Will Allegiant Travel Company (ALGT) Stock Bounce Back?

Diamond Hill Capital, an investment management company, released its “Small Cap Strategy” third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the strategy returned -1.50% net of fees compared to a -2.19% return for the Russell 2000 Index. Investment in consumer staples, technology, and financial sectors contributed positively to the strategy’s performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Diamond Hill Capital discussed stocks like Allegiant Travel Company (NASDAQ:ALGT) in the Q3 2022 investor letter. Based in Las Vegas, Nevada, Allegiant Travel Company (NASDAQ:ALGT) is a leisure travel company. On October 24, 2022, Allegiant Travel Company (NASDAQ:ALGT) stock closed at $67.47 per share. One-month return of Allegiant Travel Company (NASDAQ:ALGT) was -10.43% and its shares lost 62.69% of their value over the last 52 weeks. Allegiant Travel Company (NASDAQ:ALGT) has a market capitalization of $1.227 billion.

Diamond Hill Capital made the following comment about Allegiant Travel Company (NASDAQ:ALGT) in its Q3 2022 investor letter:

“Bottom contributors in Q3 included Allegiant Travel Company (NASDAQ:ALGT) and ESAB Corporation. Shares of low-cost airline Allegiant Travel were weak as higher fuel and labor costs pressured profitability and recession fears weighed on market sentiment. We continue to like Allegiant’s focus on leisure travel — which should continue bouncing back — and view shares as trading at a substantial discount to our estimate of intrinsic value.”

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Allegiant Travel Company (NASDAQ:ALGT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Allegiant Travel Company (NASDAQ:ALGT) at the end of the second quarter, which was 24 in the previous quarter.

We discussed Allegiant Travel Company (NASDAQ:ALGT) in another article and shared Diamond Hill Capital’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.