Southwest Airlines (NYSE:LUV) Downgraded by StockNews.com

StockNews.com cut shares of Southwest Airlines (NYSE:LUV) from a hold rating to a sell rating in a research note issued to investors on Friday.

Several other analysts have also commented on LUV. Susquehanna cut their target price on shares of Southwest Airlines from $30.00 to $27.00 and set a neutral rating for the company in a research note on Tuesday, April 9th. Jefferies Financial Group upgraded Southwest Airlines from an underperform rating to a hold rating and increased their price objective for the company from $20.00 to $28.00 in a research report on Wednesday, March 13th. Argus upgraded Southwest Airlines from a hold rating to a buy rating and set a $40.00 target price on the stock in a report on Tuesday, March 12th. Barclays reduced their target price on Southwest Airlines from $32.00 to $30.00 and set an equal weight rating for the company in a report on Friday, April 5th. Finally, UBS Group began coverage on Southwest Airlines in a research note on Wednesday, March 20th. They issued a buy rating and a $36.00 price target on the stock. Four analysts have rated the stock with a sell rating, nine have issued a hold rating and five have issued a buy rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of Hold and a consensus price target of $31.82.

Southwest Airlines Price Performance

NYSE LUV opened at $27.84 on Friday. The firm has a market capitalization of $16.66 billion, a PE ratio of 37.12, a P/E/G ratio of 0.99 and a beta of 1.15. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.14 and a quick ratio of 1.07. Southwest Airlines has a 12 month low of $21.91 and a 12 month high of $39.53. The company’s 50 day simple moving average is $31.06 and its 200 day simple moving average is $28.45.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings data on Thursday, January 25th. The airline reported $0.37 earnings per share for the quarter, beating the consensus estimate of $0.12 by $0.25. The business had revenue of $6.82 billion during the quarter, compared to analyst estimates of $6.75 billion. Southwest Airlines had a return on equity of 9.40% and a net margin of 1.91%. The company’s revenue was up 10.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.38) earnings per share. As a group, equities research analysts forecast that Southwest Airlines will post 1.52 EPS for the current fiscal year.

Southwest Airlines Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, March 27th. Investors of record on Wednesday, March 6th were issued a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 2.59%. The ex-dividend date of this dividend was Tuesday, March 5th. Southwest Airlines’s dividend payout ratio is currently 96.00%.

Institutional Trading of Southwest Airlines

Several large investors have recently added to or reduced their stakes in the company. Samalin Investment Counsel LLC boosted its holdings in shares of Southwest Airlines by 247.5% in the 1st quarter. Samalin Investment Counsel LLC now owns 702 shares of the airline’s stock worth $32,000 after acquiring an additional 500 shares in the last quarter. Hexagon Capital Partners LLC raised its position in Southwest Airlines by 374.0% in the 4th quarter. Hexagon Capital Partners LLC now owns 858 shares of the airline’s stock valued at $25,000 after purchasing an additional 677 shares during the last quarter. Quarry LP acquired a new position in Southwest Airlines in the fourth quarter worth $26,000. Capital Advisors Ltd. LLC grew its holdings in shares of Southwest Airlines by 82.8% during the fourth quarter. Capital Advisors Ltd. LLC now owns 914 shares of the airline’s stock worth $26,000 after purchasing an additional 414 shares during the last quarter. Finally, First Horizon Advisors Inc. acquired a new stake in shares of Southwest Airlines in the fourth quarter valued at $29,000. 80.82% of the stock is owned by institutional investors.

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.