why Southwest Airlines Co. [LUV] is a Good Choice for Investors After New Price Target of $56.20

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Southwest Airlines Co. [NYSE: LUV] closed the trading session at $44.59 on 05/10/22. The day’s price range saw the stock hit a low of $43.68, while the highest price level was $45.42. The company report on May 3, 2022 that EIGHT YEARS AND COUNTING! SOUTHWEST AIRLINES RAPID REWARDS VOTED PROGRAM OF THE YEAR AT ANNUAL FREDDIE AWARDS.

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Carrier’s Rapid Rewards voted Program of the Year, Best Customer Service, and Best Loyalty Credit Card at 2022 Annual Freddie Awards.

Southwest Airlines Co. (NYSE: LUV) Rapid Rewards® frequent flyer program held onto the distinction of Program of the Year for the eighth time in consumer-selected InsiderFlyer’s 2022 Freddie Awards. The carrier’s Rapid Rewards program also was named Best Customer Service for the 14th year, and voters once again recognized the Southwest® Rapid Rewards® Premier Credit Card by Chase as Best Loyalty Credit Card for the 8th year.

The stocks have a year to date performance of 4.08 percent and weekly performance of -5.63 percent. The stock has been moved at -13.20 percent over the last six months. The stock has performed 8.12 percent around the most recent 30 days and changed -3.21 percent over the most recent 3-months.

If compared to the average trading volume of 7.45M shares, LUV reached to a volume of 6209276 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 $56.20 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 1.70, with the Price to Sales ratio for LUV stock in the period of the last 12 months amounting to 1.46. The Price to Book ratio for the last quarter was 2.53, with the Price to Cash per share for the same quarter was set at 26.05. Price to Free Cash Flow for LUV in the course of the last twelve months was 9.51 with Quick ratio for the last quarter at 1.80.

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 -5.63. With this latest performance, LUV shares gained by 8.12% in over the last four-week period, additionally sinking by -13.20% over the last 6 months – not to mention a drop of -25.41% 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 45.66, with the RSI for the last a single of trading hit 41.44, and the three-weeks RSI is set at 47.88 for Southwest Airlines Co. [LUV]. The present Moving Average for the last 50 days of trading for this stock 44.15, while it was recorded at 45.92 for the last single week of trading, and 46.58 for the last 200 days.

Southwest Airlines Co. [LUV]: An insightful look at the core fundamentals

Southwest Airlines Co.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.80 and a Current Ratio set at 1.90.

Southwest Airlines Co. [LUV]: Insider Ownership positions

There are presently around $20,066 million, or 78.80% 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 $2.38 billion in LUV stocks shares; and STATE STREET CORP, currently with $1.79 billion in LUV stock with ownership of nearly 1.253% of the company’s market capitalization.

451 institutional holders increased their position in Southwest Airlines Co. [NYSE:LUV] by around 40,961,929 shares. Additionally, 475 investors decreased positions by around 37,899,112 shares, while 193 investors held positions by with 378,949,712 shares. The mentioned changes placed institutional holdings at 457,810,753 shares, according to the latest SEC report filing. LUV stock had 113 new institutional investments in for a total of 6,875,629 shares, while 115 institutional investors sold positions of 6,024,462 shares during the same period.