Southwest Airlines Co. (NYSE:LUV) saw an upside of 2.34% to close Tuesday at $33.74 after adding $0.77 on the day. The 5-day average trading volume is 8,497,560 shares of the company’s common stock. It has gained $33.94 in the past week and touched a new high 2 times within the past 5 days. An average of 9,930,765 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 8,297,298.
LUV’s 1-month performance is -12.16% or -$3.85 on its low of $32.15 reached on 08/03/23. The company’s shares have touched a 52-week low of $28.40 and high of $40.39, with the stock’s rally to the 52-week high happening on 07/12/23. YTD, LUV has achieved 0.21% or $0.07 and has reached a new high 12 times. However, the current price is down -16.46% from the 52-week high price.
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Insider Transactions
LUV stock investors last saw insider trading activity on May 02.Green Ryan C. (EVP, Chief Commercial Officer) most recently sold 4,936 shares at $29.94 per share on May 02. This transaction cost the insider $147,787. Director, MONTFORD JOHN T, sold 2,250 shares at a price of $38.87 on Nov 10.
Valuation Metrics
LUV stock has a beta of 1.16. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 0.79 while the price-to-book (PB) in the most recent quarter is 1.86.
Southwest Airlines Co.’s quick ratio for the period ended June 29 was 1.20, with the current ratio over the same period at 1.30. As well, the company’s long term debt to equity for the quarter ending June 29 was 0.74, while the total debt to equity was 0.74.. In terms of profitability, the gross margin trailing 12 months is 68.50%. The trailing 12-month EBITDA margin is 6.45% while for the period ending June 29, Southwest Airlines Co.’s operating margin was 1.80%. The firm’s gross profit as reported stood at $6.1 billion against revenue of $23.81 billion.
Earnings Surprise
For the quarterly period ending June 29 this year, Southwest Airlines Co.’s cash and short-term investments amounted to $3.02 billion against total debt of $9.33 billion. Net income and sales went up compared to those figures reported in the previous quarter. Net income shrunk -11.27% to $683.0 million, while revenue of -$159.0 million was 123.28% off the previous quarter. Analysts expected LUV to announce $1.1 per share in earnings in its latest quarter, but it posted $1.09, representing a -0.90% surprise. EBITDA for the quarter stood at more than $1.16 billion. LUV stock balance sheet for the quarter ending June 29 shows that total liabilities totaled 25.73 billion, with total debt at $9.33 billion. Shareholders hold equity totaling $595.63 million.
Let’s look briefly at Southwest Airlines Co. (LUV) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 08 August was 44.33% to suggest the stock is trending Neutral, with historical volatility in this time period at 55.60%.
The stock’s 5-day moving average is $33.01, reflecting a +0.93% or $0.31 change from its current price. LUV is currently trading -13.88% above its 20-day SMA, +13.49% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +15.39% and SMA200 by+1.87%.
Stochastic %K and %D was 18.70% and 12.46% and the average true range (ATR) pointed at 1.10. The RSI (14) points at 45.07%, while the 14-day stochastic is at 29.83% with the period’s ATR at 1.07. The stock’s 9-day MACD Oscillator is pointing at -0.12 and -1.33 on the 14-day charts.
Analyst Ratings
In the most recent analyst report for Southwest Airlines Co. (NYSE: LUV), Redburn downgraded it to a Sell rating. They previously had a Neutral rating on the stock. Analysts offering their rating for LUV stock have a consensus rating for the stock as Hold. Currently, 2 brokerage advisors rate LUV as a “sell,”, while 13 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 1 rates the stock as overweight while 5 have offered a “buy” rating.
What is LUV’s price target for the next 12 months?
Analysts have a consensus price target ranging from a low of $25.00 and a high of $55.00, with their median price target at $36.50. Looking at these predictions, the average price target given by analysts is for Southwest Airlines Co. (LUV) stock is $36.83.
