The stock of Southwest Airlines Co. (NYSE:LUV) decreased by -$0.13 on Monday to finish at $31.09, down -0.42 percent. The last five days have seen an average of 5,040,060 shares of common stock traded. 12 times new highs were reached in the current year, with a fall of -$2.58. The average number of shares traded over the last 20 days was 6,526,510, while the average volume over the last 50 days totaled 7,822,112.
LUV stock dropped -7.74% since last month. On 08/25/23, the company’s shares reached a one-month low of $30.86. The stock touched a high of $40.38 on 07/12/23, after rallying from a low of $28.40 in 52 weeks. The price of LUV stock has declined by -7.66% or -$2.58 this year, reaching a new high 12 times. Still, the stock price is down -23.01% from the 52-week high.
Insider Transactions
LUV stock investors should be aware that Southwest Airlines Co. (LUV) stock had its last reported insider trading activity 119 days ago on May 02. On May 02, EVP, Chief Commercial Officer Green Ryan C. sold 4,936 shares at $29.94 each. This transaction resulted in the insider making $147,787. On Nov 10, MONTFORD JOHN T sold 2,250 shares at a price of US$38.87. After the transaction, the insider now owns 21,046 shares.
Valuation Metrics
Southwest Airlines Co. (LUV) has a trailing price-to-earnings (P/E) ratio of 35.98. Beta for the stock is 1.17. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 0.74, the price-to-book (PB) ratio of 1.71.
Company paid $0.18 per share in dividends, remained unchanged from $0.18 last year. A $0.02 dividend increase was reported on Thursday May 16 2019.
Financial Health
For the three months ended June 29, Southwest Airlines Co.’s quick ratio was 1.20, while its current ratio was 1.30, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 0.74, and the total debt to equity ratio is 0.74. As far as profitability goes, gross margin for the trailing twelve months is 68.50% percent. Southwest Airlines Co.’s EBITDA margin for the year ended June 29 was 6.45%, whereas its operating margin stood at 1.80% for the same period. Based on annual data, it had gross profit of $6.1 billion and revenue of $23.81 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. LUV’s return on assets (ROA) during the last 12 months has been 1.60%. There was a 3.40% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 5.40%.
Earnings Surprise
According to Southwest Airlines Co.’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $7.04 billion, while revenues rose by 4.39% to $5.71 billion. It was predicted that Southwest Airlines Co.’s quarterly earnings would be $1.09, but it ended up being $1.1, beating the consensus by -0.90%. EBITDA was $1.16 billion for the quarter. At the end of Southwest Airlines Co.’s most recent quarter ended June 29, its liabilities totaled 25.73 billion, while its total debt was $9.33 billion. Equity owned by shareholders amounts to $595.63 million.
Technical Picture
Here’s a quick look at Southwest Airlines Co.’s (LUV) price momentum from a technical perspective. As of 28 August, the RSI 9-day stood at 22.75%, suggesting the stock is oversold, with a 9.20% historical volatility rate.
The stochastic %K and %D were 8.67% and 7.91% respectively, while the average true range (ATR) was 0.72. Based on the 14-day stochastic reading of 6.89%, the RSI (14) reading is 30.67%. On the 9-day MACD Oscillator, the stock is at -0.58, and the 14-day reading is at -1.23.
Analyst Ratings
Southwest Airlines Co. (NYSE: LUV) was downgraded by Redburn to a a Sell rating in its latest research report. The stock was previously rated as a a Neutral. Analysts have assigned Southwest Airlines Co. (LUV) an Hold rating. LUV is a stock that is recommended for selling by 2 brokerage firms, while 13 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 1 rate it overweight and 5 others recommend it as a buy.
What is LUV’s price target for the next 12 months?
The current consensus forecast for the stock is between $25.00 and $55.00, with a median target price of $36.50. In analyzing these forecasts, the average price target given by analysts for Southwest Airlines Co. (LUV) is $36.39.
