Southwest Airlines Co. (NYSE:LUV) Receives Average Rating of “Reduce” from Brokerages

Shares of Southwest Airlines Co. (NYSE:LUV) have received a consensus rating of “Reduce” from the eighteen research firms that are covering the firm, MarketBeat Ratings reports. Four equities research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and three have given a buy rating to the company. The average 12 month price objective among analysts that have updated their coverage on the stock in the last year is $32.55.

A number of research analysts have commented on LUV shares. JPMorgan Chase & Co. increased their price objective on shares of Southwest Airlines from $20.00 to $26.00 and gave the company a “neutral” rating in a research note on Friday, October 25th. UBS Group lifted their price target on Southwest Airlines from $27.00 to $29.00 and gave the stock a “sell” rating in a research note on Tuesday. Bank of America assumed coverage on Southwest Airlines in a research report on Monday, November 4th. They set a “neutral” rating and a $33.00 price target on the stock. Morgan Stanley reaffirmed an “overweight” rating and issued a $42.00 price objective on shares of Southwest Airlines in a report on Wednesday, December 11th. Finally, StockNews.com raised shares of Southwest Airlines from a “sell” rating to a “hold” rating in a report on Monday, October 28th.

Southwest Airlines Stock Down 3.0 %

NYSE LUV opened at $32.80 on Wednesday. The company has a quick ratio of 0.83, a current ratio of 0.88 and a debt-to-equity ratio of 0.49. Southwest Airlines has a fifty-two week low of $23.58 and a fifty-two week high of $36.12. The business has a 50 day moving average price of $32.74 and a two-hundred day moving average price of $29.91. The stock has a market cap of $19.67 billion, a PE ratio of -468.57, a P/E/G ratio of 7.38 and a beta of 1.14.

Southwest Airlines (NYSE:LUV) last issued its quarterly earnings data on Thursday, October 24th. The airline reported $0.15 EPS for the quarter, topping analysts’ consensus estimates of $0.05 by $0.10. Southwest Airlines had a negative net margin of 0.06% and a positive return on equity of 4.56%. The firm had revenue of $6.87 billion for the quarter, compared to analyst estimates of $6.77 billion. During the same quarter in the previous year, the business posted $0.38 EPS. The firm’s revenue was up 5.3% compared to the same quarter last year. As a group, sell-side analysts predict that Southwest Airlines will post 0.78 EPS for the current fiscal year.

Southwest Airlines Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, January 16th. Investors of record on Thursday, December 26th will be given a $0.18 dividend. The ex-dividend date is Thursday, December 26th. This represents a $0.72 dividend on an annualized basis and a yield of 2.20%. Southwest Airlines’s dividend payout ratio is presently -1,028.57%.

Insiders Place Their Bets

In other news, insider Linda B. Rutherford sold 3,849 shares of the business’s stock in a transaction on Friday, December 6th. The stock was sold at an average price of $34.40, for a total value of $132,405.60. Following the sale, the insider now owns 89,376 shares of the company’s stock, valued at approximately $3,074,534.40. The trade was a 4.13 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, major shareholder Elliott Investment Management sold 1,203,920 shares of the firm’s stock in a transaction dated Monday, October 28th. The shares were sold at an average price of $29.83, for a total value of $35,912,933.60. Following the transaction, the insider now directly owns 59,912,580 shares of the company’s stock, valued at $1,787,192,261.40. This represents a 1.97 % decrease in their position. The disclosure for this sale can be found here. 0.33% of the stock is owned by insiders.

Institutional Trading of Southwest Airlines

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Ashton Thomas Private Wealth LLC acquired a new position in shares of Southwest Airlines in the 2nd quarter worth $29,000. Ashton Thomas Securities LLC acquired a new stake in Southwest Airlines during the 3rd quarter worth about $33,000. TD Private Client Wealth LLC boosted its holdings in shares of Southwest Airlines by 41.1% in the third quarter. TD Private Client Wealth LLC now owns 1,184 shares of the airline’s stock worth $35,000 after buying an additional 345 shares during the period. CVA Family Office LLC increased its position in shares of Southwest Airlines by 60.6% in the third quarter. CVA Family Office LLC now owns 1,661 shares of the airline’s stock worth $49,000 after acquiring an additional 627 shares in the last quarter. Finally, New England Capital Financial Advisors LLC raised its holdings in shares of Southwest Airlines by 35.3% during the third quarter. New England Capital Financial Advisors LLC now owns 1,923 shares of the airline’s stock valued at $57,000 after acquiring an additional 502 shares during the period. 80.82% of the stock is owned by institutional investors and hedge funds.

Southwest Airlines Company Profile

Southwest Airlines Co operates as a passenger airline company that provides scheduled air transportation services in the United States and near-international markets. As of December 31, 2023, the company operated a total fleet of 817 Boeing 737 aircraft; and served 121 destinations in 42 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as ten near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos.