ALGT Should I Buy
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Allegiant Travel Co (ALGT) is not a strong buy for a beginner investor with a long-term strategy at this moment. While the stock has some positive catalysts, including bullish moving averages and analyst upgrades, the recent financial performance, insider selling, and lack of strong proprietary trading signals suggest caution. A hold position is recommended until clearer positive momentum is established.
The stock shows bullish moving averages (SMA_5 > SMA_20 > SMA_200), but the RSI is neutral at 42.754, and the MACD histogram is positively contracting at 0.26. Key support is at 100.538, and resistance is at 108.446. The stock is currently below the pivot level, indicating a bearish short-term trend.
Analysts have raised price targets recently, with some firms highlighting strong Q4 results and potential EPS growth.
The merger with Sun Country Airlines is seen as transformational, with potential long-term synergies.
Hedge funds are increasing their positions, with a 507.50% increase in buying activity last quarter.
Insiders are heavily selling, with a 150,894.53% increase in selling activity last month.
The stock dropped 5.08% in the regular market session and 0.75% post-market, showing weak short-term momentum.
Financial performance in Q4 2025 showed a significant drop in net income (-114.59% YoY) and EPS (-114.40% YoY).
In Q4 2025, revenue increased by 4.54% YoY to $656.19 million. However, net income dropped by -114.59% YoY to $31.54 million, and EPS fell by -114.40% YoY to 1.73. Gross margin also declined slightly to 60.07%, down -1.59% YoY.
Analysts are generally positive, with multiple firms raising price targets. The highest target is $130 (Seaport Research), and the lowest is $102 (UBS). Analysts highlight strong Q4 results, improved guidance, and potential synergies from the Sun Country merger. However, some firms maintain Neutral ratings, citing cautious optimism.
