why Southwest Airlines Co. [LUV] is a Good Choice for Investors After New Price Target of $53.40

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Southwest Airlines Co. [NYSE: LUV] closed the trading session at $42.78 on 03/21/22. The day’s price range saw the stock hit a low of $42.26, while the highest price level was $43.16. The company report on March 16, 2022 that SOUTHWEST AIRLINES ANNOUNCES NEW EXECUTIVES AND LEADERSHIP PROMOTIONS.


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Southwest Airlines Co. (NYSE: LUV) today announced several Leadership promotions and new Executives.

Southwest® welcomes onboard Christa Lucas as Vice President Governmental Affairs. Lucas joins Southwest from the National Business Aviation Association, where she was Senior Vice President and led its government affairs, policy, and advocacy efforts. She will report to Senior Vice President Governmental Affairs & Real Estate Jason Van Eaton and will lead the Team responsible for developing and implementing Southwest’s outreach to the U.S. Congress, the federal administration, state and local governments, and the aviation community. Prior to the National Business Aviation Association, Lucas held senior-level positions at the U.S. Department of Transportation and the Federal Aviation Administration. Her background includes oversight of a broad portfolio covering domestic and global aviation and international trade. Additionally, she worked to advance airport and aviation policies and priorities with Congress and industry stakeholders. Lucas received her bachelor’s degree from Franklin and Marshall College and her master’s degree in public policy from the George Washington University.

The stocks have a year to date performance of -0.14 percent and weekly performance of 6.68 percent. The stock has been moved at -13.72 percent over the last six months. The stock has performed -7.76 percent around the most recent 30 days and changed 7.87 percent over the most recent 3-months.

If compared to the average trading volume of 8.54M shares, LUV reached to a volume of 6183165 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 $53.40 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 2.10. 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.

Evercore ISI have made an estimate for Southwest Airlines Co. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on March 03, 2022. While these analysts kept the previous recommendation, Wolfe Research raised their target price to Peer Perform. The new note on the price target was released on February 15, 2022, representing the official price target for Southwest Airlines Co. stock. Previously, the target price had yet another drop from $52 to $50, while Susquehanna kept a Neutral rating on LUV stock.

The Average True Range (ATR) for Southwest Airlines Co. is set at 1.86, with the Price to Sales ratio for LUV stock in the period of the last 12 months amounting to 1.59. The Price to Book ratio for the last quarter was 2.44, with the Price to Cash per share for the same quarter was set at 26.46. Price to Free Cash Flow for LUV in the course of the last twelve months was 10.83 with Quick ratio for the last quarter at 1.90.

LUV stock trade performance evaluation

Southwest Airlines Co. [LUV] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 6.68. With this latest performance, LUV shares dropped by -7.76% in over the last four-week period, additionally sinking by -13.72% over the last 6 months – not to mention a drop of -28.05% 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 50.50, with the RSI for the last a single of trading hit 53.51, and the three-weeks RSI is set at 49.20 for Southwest Airlines Co. [LUV]. The present Moving Average for the last 50 days of trading for this stock 43.87, while it was recorded at 42.80 for the last single week of trading, and 48.08 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 -7.82 and a Gross Margin at +7.34. Southwest Airlines Co.’s Net Margin is presently recorded at +6.19.

Return on Equity for this stock inclined to 10.13, with Return on Assets sitting at 2.61.

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.

Southwest Airlines Co. [LUV]: Insider Ownership positions

There are presently around $19,721 million, or 78.20% of LUV stock, in the hands of institutional investors. The top three institutional holders of LUV stocks are: VANGUARD GROUP INC with ownership of 61,814,978, which is approximately 17.478% of the company’s market cap and around 0.20% of the total institutional ownership; PRIMECAP MANAGEMENT CO/CA/, holding 54,290,429 shares of the stock with an approximate value of $2.35 billion in LUV stocks shares; and STATE STREET CORP, currently with $1.77 billion in LUV stock with ownership of nearly 1.253% of the company’s market capitalization.

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 452 institutional holders increased their position in Southwest Airlines Co. [NYSE:LUV] by around 38,232,961 shares. Additionally, 535 investors decreased positions by around 43,971,919 shares, while 177 investors held positions by with 373,878,093 shares. The mentioned changes placed institutional holdings at 456,082,973 shares, according to the latest SEC report filing. LUV stock had 142 new institutional investments in for a total of 3,303,067 shares, while 167 institutional investors sold positions of 12,155,922 shares during the same period.

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