Market Analysts see Southwest Airlines Co. [LUV] gaining to $74. Time to buy?

Southwest Airlines Co. [NYSE: LUV] loss -2.00% on the last trading session, reaching $50.52 price per share at the time. The company report on July 26, 2021 that Southwest Airlines Joins Sabre Providing Industry-Standard Level Of Access To Carrier’s Low Fares And Network As It Welcomes Business Travelers Back To The Sky.

Southwest Airlines now offers its everyday low-fares within all three major global distribution systems including Sabre, Travelport, and Amadeus.

Southwest Airlines Co. (NYSE: LUV) (“Company”) began offering flights for sale within Sabre’s global distribution system (GDS), the leading corporate booking channel in the US. With a rollout of the partnership now complete, Southwest Airlines® for the first time in Company history offers an ability for business travelers and travel decision makers to book Southwest and its everyday low fares at an industry-standard level of participation within all three major GDSs.

Southwest Airlines Co. represents 591.00 million in outstanding shares, while the company has a total market value of $30.50 billion with the latest information. LUV stock price has been found in the range of $50.38 to $51.76.

If compared to the average trading volume of 6.81M shares, LUV reached a trading volume of 6523286 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 $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 1.48, with the Price to Sales ratio for LUV stock in the period of the last 12 months amounting to 3.09. The Price to Book ratio for the last quarter was 3.08, with the Price to Cash per share for the same quarter was set at 27.95. Price to Free Cash Flow for LUV in the course of the last twelve months was 48.11 with Quick ratio for the last quarter at 1.50.

Trading performance analysis for LUV stock

Southwest Airlines Co. [LUV] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.36. With this latest performance, LUV shares dropped by -4.84% in over the last four-week period, additionally plugging by 14.97% over the last 6 months – not to mention a rise of 63.18% 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 41.40, with the RSI for the last a single of trading hit 42.01, and the three-weeks RSI is set at 40.91 for Southwest Airlines Co. [LUV]. The present Moving Average for the last 50 days of trading for this stock 55.16, while it was recorded at 51.35 for the last single week of trading, and 52.66 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 1.50 and a Current Ratio set at 1.50.

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

There are presently around $23,400 million, or 80.00% 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 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 $2.62 billion in LUV stocks shares; and STATE STREET CORP, currently with $2.08 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 July and at the time of the July reporting period, where 501 institutional holders increased their position in Southwest Airlines Co. [NYSE:LUV] by around 47,324,716 shares. Additionally, 466 investors decreased positions by around 31,752,876 shares, while 187 investors held positions by with 384,105,590 shares. The mentioned changes placed institutional holdings at 463,183,182 shares, according to the latest SEC report filing. LUV stock had 152 new institutional investments in for a total of 6,037,860 shares, while 99 institutional investors sold positions of 3,085,375 shares during the same period.

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