Wall Street Analyst Downgrade Southwest Airlines Co. [LUV]. What else is Wall St. saying

Southwest Airlines Co. [NYSE: LUV] gained 1.21% or 0.46 points to close at $38.63 with a heavy trading volume of 4028880 shares. The company report on October 27, 2022 that SOUTHWEST AIRLINES REPORTS THIRD QUARTER 2022 RESULTS.

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Southwest Airlines Co. (NYSE: LUV) (the “Company”) today reported its third quarter 2022 financial results:.

Net income of $277 million, or $0.44 per diluted share.

It opened the trading session at $38.27, the shares rose to $38.935 and dropped to $38.135, the range by which the price of stock traded the whole day. The daily chart for LUV points out that the company has recorded -9.00% loss over the past six months. However, it is still -27.91% lower than its most recent low trading price.

If we look at the average trading volume of 5.76M shares, LUV reached to a volume of 4028880 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 $49.33 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.

Argus have made an estimate for Southwest Airlines Co. shares, keeping their opinion on the stock as Hold, with their previous recommendation back on August 15, 2022. The new note on the price target was released on July 12, 2022, representing the official price target for Southwest Airlines Co. stock. Previously, the target price had yet another drop from $57 to $55, while Raymond James kept a Strong Buy rating on LUV stock.

The Average True Range (ATR) for Southwest Airlines Co. is set at 1.01, with the Price to Sales ratio for LUV stock in the period of the last 12 months amounting to 1.00. The Price to Book ratio for the last quarter was 2.10, with the Price to Cash per share for the same quarter was set at 23.32. Price to Free Cash Flow for LUV in the course of the last twelve months was 6.58 with Quick ratio for the last quarter at 1.50.

Trading performance analysis for LUV stock

Southwest Airlines Co. [LUV] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 1.68. With this latest performance, LUV shares gained by 11.58% in over the last four-week period, additionally sinking by -9.00% over the last 6 months – not to mention a drop of -17.77% 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 63.62, with the RSI for the last a single of trading hit 64.68, and the three-weeks RSI is set at 61.05 for Southwest Airlines Co. [LUV]. The present Moving Average for the last 50 days of trading for this stock 34.76, while it was recorded at 38.06 for the last single week of trading, and 39.85 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 -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 1.50 and a Current Ratio set at 1.60.

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

There are presently around $17,315 million, or 76.00% of LUV stock, in the hands of institutional investors. The top three institutional holders of LUV stocks are: VANGUARD GROUP INC with ownership of 64,861,508, which is approximately 0.993% of the company’s market cap and around 0.10% of the total institutional ownership; PRIMECAP MANAGEMENT CO/CA/, holding 52,741,484 shares of the stock with an approximate value of $2.04 billion in LUV stocks shares; and STATE STREET CORP, currently with $1.55 billion in LUV stock with ownership of nearly 0.039% 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 383 institutional holders increased their position in Southwest Airlines Co. [NYSE:LUV] by around 41,200,974 shares. Additionally, 448 investors decreased positions by around 47,598,390 shares, while 199 investors held positions by with 359,425,648 shares. The mentioned changes placed institutional holdings at 448,225,012 shares, according to the latest SEC report filing. LUV stock had 80 new institutional investments in for a total of 20,691,959 shares, while 132 institutional investors sold positions of 2,447,987 shares during the same period.

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