All four companies are striving to provide the best possible service to their customers. Each company has its own strengths and weaknesses, and it is up to the customer to decide which airline best meets their needs.
– Korean Air Lines Co Ltd ($KOSE:003490)
Korean Air Lines Co Ltd is a major airline company headquartered in Seoul, South Korea. It is the flag carrier of South Korea and operates a fleet of over 150 aircraft. The company has a market cap of 7.89T as of 2022 and a Return on Equity of 20.57%. Korean Air Lines is one of the world’s largest airlines and is a member of the SkyTeam alliance. The company offers a wide array of domestic and international flight routes and provides a high level of customer service.
– Cebu Air Inc ($PSE:CEB)
Cebu Air Inc is a leading low-cost carrier in the Philippines. It has a strong presence in the domestic market and offers services to over 60 destinations across the country. The company has a market cap of 22.34B as of 2022 and a Return on Equity of -580.13%. Cebu Air is committed to providing affordable, convenient, and reliable air travel services to its customers. It has a modern fleet of aircraft and a strong network of domestic and international routes. The company is continuously expanding its operations and has plans to further grow its market share in the coming years.
– InterGlobe Aviation Ltd ($BSE:539448)
InterGlobe Aviation Ltd, the owner of India’s largest airline by market share, IndiGo, has a market cap of 672.27B as of 2022. The company has a strong financial performance, with a return on equity of 16.73%. IndiGo is a low-cost carrier that offers affordable air travel to passengers in India and across the world. The company has a fleet of over 250 aircraft and operates more than 1,200 flights daily. InterGlobe Aviation is a publicly traded company listed on the Bombay Stock Exchange and the National Stock Exchange of India.
Summary
Fort Washington Investment Advisors Inc. OH recently decreased its holdings in Allegiant Travel, signaling a decrease in confidence in the stock. This investment analysis suggests that the company’s prospects may not be as strong as previously thought. It is possible that the drop in holdings is due to various factors such as poor financial performance or a decline in industry trends.
This could be a warning sign for investors to reassess their investments in Allegiant Travel and consider the potential risks involved. Investors should closely monitor any further changes in holdings and keep a close eye on the company’s financial performance.
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