Allegiant Travel (NASDAQ:ALGT) Shares Gap Down – Time to Sell?

Allegiant Travel Company (NASDAQ:ALGT)’s share price gapped down before the market opened on Monday . The stock had previously closed at $94.97, but opened at $90.65. Allegiant Travel shares last traded at $90.7310, with a volume of 144,564 shares trading hands.

Key Headlines Impacting Allegiant Travel

Here are the key news stories impacting Allegiant Travel this week:

• Positive Sentiment: Planned synergies and network scale — Management expects roughly $140 million in annual cost and revenue synergies and positions the combined carrier as a larger leisure-focused competitor, which could improve long-term margins and route economics. Allegiant and Sun Country Airlines to Combine (PR Newswire)
• Positive Sentiment: Some analysts and media view consolidation favorably — Coverage notes potential strategic benefits from consolidation in the ultra-low-cost segment and at least one outlet reports a raised price target, reflecting upside expectations if integration and synergies materialize. Two Low-Cost Airlines Plan to Merge (Investopedia)
• Neutral Sentiment: Deal structure and consideration — The transaction is valued at about $1.5 billion (including debt) with an implied $18.89 per SNCY share: Sun Country holders receive 0.1557 Allegiant shares plus $4.10 cash. These mechanics determine dilution and cash needs but aren’t immediately accretive until synergies are realized. Allegiant Signs $1.5B Cash-and-Stock Deal to Purchase Sun Country (Zacks)
• Neutral Sentiment: Timing and ownership split — Closing is expected in the second half of 2026; upon close Allegiant shareholders would own roughly 67% of the combined company, which matters for governance and future capital allocation. Allegiant to acquire Sun Country Airlines for $1.5 billion (Reuters)
• Negative Sentiment: Market reaction: share price sold off — Investors reacted negatively at open, citing concerns about the deal’s cost, potential dilution and the need to fund cash consideration and integration, which has pushed ALGT lower on heavy volume. Allegiant Travel Stock Gaps Lower After $1.5B Rival Acquisition (Schaeffers)
• Negative Sentiment: Shareholder litigation / fairness concerns — An investor-rights firm has opened an investigation into whether the merger is fair to Allegiant shareholders, which could lead to legal challenges or delays. ALGT Stock Alert: Halper Sadeh LLC Investigation (Business Wire)
• Negative Sentiment: Sector headwinds and integration risk — Analysts note that ultra-low-cost carriers face rising costs and capacity pressures; combining two lower-margin leisure carriers creates execution risk for achieving promised synergies. Allegiant to buy rival budget airline Sun Country (CNBC)

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on ALGT. Zacks Research upgraded shares of Allegiant Travel from a “hold” rating to a “strong-buy” rating in a report on Friday, January 2nd. Barclays boosted their price objective on Allegiant Travel from $60.00 to $95.00 and gave the stock an “equal weight” rating in a research note on Monday. Wall Street Zen upgraded Allegiant Travel from a “sell” rating to a “hold” rating in a report on Sunday, December 28th. Evercore ISI boosted their target price on Allegiant Travel from $75.00 to $85.00 and gave the company an “outperform” rating in a research report on Monday, September 29th. Finally, Raymond James Financial lowered Allegiant Travel from a “strong-buy” rating to an “outperform” rating and increased their price target for the company from $78.00 to $98.00 in a report on Friday, December 19th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Allegiant Travel presently has a consensus rating of “Hold” and a consensus price target of $91.27.

Allegiant Travel Stock Down 6.3%

The company’s 50 day moving average is $78.35 and its 200 day moving average is $65.73. The company has a market cap of $1.63 billion, a PE ratio of -5.46, a P/E/G ratio of 0.26 and a beta of 1.64. The company has a current ratio of 0.98, a quick ratio of 0.95 and a debt-to-equity ratio of 1.76.

Allegiant Travel (NASDAQ:ALGT) last issued its earnings results on Thursday, May 12th. The transportation company reported $1.18 EPS for the quarter. Allegiant Travel had a negative net margin of 11.36% and a positive return on equity of 5.24%. The business had revenue of $496.88 million for the quarter. Allegiant Travel has set its FY 2025 guidance at 3.000- EPS and its Q4 2025 guidance at 1.500-2.500 EPS. As a group, analysts predict that Allegiant Travel Company will post 7.7 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Allegiant Travel

Several institutional investors have recently made changes to their positions in the company. Hantz Financial Services Inc. increased its position in shares of Allegiant Travel by 442.0% during the third quarter. Hantz Financial Services Inc. now owns 542 shares of the transportation company’s stock worth $33,000 after purchasing an additional 442 shares in the last quarter. Steward Partners Investment Advisory LLC increased its position in Allegiant Travel by 28.3% during the 2nd quarter. Steward Partners Investment Advisory LLC now owns 930 shares of the transportation company’s stock valued at $51,000 after buying an additional 205 shares in the last quarter. GAMMA Investing LLC increased its position in Allegiant Travel by 58.1% during the 2nd quarter. GAMMA Investing LLC now owns 1,108 shares of the transportation company’s stock valued at $61,000 after buying an additional 407 shares in the last quarter. AlphaQuest LLC raised its stake in Allegiant Travel by 119.2% in the third quarter. AlphaQuest LLC now owns 1,120 shares of the transportation company’s stock valued at $68,000 after buying an additional 609 shares during the last quarter. Finally, iSAM Funds UK Ltd acquired a new stake in Allegiant Travel in the third quarter worth about $69,000. Hedge funds and other institutional investors own 85.81% of the company’s stock.

Allegiant Travel Company Profile

Allegiant Travel Company is a holding company that operates Allegiant Air, a low‐cost leisure airline offering scheduled and charter air service. The company focuses on connecting underserved secondary markets with popular vacation destinations across the United States. By targeting price‐sensitive leisure travelers, Allegiant Air operates a point‐to‐point network that avoids the traditional hub‐and‐spoke model, providing non‐stop flights from smaller cities to resort and entertainment hubs.

In addition to its core flight operations, Allegiant Travel Company offers packaged travel services that include hotel accommodations, rental cars and attraction tickets through its online portal.