Jim Cramer Recommends Selling These 5 Stocks

4. Allegiant Travel Company (NASDAQ:ALGT)

Number of Hedge Fund Holders: 24 

Allegiant Travel Company (NASDAQ:ALGT) is a Nevada-based leisure travel company. The journalist investor gave the stock a Sell recommendation during the Lightning Round of his show on June 2. In response to a viewer question about his views on the stock, Cramer said that he would rather be invested in established travel stocks like Expedia or Airbnb than Allegiant. 

In early April, Barclays analyst Brandon Oglenski maintained a Buy rating on Allegiant Travel Company (NASDAQ:ALGT) stock and lowered the price target to $220 from $275, noting that fuel and labor expenses were climbing for travel firms. 

At the end of the first quarter of 2022, 24 hedge funds in the database of Insider Monkey held stakes worth $230 million in Allegiant Travel Company (NASDAQ:ALGT), the same as in the previous quarter worth $293 million.

In its Q2 2021 investor letter, Wasatch Global Investors, an asset management firm, highlighted a few stocks and Allegiant Travel Company (NASDAQ:ALGT) was one of them. Here is what the fund said:

“Allegiant Travel Company (NASDAQ:ALGT) was also a large detractor. Allegiant offers airline flights, hotel bookings, car rentals, travel management and other related services. When the stock price declined in 2020, we performed more research on the company. Although other travel-related competitors were facing dire circumstances, Allegiant wasn’t forced to raise dilutive equity or take government money. Since then, Allegiant has strengthened its relationships with pilots and crews and has positioned itself to benefit from leisure travel—which should accelerate sooner than business travel. Although we didn’t purchase the company as a way to take advantage of the economic reopening, the stock did get a boost from economy-related optimism in the first quarter. During the second quarter, the stock simply gave back some of its gains but we still like the company’s fundamentals from a risk/reward perspective.”