Southwest Airlines Co. [LUV] Stock trading around $44.96 per share: What’s Next?


Southwest Airlines Co. [NYSE: LUV] loss -4.32% on the last trading session, reaching $44.96 price per share at the time. The company report on November 23, 2021 that Southwest Airlines Commits $10 Million To Yale University To Support Climate Change Initiatives.

The pledge funds research and technological advancements aimed at reducing net greenhouse gas emissions.

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Southwest Airlines Co. (NYSE: LUV) announced a $10 million commitment to Yale University’s Center for Natural Carbon Capture (YCNCC) to research technological advancements and find new solutions to reduce net greenhouse gas emissions. The pledge will also support research and educational efforts at the Yale School of the Environment to explore the current state of sustainability, strategy, policy, and economics, emphasizing trends related to the aviation industry and focusing on finding new ways to reduce atmospheric carbon.

Southwest Airlines Co. represents 592.00 million in outstanding shares, while the company has a total market value of $26.35 billion with the latest information. LUV stock price has been found in the range of $43.81 to $45.48.

If compared to the average trading volume of 7.08M shares, LUV reached a trading volume of 11541950 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 $62.73 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.

Wolfe Research have made an estimate for Southwest Airlines Co. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on November 19, 2021. While these analysts kept the previous recommendation, Goldman dropped their target price from $63 to $59. The new note on the price target was released on November 16, 2021, representing the official price target for Southwest Airlines Co. stock. Previously, the target price had yet another drop from $65 to $60, while UBS kept a Buy rating on LUV stock. On October 22, 2021, analysts decreased their price target for LUV shares from 60 to 56.

The Average True Range (ATR) for Southwest Airlines Co. is set at 1.36, with the Price to Sales ratio for LUV stock in the period of the last 12 months amounting to 2.07. The Price to Book ratio for the last quarter was 2.60, with the Price to Cash per share for the same quarter was set at 27.31. Price to Free Cash Flow for LUV in the course of the last twelve months was 19.01 with Quick ratio for the last quarter at 2.00.

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 -3.04. With this latest performance, LUV shares dropped by -3.46% in over the last four-week period, additionally sinking by -26.85% over the last 6 months – not to mention a drop of -6.86% 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 34.13, with the RSI for the last a single of trading hit 29.34, and the three-weeks RSI is set at 37.35 for Southwest Airlines Co. [LUV]. The present Moving Average for the last 50 days of trading for this stock 50.00, while it was recorded at 46.70 for the last single week of trading, and 54.57 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 -1.99/share EPS, while the average EPS was predicted by analysts to be reported at -2.35/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 15.30%. 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.

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

There are presently around $20,754 million, or 79.10% 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 55,956,764, which is approximately -0.982% of the company’s market cap and around 0.10% of the total institutional ownership; VANGUARD GROUP INC, holding 52,618,218 shares of the stock with an approximate value of $2.37 billion in LUV stocks shares; and STATE STREET CORP, currently with $1.81 billion in LUV stock with ownership of nearly -1.102% of the company’s market capitalization.

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 488 institutional holders increased their position in Southwest Airlines Co. [NYSE:LUV] by around 37,200,648 shares. Additionally, 435 investors decreased positions by around 38,815,397 shares, while 200 investors held positions by with 385,602,691 shares. The mentioned changes placed institutional holdings at 461,618,736 shares, according to the latest SEC report filing. LUV stock had 115 new institutional investments in for a total of 2,689,613 shares, while 91 institutional investors sold positions of 10,154,708 shares during the same period.