Cowen slashes price target on Southwest Airlines Co. [LUV] – find out why.

Southwest Airlines Co. [NYSE: LUV] surged by $0.38 during the normal trading session on Thursday and reaching a high of $49.53 during the day while it closed the day at $47.82. The company report on December 2, 2020 that Southwest Airlines Encourages Customers To Join The Global Generosity Movement By Giving Back On Giving Tuesday.

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Carrier honors the spirit of giving by donating 300,000 Rapid Rewards® Points to charitable organizations.

Southwest Airlines Co. (NYSE: LUV) celebrates Giving Tuesday by encouraging Rapid Rewards® Members to join the Company in giving back to organizations whose missions are aimed at transforming lives and championing communities across the nation through the carrier’s Points for a Purpose program. To kick-start this year’s Giving Tuesday effort, Southwest is welcoming three new organizations to its Points for a Purpose program and donating 100,000 Rapid Rewards Points to each of the new organizations: Polaris, Hispanic Heritage Foundation, and UNCF (United Negro College Fund). They are joining the carrier’s Points for a Purpose roster, which also includes the Student Conservation Association, Ronald McDonald House Charities, Team Rubicon, and Honor Flight Network.

Southwest Airlines Co. stock has also loss -0.93% of its value over the past 7 days. However, LUV stock has inclined by 23.44% in the 3 months of the year. Over the past six months meanwhile, it has gained 25.25% and lost -11.41% year-on date.

The market cap for LUV stock reached $28.55 billion, with 590.00 million shares outstanding and 588.77 million shares in the current float. Compared to the average trading volume of 10.33M shares, LUV reached a trading volume of 9819141 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say 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 $48.95 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 2.20. 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.

Cowen have made an estimate for Southwest Airlines Co. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on December 03, 2020. While these analysts kept the previous recommendation, Raymond James raised their target price from $49 to $54. The new note on the price target was released on November 30, 2020, representing the official price target for Southwest Airlines Co. stock. Previously, the target price had yet another raise to $55, while Jefferies analysts kept a Buy rating on LUV stock. On October 23, 2020, analysts increased their price target for LUV shares from 43 to 46.

The Average True Range (ATR) for Southwest Airlines Co. is set at 1.88, with the Price to Sales ratio for LUV stock in the period of the last 12 months amounting to 2.24. The Price to Book ratio for the last quarter was 2.89, with the Price to Cash per share for the same quarter was set at 24.39.

LUV stock trade performance evaluation

Southwest Airlines Co. [LUV] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.93. With this latest performance, LUV shares gained by 23.09% in over the last four-week period, additionally plugging by 25.25% over the last 6 months – not to mention a drop of -14.27% 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 65.35, with the RSI for the last a single of trading hit 65.16, and the three-weeks RSI is set at 63.06 for Southwest Airlines Co. [LUV]. The present Moving Average for the last 50 days of trading for this stock 41.59, while it was recorded at 47.32 for the last single week of trading, and 36.71 for the last 200 days.

Southwest Airlines Co. [LUV]: An insightful look at the core 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 2.00 and a Current Ratio set at 2.10.

Earnings per share (EPS) analysis for Southwest Airlines Co. [LUV] stock

With the latest financial reports released by the company, Southwest Airlines Co. posted 0.98/share EPS, while the average EPS was predicted by analysts to be reported at 1.09/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -10.10%. 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.

Southwest Airlines Co. [LUV]: Insider Ownership positions

There are presently around $20,978 million, or 75.80% 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 67,539,448, which is approximately -2.386% of the company’s market cap and around 0.25% of the total institutional ownership; VANGUARD GROUP INC, holding 52,300,653 shares of the stock with an approximate value of $2.5 billion in LUV stocks shares; and STATE STREET CORP, currently with $2.12 billion in LUV stock with ownership of nearly 1.321% of the company’s market capitalization.

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Positions in Southwest Airlines Co. stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 459 institutional holders increased their position in Southwest Airlines Co. [NYSE:LUV] by around 45,545,526 shares. Additionally, 417 investors decreased positions by around 39,236,495 shares, while 119 investors held positions by with 353,913,990 shares. The mentioned changes placed institutional holdings at 438,696,011 shares, according to the latest SEC report filing. LUV stock had 124 new institutional investments in for a total of 7,516,388 shares, while 119 institutional investors sold positions of 6,066,040 shares during the same period.

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