Southwest Airlines Co. [NYSE: LUV] gained 6.31% or 2.41 points to close at $40.59 with a heavy trading volume of 30848634 shares. It opened the trading session at $40.14, the shares rose to $40.61 and dropped to $38.70, the range by which the price of stock traded the whole day. The daily chart for LUV points out that the company has recorded -26.90% loss over the past six months. However, it is still -80.64% lower than its most recent low trading price.
If we look at the average trading volume of 21.89M shares, LUV reached to a volume of 30848634 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Southwest Airlines Co. [LUV]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for LUV shares is $38.94 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on LUV stock is a recommendation set at 2.30. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
UBS have made an estimate for Southwest Airlines Co. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on May 26, 2020. While these analysts kept the previous recommendation, Stifel raised their target price from $40 to $50. The new note on the price target was released on April 30, 2020, representing the official price target for Southwest Airlines Co. stock. Previously, the target price had yet another raise to $41, while Susquehanna analysts kept a Positive rating on LUV stock. On April 20, 2020, analysts decreased their price target for LUV shares from 45 to 40.
The Average True Range (ATR) for Southwest Airlines Co. is set at 2.37, with the Price to Sales ratio for LUV stock in the period of the last 12 months amounting to 1.11. The Price to Book ratio for the last quarter was 2.30, with the Price to Cash per share for the same quarter was set at 9.39. Price to Free Cash Flow for LUV in the course of the last twelve months was 23.24 with Quick ratio for the last quarter at 0.60.
Trading performance analysis for LUV stock
Southwest Airlines Co. [LUV] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 20.73. With this latest performance, LUV shares gained by 59.49% in over the last four-week period, additionally sinking by -26.90% over the last 6 months – not to mention a drop of -19.42% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for LUV stock in for the last two-week period is set at 73.62, with the RSI for the last a single of trading hit 82.33, and the three-weeks RSI is set at 65.55 for Southwest Airlines Co. [LUV]. The present Moving Average for the last 50 days of trading for this stock 31.00, while it was recorded at 37.59 for the last single week of trading, and 47.54 for the last 200 days.
Southwest Airlines Co. [LUV]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Southwest Airlines Co. [LUV] shares currently have an operating margin of +13.40 and a Gross Margin at +26.89. Southwest Airlines Co.’s Net Margin is presently recorded at +10.26.
Return on Total Capital for LUV is now 22.17, given the latest momentum, and Return on Invested Capital for the company is 18.16. Return on Equity for this stock inclined to 23.37, with Return on Assets sitting at 8.47. When it comes to the capital structure of this company, Southwest Airlines Co. [LUV] has a Total Debt to Total Equity ratio set at 40.64. Additionally, LUV Total Debt to Total Capital is recorded at 28.90, with Total Debt to Total Assets ending up at 14.79. Long-Term Debt to Equity for the company is recorded at 28.72, with the Long-Term Debt to Total Capital now at 20.42.
Reflecting on the efficiency of the workforce at the company, Southwest Airlines Co. [LUV] managed to generate an average of $37,829 per employee. Receivables Turnover for the company is 27.12 with a Total Asset Turnover recorded at a value of 0.83.Southwest Airlines Co.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.60 and a Current Ratio set at 0.70.
Southwest Airlines Co. [LUV]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, Southwest Airlines Co. posted 1.37/share EPS, while the average EPS was predicted by analysts to be reported at 1.34/share.When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 2.20%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for LUV. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Southwest Airlines Co. go to -9.93%.
An analysis of insider ownership at Southwest Airlines Co. [LUV]
There are presently around $16,232 million, or 73.00% of LUV stock, in the hands of institutional investors. The top three institutional holders of LUV stocks are: PRIMECAP MANAGEMENT CO/CA/ with ownership of 67,895,808, which is approximately -5.515% of the company’s market cap and around 0.30% of the total institutional ownership; BERKSHIRE HATHAWAY INC, holding 53,642,713 shares of the stock with an approximate value of $2.05 billion in LUV stocks shares; and STATE STREET CORP, currently with $1.48 billion in LUV stock with ownership of nearly 0.209% of the company’s market capitalization.
361 institutional holders increased their position in Southwest Airlines Co. [NYSE:LUV] by around 34,394,564 shares. Additionally, 534 investors decreased positions by around 54,472,026 shares, while 101 investors held positions by with 336,282,550 shares. The mentioned changes placed institutional holdings at 425,149,140 shares, according to the latest SEC report filing. LUV stock had 95 new institutional investments in for a total of 18,052,943 shares, while 193 institutional investors sold positions of 7,112,892 shares during the same period.