Southwest Airlines Co. (NYSE:LUV) Given Average Rating of “Reduce” by Analysts

Southwest Airlines Co. (NYSE:LUV) has earned an average rating of “Reduce” from the eighteen ratings firms that are currently covering the stock, Marketbeat.com reports. Six analysts have rated the stock with a sell recommendation, eight have issued a hold recommendation and four have assigned a buy recommendation to the company. The average 1-year price objective among brokerages that have covered the stock in the last year is $31.78.

A number of equities research analysts recently commented on LUV shares. TD Cowen lifted their price target on shares of Southwest Airlines from $25.00 to $28.00 and gave the stock a “hold” rating in a report on Friday, December 6th. Bank of America restated an “underperform” rating and issued a $31.00 target price (down from $33.00) on shares of Southwest Airlines in a research note on Friday, January 17th. Argus upgraded Southwest Airlines from a “hold” rating to a “buy” rating and set a $35.00 price target for the company in a research note on Tuesday, February 11th. Barclays lifted their price objective on Southwest Airlines from $32.00 to $35.00 and gave the stock an “equal weight” rating in a report on Friday, December 6th. Finally, Morgan Stanley reaffirmed an “overweight” rating and set a $42.00 price objective on shares of Southwest Airlines in a report on Wednesday, December 11th.

Insider Buying and Selling

In related news, insider Linda B. Rutherford sold 3,849 shares of the business’s stock in a transaction dated Friday, December 6th. The stock was sold at an average price of $34.40, for a total transaction of $132,405.60. Following the completion of the transaction, the insider now directly owns 89,376 shares in the company, valued at $3,074,534.40. The trade was a 4.13 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.33% of the stock is currently owned by company insiders.

Institutional Trading of Southwest Airlines

Several institutional investors and hedge funds have recently modified their holdings of the business. Kestra Investment Management LLC purchased a new stake in Southwest Airlines in the fourth quarter valued at approximately $26,000. Raleigh Capital Management Inc. grew its stake in Southwest Airlines by 186.7% in the 4th quarter. Raleigh Capital Management Inc. now owns 883 shares of the airline’s stock worth $30,000 after buying an additional 575 shares in the last quarter. Sanctuary Wealth Management L.L.C. increased its holdings in shares of Southwest Airlines by 196.3% in the 4th quarter. Sanctuary Wealth Management L.L.C. now owns 889 shares of the airline’s stock worth $30,000 after buying an additional 589 shares during the last quarter. Ashton Thomas Securities LLC purchased a new stake in shares of Southwest Airlines during the 3rd quarter valued at $33,000. Finally, TD Private Client Wealth LLC lifted its holdings in shares of Southwest Airlines by 41.1% during the 3rd quarter. TD Private Client Wealth LLC now owns 1,184 shares of the airline’s stock worth $35,000 after acquiring an additional 345 shares during the last quarter. Hedge funds and other institutional investors own 80.82% of the company’s stock.

Southwest Airlines Trading Up 1.5 %

Shares of Southwest Airlines stock opened at $30.70 on Thursday. The firm has a market cap of $18.19 billion, a PE ratio of 42.63, a P/E/G ratio of 0.97 and a beta of 1.14. Southwest Airlines has a 1 year low of $23.58 and a 1 year high of $36.12. The company has a debt-to-equity ratio of 0.49, a current ratio of 0.92 and a quick ratio of 0.85. The stock has a fifty day moving average price of $31.97 and a 200-day moving average price of $30.94.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings data on Thursday, January 30th. The airline reported $0.56 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.45 by $0.11. Southwest Airlines had a net margin of 1.69% and a return on equity of 5.77%. Equities research analysts anticipate that Southwest Airlines will post 1.55 EPS for the current year.

Southwest Airlines Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 2nd. Stockholders of record on Wednesday, March 12th will be given a dividend of $0.18 per share. The ex-dividend date of this dividend is Wednesday, March 12th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 2.35%. Southwest Airlines’s dividend payout ratio (DPR) is currently 100.00%.

About Southwest Airlines

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.