Here's What Pressured Allegiant Travel Company (ALGT) in Q1
Diamond Hill Capital, an investment management company, released its 'Small Cap Fund' first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q1, markets were uneven due to the new presidential administration's activity, leading to concern about the future. The Russell 3000 Index fell by 4.7% in Q1, the first quarterly loss since Q3 2023. Diamond Hill Small Cap Fund returned -11.56% in Q1, trailing the Russell 2000 Index's -9.48% return. For more information on the fund's top picks in 2025, please check its top five holdings.
In its first-quarter 2025 investor letter, Diamond Hill Small Cap Fund highlighted stocks such as Allegiant Travel Company (NASDAQ:ALGT). Based in Las Vegas, Nevada, Allegiant Travel Company (NASDAQ:ALGT) is a leisure travel company. The one-month return of Allegiant Travel Company (NASDAQ:ALGT) was 1.85%, and its shares lost 6.88% of their value over the last 52 weeks. On May 6, 2025, Allegiant Travel Company (NASDAQ:ALGT) stock closed at $49.41 per share with a market capitalization of $901.965 billion.
Diamond Hill Small Cap Fund stated the following regarding Allegiant Travel Company (NASDAQ:ALGT) in its Q1 2025 investor letter:
"Other bottom Q1 contributors included First Advantage, Civitas Resources and Allegiant Travel Company (NASDAQ:ALGT). Regional airline Allegiant Travel fell against a challenging macroeconomic backdrop and concerns about consumer spending, which could hurt customer demand. Further, there are some concerns the recently announced US tariffs could impact Boeing's ability to deliver new planes to Allegiant as expected. However, we maintain our conviction in Allegiant's resiliency in the long term and are maintaining our position."
Is Allegiant Travel Company (ALGT) the Best Airline Stock to Buy Now?
A busy airport terminal with travelers passing through on their leisure travels.
Allegiant Travel Company (NASDAQ:ALGT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Allegiant Travel Company (NASDAQ:ALGT) at the end of the fourth quarter, compared to 15 in the third quarter. While we acknowledge the potential of Allegiant Travel Company (NASDAQ:ALGT) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we covered Allegiant Travel Company (NASDAQ:ALGT) and shared the list of best airline stocks to buy. In the previous quarter investor letter, Diamond Hill Small Cap Fund discussed Allegiant Travel Company (NASDAQ:ALGT), highlighting its rise as concerns eased—particularly following the resolution of the Boeing strike. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
29 minutes ago
- Yahoo
Apple Poised to Monetize AI at WWDC 2025
Apple (NASDAQ:AAPL) looks ready to kick off its AI monetization era with system-wide updates at WWDC 2025, Wedbush's Daniel Ives says, setting the stage for paid AI features across the Apple ecosystem. The keynote at 1 p.m. ET today at Apple Park will unveil '26 upgrades for macOS, iOS and iPadOS powered by Apple Intelligence, countering Street skepticism about a slow AI rollout. In his Monday note, Ives argued that WWDC marks the start of Apple's AI cash flow, not a mere feature demo, as the company layers new AI-driven capabilities into core OS updates. He expects details on Siri's deeper integration with Google's Gemini and OpenAI's ChatGPT, demonstrating how Apple will embed AI across native apps to drive user engagementand, ultimately, device upgrades when iPhone 17 ships next year. With over 100 million iPhones in China due for an upgrade, Ives also eyes an announcement on Apple's partnership with Alibaba (NYSE:BABA) to deploy AI services locally, a move he calls critical for unlocking growth in the world's largest smartphone market. Wedbush reiterates its Outperform rating and raises its 12-month price target to $270, noting that Apple's edge isn't in building the most advanced large language model but in toll-collecting'' on its vast hardware base. Apple's unmatched ecosystem ensures that any third-party AI app must run through Cupertino, highlighting how AI unlocks new services revenue without upending its product strategy. Why It Matters: WWDC's AI announcements could shift Wall Street sentiment, validating Apple's long-term AI strategy and fueling expectations for recurring software revenue beyond hardware sales. Investors will watch for concrete details on AI feature pricing, Siri-Gemini integrations and the Alibaba tie-up during today's keynote and in the follow-up developer sessions. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Business Wire
30 minutes ago
- Business Wire
KBRA Assigns Preliminary Ratings to Pagaya AI Debt Grantor Trust 2025-4 and Pagaya AI Debt Trust 2025-4
NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to 12 classes of notes issued by Pagaya AI Debt Grantor Trust 2025-4 and Pagaya AI Debt Trust 2025-4 (collectively 'PAID 2025-4'), an unsecured consumer loan ABS transaction. PAID 2025-4 has initial hard credit enhancement levels of 65.29% for the Class A-1 Notes to 3.67% for the Class F Notes. Credit enhancement is comprised of overcollateralization, subordination (except for the Class F Notes), a cash reserve account funded at closing, and excess spread. PAID 2025-4 will issue 13 classes of notes totaling $490.0 million with KBRA rating the Class A-1 through Class F Notes, Class A, Class AB, Class ABC, Class ABCD, and Class EF Notes. KBRA will not be providing ratings on the Certificates or the FR Securities. PAID 2025-4 is a fully prefunded transaction where there will be no collateral funded at closing. Pagaya Structured Products LLC, the sponsor and administrator, is a fully owned subsidiary of Pagaya US Holding Company LLC (formerly known as Pagaya Investments US LLC), which is 100% owned by Pagaya Technologies Ltd. ('Pagaya Technologies'), an Israeli corporation listed on the NASDAQ (PGY). Pagaya Technologies is a financial technology company in the lending marketplace that uses AI-driven credit and analysis technology. This transaction is the 45th publicly rated securitization sponsored by Pagaya Structured Products LLC (collectively with its affiliates, 'Pagaya' or the 'Company'). KBRA applied its Consumer Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the transaction's proposed capital structure and Pagaya's historical static pool data. KBRA considered its operational reviews of Pagaya and each of the Platform Sellers, as well as periodic update calls with the Company and Platform Sellers. KBRA has recently conducted surveillance on each platform's KBRA-rated securitizations. Operative agreements and legal opinions will be reviewed prior to closing. To access ratings and relevant documents, click here. Click here to view the report. Methodologies Disclosures Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above. A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here. Information on the meaning of each rating category can be located here. Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at About KBRA Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan's Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Doc ID: 1009832
Yahoo
31 minutes ago
- Yahoo
Why EchoStar Stock Is Falling Today
EchoStar has been under regulatory pressure over its use of the spectrum earmarked for a new nationwide cellular carrier. The company reportedly could consider a bankruptcy filing to help shield its spectrum licenses from the threat of revocation. 10 stocks we like better than EchoStar › Telecom and satellite company EchoStar (NASDAQ: SATS) is reportedly considering a bankruptcy filing to protect its spectrum licenses. Investors are not taking the threat lightly, sending EchoStar shares down as much as 15% at the open and down 8% as of 11 a.m. Eastern. EchoStar is a satellite television and communications company currently focused on growing a nationwide cellular business. The company owns Boost Mobile, the nation's fourth-largest wireless carrier, and is building out the network using its spectrum holdings. But regulators appear to be growing impatient with the company's progress. Reports surfaced last month that the Federal Communications Commission has opened an investigation into EchoStar's compliance with federal requirements to build out a nationwide 5G network according to milestones set in 2019. EchoStar responded with evidence that it is indeed building out the network as required, but the spectrum resources are valuable and coveted by several companies. Included in that list is SpaceX, whose chairman, Elon Musk, has complained about EchoStar's progress and demanded the spectrum be opened to other users, including SpaceX's Starlink. Late Friday, The Wall Street Journal reported EchoStar is considering a Chapter 11 bankruptcy filing as a way to shield its spectrum licenses from the threat of revocation. In theory, a filing would leave decisions about the spectrum up to a judge, not regulators. Given EchoStar's structure, it is not entirely out of the question that shareholders would get something out of a bankruptcy. But it is a very high-risk bet. In bankruptcy, equity holders have the least protection, and shares are often zeroed out. EchoStar declined to comment on the bankruptcy rumors, and a filing is far from certain. Political winds change direction quickly, and it is possible recent events in Washington could cause the FCC not to prioritize the EchoStar spectrum. If the company does file, debt holders are likely to capture a lot of the value of the reorganized company. There's a lot of risk to EchoStar right now, but also a lot of potential value if the company is allowed to continue on its path toward building Boost Mobile. Investors considering buying in should be prepared for further turbulence and limit EchoStar to a small part of a well-diversified portfolio. Before you buy stock in EchoStar, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and EchoStar wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why EchoStar Stock Is Falling Today was originally published by The Motley Fool
