Southwest Airlines (LUV) Downgraded to Sell at ValuEngine

ValuEngine lowered shares of Southwest Airlines (NYSE:LUV) from a hold rating to a sell rating in a research report released on Monday.

A number of other research firms have also commented on LUV. Citigroup reduced their target price on Southwest Airlines from $74.00 to $67.00 and set a buy rating for the company in a report on Monday, April 30th. Cowen reduced their target price on Southwest Airlines from $67.00 to $65.00 and set an outperform rating for the company in a report on Friday, April 27th. Imperial Capital reduced their target price on Southwest Airlines from $75.00 to $68.00 and set an outperform rating for the company in a report on Friday, April 27th. Stephens set a $74.00 target price on Southwest Airlines and gave the stock a buy rating in a report on Tuesday, April 17th. Finally, Zacks Investment Research lowered Southwest Airlines from a buy rating to a hold rating in a report on Tuesday, March 13th. Three analysts have rated the stock with a sell rating, three have assigned a hold rating and sixteen have issued a buy rating to the stock. The company presently has an average rating of Buy and a consensus target price of $70.45.

LUV stock opened at $52.00 on Monday. Southwest Airlines has a twelve month low of $49.76 and a twelve month high of $66.99. The company has a debt-to-equity ratio of 0.50, a current ratio of 0.67 and a quick ratio of 0.61. The company has a market cap of $30.60 billion, a P/E ratio of 14.50, a P/E/G ratio of 0.87 and a beta of 1.16.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings data on Thursday, April 26th. The airline reported $0.75 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.74 by $0.01. Southwest Airlines had a return on equity of 23.25% and a net margin of 16.95%. The company had revenue of $4.94 billion during the quarter, compared to analyst estimates of $5 billion. During the same quarter last year, the company earned $0.61 EPS. The firm’s revenue for the quarter was up 1.9% on a year-over-year basis. equities research analysts forecast that Southwest Airlines will post 4.6 earnings per share for the current fiscal year.

In other news, Director William H. Dr Cunningham purchased 3,500 shares of the company’s stock in a transaction dated Monday, February 12th. The shares were purchased at an average cost of $56.25 per share, for a total transaction of $196,875.00. Following the purchase, the director now directly owns 70,469 shares in the company, valued at approximately $3,963,881.25. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Douglas H. Brooks sold 10,000 shares of the firm’s stock in a transaction on Tuesday, March 13th. The stock was sold at an average price of $60.05, for a total value of $600,500.00. Following the completion of the transaction, the director now owns 56,269 shares in the company, valued at $3,378,953.45. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 108,473 shares of company stock worth $6,296,091. Company insiders own 0.23% of the company’s stock.

Hedge funds have recently added to or reduced their stakes in the company. Cerebellum GP LLC purchased a new position in shares of Southwest Airlines in the 4th quarter worth $127,000. SeaCrest Wealth Management LLC purchased a new position in Southwest Airlines during the fourth quarter valued at $136,000. Delpha Capital Management LLC purchased a new position in Southwest Airlines during the fourth quarter valued at $151,000. Financial Gravity Companies Inc. lifted its position in Southwest Airlines by 319.4% during the first quarter. Financial Gravity Companies Inc. now owns 3,217 shares of the airline’s stock valued at $168,000 after purchasing an additional 2,450 shares in the last quarter. Finally, Steward Partners Investment Advisory LLC lifted its position in Southwest Airlines by 580.7% during the fourth quarter. Steward Partners Investment Advisory LLC now owns 2,607 shares of the airline’s stock valued at $170,000 after purchasing an additional 2,224 shares in the last quarter. Hedge funds and other institutional investors own 80.40% of the company’s stock.

Southwest Airlines Company Profile

Southwest Airlines Co operates a passenger airline that provides scheduled air transportation services in the United States and near-international markets. As of December 31, 2017, the company operated a total of 706 Boeing 737 aircraft; and served 100 destinations in 40 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as 10 near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, Turks, and Chaos.

To view ValuEngine’s full report, visit ValuEngine’s official website.

Analyst Recommendations for Southwest Airlines (NYSE:LUV)

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