Shares of Southwest Airlines Co. (NYSE:LUV) have been assigned a consensus recommendation of “Hold” by seventeen analysts covering the stock. Two analysts have rated the stock as a sell, ten as hold, and five as a buy. The average one-year price target among analysts is $35.33.
Recent analyst reports have provided mixed reviews of Southwest Airlines. TD Cowen lowered their price target from $40.00 to $37.00 but maintained an “outperform” rating. The Goldman Sachs Group also lowered their target price from $34.00 to $30.00 and gave the stock a “neutral” rating. StockNews.com began coverage on the stock with a “hold” rating. Deutsche Bank Aktiengesellschaft downgraded Southwest Airlines from a “buy” to a “hold” rating, lowering their price target from $52.00 to $38.00. Sanford C. Bernstein lowered their price objective from $32.00 to $28.00 and assigned a “market perform” rating.
On Monday, Southwest Airlines stock opened at $27.08. The stock has a 50-day moving average of $30.47 and a 200-day moving average of $31.80. Its 12-month low is $26.46, and its 12-month high is $40.38. The company has a current ratio of 1.25 and a quick ratio of 1.19, with a debt-to-equity ratio of 0.74. With a market cap of $16.13 billion, Southwest Airlines has a price-to-earnings ratio of 30.77 and a beta of 1.19.
Southwest Airlines reported earnings per share of $1.09 for the most recent quarter, surpassing the consensus estimate of $1.08 by $0.01. The company had revenue of $7.04 billion for the quarter, compared to analysts’ expectations of $6.98 billion. Southwest Airlines had a return on equity of 5.81% and a net margin of 2.31%. The quarterly revenue increased by 4.6% year-over-year.
The company also declared a quarterly dividend, which was paid on September 27th. Investors of record as of September 6th were given a dividend of $0.18 per share. With a payout ratio of 81.82%, Southwest Airlines currently has a dividend yield of 2.66%.
Several institutional investors and hedge funds have recently bought and sold shares of Southwest Airlines. Fisher Asset Management LLC acquired a new position in the company, while Assetmark Inc., Ameritas Advisory Services LLC, Global Retirement Partners LLC, and Daiwa Securities Group Inc. boosted their holdings.
Overall, while Southwest Airlines currently has a “Hold” rating, investors should closely monitor analyst opinions, as well as the company’s financial performance and market trends, to make informed investment decisions.
Definitions:
Consensus recommendation: An average rating given by analysts covering a particular stock, indicating their overall sentiment towards the stock as a buy, hold, or sell.
Price target: The price level at which an analyst believes a stock will trade in the next 12 months.
Moving average: A calculated average of a stock’s price over a specific period of time, to help determine trend direction.
Current ratio: A liquidity ratio that measures a company’s ability to pay short-term obligations with its short-term assets.
Quick ratio: A liquidity ratio that measures a company’s ability to cover immediate debts with its most liquid assets.
Debt-to-equity ratio: A ratio that indicates the proportion of debt used to finance a company’s assets relative to its shareholders’ equity.
Market capitalization: The total dollar market value of a company’s outstanding shares of stock.
PE ratio: The price-to-earnings ratio is a valuation ratio that compares a company’s stock price to its earnings per share.
PEG ratio: The price/earnings to growth ratio is a valuation metric used to determine a stock’s value in relation to its growth prospects.
Beta: A measure of a stock’s volatility in relation to the market.
Return on equity: A financial ratio that measures a company’s profitability by calculating how much profit it generates with the shareholders’ equity.
Net margin: The percentage of revenue that remains as profit after subtracting all expenses.
Dividend: A payment made by a company to its shareholders, usually in the form of cash, as a share of the company’s profits.
Payout ratio: The percentage of a company’s earnings that are paid out to shareholders as dividends.
Institutional investors: Organizations that pool large sums of money and invest those funds in various financial instruments, such as stocks, bonds, and real estate.
Hedge funds: Investment partnerships that pool capital from accredited individuals or institutional investors and invest in a variety of assets, often using complex strategies and techniques.
Sources: MarketBeat.com, Yahoo Finance
