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

Shares of Southwest Airlines Co. (NYSE:LUV) have been given a consensus recommendation of “Reduce” by the eighteen brokerages that are covering the firm, Marketbeat.com reports. Six research analysts have rated the stock with a sell rating, eight have issued a hold rating and four have issued a buy rating on the company. The average 12 month price target among brokers that have updated their coverage on the stock in the last year is $31.78.

A number of research firms have recently weighed in on LUV. Barclays increased their price objective on Southwest Airlines from $32.00 to $35.00 and gave the company an “equal weight” rating in a research note on Friday, December 6th. Morgan Stanley reissued an “overweight” rating and set a $42.00 price target on shares of Southwest Airlines in a research report on Wednesday, December 11th. Sanford C. Bernstein boosted their price objective on shares of Southwest Airlines from $30.00 to $33.00 and gave the company a “market perform” rating in a research report on Wednesday, December 11th. Citigroup reiterated a “sell” rating and set a $29.50 target price (down from $31.50) on shares of Southwest Airlines in a report on Thursday, January 16th. Finally, Susquehanna reduced their price target on Southwest Airlines from $38.00 to $34.00 and set a “neutral” rating on the stock in a report on Tuesday, February 4th.

Southwest Airlines Stock Performance

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

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

Southwest Airlines Announces Dividend

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

Insider Activity

In related news, insider Linda B. Rutherford sold 3,849 shares of the stock in a transaction dated Friday, December 6th. The shares were sold at an average price of $34.40, for a total value 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. This trade represents a 4.13 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 0.33% of the company’s stock.

Institutional Investors Weigh In On Southwest Airlines

A number of hedge funds and other institutional investors have recently bought and sold shares of LUV. Ameriflex Group Inc. bought a new stake in shares of Southwest Airlines in the 4th quarter worth approximately $131,000. Forum Financial Management LP raised its stake in Southwest Airlines by 92.2% during the fourth quarter. Forum Financial Management LP now owns 16,599 shares of the airline’s stock valued at $558,000 after buying an additional 7,963 shares during the last quarter. Public Employees Retirement System of Ohio boosted its holdings in Southwest Airlines by 31.0% in the fourth quarter. Public Employees Retirement System of Ohio now owns 284,312 shares of the airline’s stock worth $9,559,000 after acquiring an additional 67,307 shares in the last quarter. GTS Securities LLC grew its stake in shares of Southwest Airlines by 108.8% in the fourth quarter. GTS Securities LLC now owns 7,986 shares of the airline’s stock worth $268,000 after acquiring an additional 98,593 shares during the last quarter. Finally, WS Management Lllp bought a new position in shares of Southwest Airlines during the fourth quarter valued at $20,172,000. Hedge funds and other institutional investors own 80.82% of the company’s stock.

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.