Southwest Airlines Co. [LUV] is 13.30% higher this YTD. Is it still time to buy?

Southwest Airlines Co. [NYSE: LUV] gained 1.66% or 0.86 points to close at $52.81 with a heavy trading volume of 6334633 shares. The company report on February 17, 2021 that Southwest Airlines Launches One Million Acts Of Kindness Challenge To Celebrate 50 Years Of Heart In Action.

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Airline invites Customers, Employees, and partners to inspire a kinder world by participating in its Acts of Kindness campaign.

Southwest Airlines Co. (NYSE: LUV) is engaging its Customers, Employees, and partners to complete a collective one million Acts of Kindness throughout its 50th Anniversary year, celebrating half a century of empowering People and communities to lead with Heart and kindness.

It opened the trading session at $52.23, the shares rose to $53.84 and dropped to $52.10, the range by which the price of stock traded the whole day. The daily chart for LUV points out that the company has recorded 54.10% gains over the past six months. However, it is still -135.02% lower than its most recent low trading price.

If we look at the average trading volume of 7.40M shares, LUV reached to a volume of 6334633 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 $56.26 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.

Deutsche Bank have made an estimate for Southwest Airlines Co. shares, keeping their opinion on the stock as Hold, with their previous recommendation back on December 11, 2020. The new note on the price target was released on December 07, 2020, representing the official price target for Southwest Airlines Co. stock. Previously, the target price had yet another raise from $46 to $55, while Cowen kept a Outperform rating on LUV stock. On November 30, 2020, analysts increased their price target for LUV shares from 49 to 54.

The Average True Range (ATR) for Southwest Airlines Co. is set at 1.52, with the Price to Sales ratio for LUV stock in the period of the last 12 months amounting to 3.39. The Price to Book ratio for the last quarter was 3.52, with the Price to Cash per share for the same quarter was set at 22.95.

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 2.70. With this latest performance, LUV shares gained by 9.54% in over the last four-week period, additionally plugging by 54.10% over the last 6 months – not to mention a drop of -7.25% 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 67.98, with the RSI for the last a single of trading hit 72.24, and the three-weeks RSI is set at 64.91 for Southwest Airlines Co. [LUV]. The present Moving Average for the last 50 days of trading for this stock 47.46, while it was recorded at 52.10 for the last single week of trading, and 39.45 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 -52.09 and a Gross Margin at -30.80. Southwest Airlines Co.’s Net Margin is presently recorded at -33.97.

Return on Total Capital for LUV is now -27.01, given the latest momentum, and Return on Invested Capital for the company is -18.52. Return on Equity for this stock declined to -32.86, with Return on Assets sitting at -9.67. When it comes to the capital structure of this company, Southwest Airlines Co. [LUV] has a Total Debt to Total Equity ratio set at 137.44. Additionally, LUV Total Debt to Total Capital is recorded at 57.88, with Total Debt to Total Assets ending up at 33.36. Long-Term Debt to Equity for the company is recorded at 131.51, with the Long-Term Debt to Total Capital now at 55.39.

Reflecting on the efficiency of the workforce at the company, Southwest Airlines Co. [LUV] managed to generate an average of -$54,407 per employee. Receivables Turnover for the company is 8.17 with a Total Asset Turnover recorded at a value of 0.28.Southwest Airlines Co.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.00 and a Current Ratio set at 2.00.

Southwest Airlines Co. [LUV]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Southwest Airlines Co. posted -0.15/share EPS, while the average EPS was predicted by analysts to be reported at -0.41/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 63.40%. 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.

An analysis of insider ownership at Southwest Airlines Co. [LUV]

There are presently around $23,587 million, or 78.60% 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 65,213,818, which is approximately -3.443% of the company’s market cap and around 0.30% of the total institutional ownership; VANGUARD GROUP INC, holding 51,587,663 shares of the stock with an approximate value of $2.72 billion in LUV stocks shares; and STATE STREET CORP, currently with $2.27 billion in LUV stock with ownership of nearly -3.244% 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 January and at the time of the January reporting period, where 585 institutional holders increased their position in Southwest Airlines Co. [NYSE:LUV] by around 53,205,191 shares. Additionally, 368 investors decreased positions by around 43,200,357 shares, while 120 investors held positions by with 350,231,846 shares. The mentioned changes placed institutional holdings at 446,637,394 shares, according to the latest SEC report filing. LUV stock had 206 new institutional investments in for a total of 7,831,188 shares, while 73 institutional investors sold positions of 6,373,889 shares during the same period.

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