Southwest Airlines Co. [LUV] is -32.60% lower this YTD. Is it still time to buy?

Southwest Airlines Co. [NYSE: LUV] price plunged by -1.83 percent to reach at -$0.68. The company report on August 25, 2020 that Southwest Airlines Announces Three-Day $39 WOW Sale For Your Next Adventure.

Put your Heart back into travel with fares starting as low as $39 one-way across the United States.

Southwest Airlines Co. (NYSE: LUV) launched a three-day WOW Sale today through Aug. 27, 2020, 11:59 p.m. Central Daylight Time, with fares starting as low as $39 one-way. As Customers put their Hearts back into traveling, Southwest is offering low fares across the United States. Fall and winter travel is only a click away!.

A sum of 7866069 shares traded at recent session while its average daily volume was at 18.65M shares. Southwest Airlines Co. shares reached a high of $37.07 and dropped to a low of $36.325 until finishing in the latest session at $36.38.

The one-year LUV stock forecast points to a potential upside of 12.34. The average equity rating for LUV stock is currently 2.30, trading closer to a bullish pattern in the stock market.

Guru’s Opinion on 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 $41.50 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.

Wolfe Research have made an estimate for Southwest Airlines Co. shares, keeping their opinion on the stock as Peer Perform, with their previous recommendation back on July 13, 2020. While these analysts kept the previous recommendation, Goldman raised their target price from $35 to $47. The new note on the price target was released on June 29, 2020, representing the official price target for Southwest Airlines Co. stock. Previously, the target price had yet another raise to $44, while Seaport Global Securities analysts kept a Buy rating on LUV stock.

The Average True Range (ATR) for Southwest Airlines Co. is set at 1.27, with the Price to Sales ratio for LUV stock in the period of the last 12 months amounting to 1.28. The Price to Book ratio for the last quarter was 1.88, with the Price to Cash per share for the same quarter was set at 24.67. Price to Free Cash Flow for LUV in the course of the last twelve months was 18.08 with Quick ratio for the last quarter at 1.70.

LUV Stock Performance Analysis:

Southwest Airlines Co. [LUV] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 6.16. With this latest performance, LUV shares gained by 12.67% in over the last four-week period, additionally sinking by -21.98% over the last 6 months – not to mention a drop of -27.95% 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 61.65, with the RSI for the last a single of trading hit 66.22, and the three-weeks RSI is set at 58.48 for Southwest Airlines Co. [LUV]. The present Moving Average for the last 50 days of trading for this stock 33.72, while it was recorded at 35.90 for the last single week of trading, and 41.88 for the last 200 days.

Insight into Southwest Airlines Co. Fundamentals:

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 1.70 and a Current Ratio set at 1.70.

LUV Stock EPS

With the latest financial reports released by the company, Southwest Airlines Co. posted 1.23/share EPS, while the average EPS was predicted by analysts to be reported at 1.08/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 13.90%. 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 -7.94%.

Southwest Airlines Co. [LUV] Insider Position Details

There are presently around $15,732 million, or 74.20% 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 69,190,098, which is approximately 1.906% of the company’s market cap and around 0.30% of the total institutional ownership; STATE STREET CORP, holding 43,752,940 shares of the stock with an approximate value of $1.59 billion in LUV stocks shares; and VANGUARD GROUP INC, currently with $1.53 billion in LUV stock with ownership of nearly 16.566% of the company’s market capitalization.

Positions in Southwest Airlines Co. stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 561 institutional holders increased their position in Southwest Airlines Co. [NYSE:LUV] by around 105,720,441 shares. Additionally, 358 investors decreased positions by around 98,262,174 shares, while 86 investors held positions by with 228,454,242 shares. The mentioned changes placed institutional holdings at 432,436,857 shares, according to the latest SEC report filing. LUV stock had 213 new institutional investments in for a total of 23,274,961 shares, while 123 institutional investors sold positions of 70,855,562 shares during the same period.

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