Allegiant Travel Stock Falters Again

ALGT's horrible year continues

Allegiant Travel Company (NASDAQ:ALGT) is adding to its massive year-to-date losses after the company's earnings report. Earnings per share for the third quarter came in at 94 cents, lower than the average analyst estimate of 96 cents. As such, ALGT is trading down 6.6% at $107.86, pennies above the new four-year low it hit this morning, with Cowen jumping in with a price-target cut to $132 from $142.

The equity had already been in a massive decline this year, losing more than one-fourth of its value year-to-date even before today. Much of the selling began back in April when the airliner was thrown into the national spotlight by a damaging "60 Minutes" investigation. During the stock's decline the 50-day moving average has easily blocked any type of breakout attempt.

Not surprisingly, short interest is high on Allegiant Travel, accounting for almost 10% of the total float. Going by average daily trading volumes, it'd take short sellers more than a week to cover their positions. Some traders already started to cover their positions against ALGT, however, since short interest fell by more than 21% in the last two reporting periods.

It's also worth nothing that the equity still has a few bullish analysts in its corner, with four of the nine covering brokerage firms handing out "strong buy" recommendations. Going forward, it'll be worth monitoring if these bulls begin to lose hope in the struggling travel stock.