As of Wednesday close, Southwest Airlines Co.’s (NYSE:LUV) stock was down -$0.2, moving down -0.60 percent to $32.92. The average number of shares traded per day over the past five days has been 5,421,880 shares. 1 time new highs have been achieved over the past 5 days, with a -$0.71 fall in that time frame. In the last twenty days, the average volume was 9,205,985, while in the previous 50 days, it was 8,196,508.
Since last month, LUV stock retreated -10.40%. Shares of the company fell to $32.15 on 08/03/23, the lowest level in the past month. A 52-week high of $40.38 was reached on 07/12/23 after having rallying from a 52-week low of $28.40. Since the beginning of this year, LUV’s stock price has dropped by -2.23% or -$0.75, and marked a new high 12 times. However, the stock has declined by -18.47% since its 52-week high.
LUV stock investors should be aware that Southwest Airlines Co. (LUV) stock had its last reported insider trading activity 107 days ago on May 02. Green Ryan C., the EVP, Chief Commercial Officer of the company, disposed of 4,936 shares for $29.94 on May 02. It resulted in a $147,787 divestment by the insider. MONTFORD JOHN T sold 2,250 shares at an average price of $38.87 on Nov 10. The insider now owns 21,046 shares following the transaction.
Valuation Metrics
Right now, Southwest Airlines Co. (LUV) has a P/E ratio of about 38.10. The stock’s beta is 1.16. Besides these, the trailing price-to-sales (P/S) ratio of 0.78, the price-to-book (PB) ratio of 1.82.
The latest dividend of $0.18 per share was paid out, remained unchanged from last year’s $0.18. On Thursday May 16 2019, a $0.02 dividend increase was announced.
Financial Health
In the three months ended June 29, Southwest Airlines Co.’s quick ratio stood at 1.20, while its current ratio was 1.30, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 0.74, and the total debt-to-equity ratio was 0.74. On the profitability front, the trailing twelve-month gross margin is 68.50% percent. In the year ended June 29, EBITDA margin amounted to 6.45%, whereas operating margins totaled 1.80%. Based on annual data, LUV earned $6.1 billion in gross profit and brought in $23.81 billion in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 3.40%. Return on equity (ROE) for the past 12 months was 5.40%.
In Southwest Airlines Co.’s quarter-end financial report for June 29, it reported total debt of $7.99 billion against cash and short-term investments of $3.02 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. LUV’s revenue rose 4.39% to $5.71 billion during the quarter, while net income inched up to $7.04 billion. While analysts expected Southwest Airlines Co. to report $1.1 quarterly earnings, the actual figure was $1.09 per share, beating the consensus estimate by -0.90%. During the quarter, the company generated $1.16 billion in EBITDA. The liabilities of Southwest Airlines Co. were 25.73 billion at the end of its most recent quarter ended June 29, and its total debt was $9.33 billion. The value of shareholders’ equity is $595.63 million.
Technical Picture
This quick technical analysis looks at Southwest Airlines Co.’s (LUV) price momentum. With a historical volatility rate of 16.88%, the RSI 9-day stood at 36.75% on 16 August.
With respect to its five-day moving average, the current Southwest Airlines Co. price is down by -2.11% percent or -$0.71. At present, LUV shares trade -11.86% below its 20-day simple moving average and +11.14% percent above its 100-day simple moving average. However, the stock is currently trading approximately +9.73% above its SMA50 and -6.72% below its SMA200.
Stochastic coefficient K was 35.63% and Stochastic coefficient D was 35.48%, while ATR was 0.86. Given the Stochastic reading of 32.84% for the 14-day period, the RSI (14) reading has been calculated as 40.43%. As of today, the MACD Oscillator reading stands at -0.16, while the 14-day reading stands at -0.17.
Analyst Ratings
Southwest Airlines Co. downgraded its rating on Southwest Airlines Co. (NYSE: LUV) to a Sell in a note to investors on August 07, 2023. The analysts firm previously had a Neutral rating on the stock.Southwest Airlines Co. (LUV) has been rated Hold by analysts. According to 2 brokerage firms, LUV is a sell, and 13 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 1 analyst rate Southwest Airlines Co. stock as buy, with 5 recommending it as overweight.
With a median target price of $36.50, the current consensus forecast for the stock is $25.00 – $55.00. Based on these forecasts, analysts predict Southwest Airlines Co. (LUV) will achieve an average price target of $36.83.
