Southwest Airlines (NYSE:LUV) Stock Price Expected to Rise, The Goldman Sachs Group Analyst Says

Southwest Airlines (NYSE:LUV) had its price target boosted by investment analysts at The Goldman Sachs Group from $26.00 to $29.00 in a note issued to investors on Tuesday,Benzinga reports. The brokerage currently has a “sell” rating on the airline’s stock. The Goldman Sachs Group’s price target indicates a potential downside of 33.43% from the stock’s current price.

Several other equities research analysts have also commented on LUV. Barclays raised shares of Southwest Airlines from an “equal weight” rating to an “overweight” rating and upped their price target for the company from $34.00 to $56.00 in a research report on Tuesday, December 16th. Bank of America increased their price target on shares of Southwest Airlines from $28.00 to $37.00 and gave the stock an “underperform” rating in a research report on Tuesday, January 6th. BNP Paribas Exane lifted their price target on shares of Southwest Airlines from $19.00 to $24.00 and gave the stock an “underperform” rating in a research note on Monday, December 8th. Evercore ISI upped their price objective on Southwest Airlines from $34.00 to $35.00 and gave the stock an “in-line” rating in a research note on Monday, September 29th. Finally, Susquehanna raised their target price on Southwest Airlines from $35.00 to $45.00 and gave the stock a “neutral” rating in a report on Friday. Six investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat, Southwest Airlines presently has a consensus rating of “Hold” and an average price target of $41.42.

Southwest Airlines Stock Performance

NYSE LUV traded down $0.29 during trading hours on Tuesday, hitting $43.56. The company’s stock had a trading volume of 3,017,903 shares, compared to its average volume of 8,011,456. Southwest Airlines has a 12 month low of $23.82 and a 12 month high of $45.02. The company’s 50 day simple moving average is $37.59 and its two-hundred day simple moving average is $34.36. The company has a debt-to-equity ratio of 0.52, a current ratio of 0.49 and a quick ratio of 0.42. The company has a market cap of $22.53 billion, a P/E ratio of 67.00, a price-to-earnings-growth ratio of 0.27 and a beta of 1.16.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings results on Tuesday, February 6th. The airline reported ($0.38) earnings per share (EPS) for the quarter. The company had revenue of $6.17 billion for the quarter. Southwest Airlines had a net margin of 1.38% and a return on equity of 6.39%. As a group, sell-side analysts expect that Southwest Airlines will post 1.55 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Norden Group LLC raised its position in shares of Southwest Airlines by 1.7% during the fourth quarter. Norden Group LLC now owns 30,052 shares of the airline’s stock valued at $1,242,000 after buying an additional 499 shares during the last quarter. LVM Capital Management Ltd. MI purchased a new position in Southwest Airlines during the fourth quarter valued at $478,000. Czech National Bank increased its holdings in Southwest Airlines by 2.3% in the 4th quarter. Czech National Bank now owns 136,366 shares of the airline’s stock valued at $5,636,000 after acquiring an additional 3,020 shares during the last quarter. First Heartland Consultants Inc. bought a new stake in Southwest Airlines in the 4th quarter valued at $207,000. Finally, SG Americas Securities LLC lifted its stake in Southwest Airlines by 2,468.4% in the 4th quarter. SG Americas Securities LLC now owns 3,752,352 shares of the airline’s stock worth $155,085,000 after purchasing an additional 3,606,255 shares in the last quarter. 80.82% of the stock is owned by hedge funds and other institutional investors.

About Southwest Airlines

Southwest Airlines Co is a U.S.-based low-cost carrier that operates a point-to-point domestic and near-international airline network. Headquartered in Dallas, Texas, the company primarily flies Boeing 737 aircraft and offers no-frills, single-class service designed to keep fares competitive. Southwest’s operating model emphasizes high aircraft utilization, quick turnaround times and an open seating policy, allowing customers to board and select seats on a first-come, first-served basis.

Founded in 1967 by Herb Kelleher and Rollin King as Air Southwest Company, Southwest began commercial service in 1971, initially connecting Dallas, Houston and San Antonio.