Southwest Airlines Co. [LUV] moved down -0.96: Why It’s Important

Southwest Airlines Co. [NYSE: LUV] closed the trading session at $54.66 on 06/24/21. The day’s price range saw the stock hit a low of $54.62, while the highest price level was $55.62. The company report on June 23, 2021 that Southwest Announces 2022 Executive Leadership Plans.

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, Southwest Airlines Co. (NYSE: LUV) announced that Chairman and CEO Gary Kelly will transition roles in early 2022, becoming the carrier’s Executive Chairman with the desire to serve in that role through at least 2026 at the discretion of the Board of Directors. Executive Vice President Corporate Services Robert Jordan will become Kelly’s successor as CEO effective Feb. 1, 2022. Jordan also will join the Board at that time.

“On behalf of the Southwest Airlines Board of Directors, I am delighted to announce Bob Jordan as CEO,” Kelly said. “Bob and I have worked side by side for more than 30 years. He is a gifted and experienced executive and well-prepared to take on this important role. Working closely with President Tom Nealon and Chief Operating Officer Mike Van de Ven, we will begin developing transition plans in the coming weeks and months. These three top-notch Leaders make for a powerful team to lead us forward.”.

The stocks have a year to date performance of 17.27 percent and weekly performance of -1.64 percent. The stock has been moved at 20.61 percent over the last six months. The stock has performed -9.73 percent around the most recent 30 days and changed -8.76 percent over the most recent 3-months.

If compared to the average trading volume of 5.79M shares, LUV reached to a volume of 8075891 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 $69.98 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 2.00. 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.

MKM Partners have made an estimate for Southwest Airlines Co. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on June 10, 2021. While these analysts kept the previous recommendation, JP Morgan raised their target price from $44 to $66. The new note on the price target was released on April 14, 2021, representing the official price target for Southwest Airlines Co. stock. Previously, the target price had yet another raise to $68, while Argus analysts kept a Buy rating on LUV stock.

The Average True Range (ATR) for Southwest Airlines Co. is set at 1.22, with the Price to Sales ratio for LUV stock in the period of the last 12 months amounting to 4.74. The Price to Book ratio for the last quarter was 3.55, with the Price to Cash per share for the same quarter was set at 24.10.

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 -1.64. With this latest performance, LUV shares dropped by -9.73% in over the last four-week period, additionally plugging by 20.61% over the last 6 months – not to mention a rise of 69.49% 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 30.13, with the RSI for the last a single of trading hit 25.57, and the three-weeks RSI is set at 34.84 for Southwest Airlines Co. [LUV]. The present Moving Average for the last 50 days of trading for this stock 59.89, while it was recorded at 55.42 for the last single week of trading, and 51.01 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 -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 1.90 and a Current Ratio set at 2.00.

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

With the latest financial reports released by the company, Southwest Airlines Co. posted -2.67/share EPS, while the average EPS was predicted by analysts to be reported at -2.66/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -0.40%. 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.

Southwest Airlines Co. [LUV]: Insider Ownership positions

There are presently around $25,426 million, or 80.30% 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 58,976,270, which is approximately -9.565% of the company’s market cap and around 0.30% of the total institutional ownership; VANGUARD GROUP INC, holding 51,951,706 shares of the stock with an approximate value of $2.84 billion in LUV stocks shares; and STATE STREET CORP, currently with $2.25 billion in LUV stock with ownership of nearly -4.051% 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 April and at the time of the April reporting period, where 511 institutional holders increased their position in Southwest Airlines Co. [NYSE:LUV] by around 48,959,322 shares. Additionally, 488 investors decreased positions by around 33,300,603 shares, while 180 investors held positions by with 382,905,285 shares. The mentioned changes placed institutional holdings at 465,165,210 shares, according to the latest SEC report filing. LUV stock had 170 new institutional investments in for a total of 6,613,797 shares, while 115 institutional investors sold positions of 3,170,575 shares during the same period.

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