Market Analysts see Southwest Airlines Co. [LUV] gaining to $40. Time to buy?

Southwest Airlines Co. [NYSE: LUV] price plunged by -1.00 percent to reach at -$0.37. The company report on January 23, 2023 that SOUTHWEST AIRLINES’ DISPATCHERS TO VOTE ON NEW CONTRACT.

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Southwest Airlines Co. (NYSE: LUV) and the Transport Workers Union Local 550 (TWU 550) today announced they reached a Tentative Agreement for the airline’s Dispatch Employees.

“This agreement rewards our Dispatch Employees for their many contributions while also supporting the needs of our business,” said Adam Carlisle, Vice President Labor Relations at Southwest Airlines®. “I appreciate the partnership and dedication from both Negotiating Teams as they worked to reach this agreement.”.

A sum of 6085665 shares traded at recent session while its average daily volume was at 6.47M shares. Southwest Airlines Co. shares reached a high of $37.20 and dropped to a low of $36.53 until finishing in the latest session at $36.69.

The one-year LUV stock forecast points to a potential upside of 22.25. The average equity rating for LUV stock is currently 2.10, trading closer to a bullish pattern in the stock market.

Guru’s Opinion on 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 $47.19 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.

Susquehanna have made an estimate for Southwest Airlines Co. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on January 11, 2023. While these analysts kept the previous recommendation, Goldman raised their target price to Neutral. The new note on the price target was released on December 16, 2022, representing the official price target for Southwest Airlines Co. stock.

The Average True Range (ATR) for Southwest Airlines Co. is set at 1.13, with the Price to Sales ratio for LUV stock in the period of the last 12 months amounting to 0.94. The Price to Book ratio for the last quarter was 1.99, with the Price to Cash per share for the same quarter was set at 23.41. Price to Free Cash Flow for LUV in the course of the last twelve months was 6.23 with Quick ratio for the last quarter at 1.50.

LUV Stock Performance Analysis:

Southwest Airlines Co. [LUV] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.81. With this latest performance, LUV shares gained by 0.82% in over the last four-week period, additionally sinking by -8.82% over the last 6 months – not to mention a drop of -17.25% 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 53.42, with the RSI for the last a single of trading hit 56.27, and the three-weeks RSI is set at 51.94 for Southwest Airlines Co. [LUV]. The present Moving Average for the last 50 days of trading for this stock 37.04, while it was recorded at 36.71 for the last single week of trading, and 38.49 for the last 200 days.

Insight into Southwest Airlines Co. 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 1.50 and a Current Ratio set at 1.60.

Southwest Airlines Co. [LUV] Insider Position Details

There are presently around $16,371 million, or 76.10% 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 $1.94 billion in LUV stocks shares; and STATE STREET CORP, currently with $1.47 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 January and at the time of the January reporting period, where 397 institutional holders increased their position in Southwest Airlines Co. [NYSE:LUV] by around 41,217,069 shares. Additionally, 439 investors decreased positions by around 46,893,475 shares, while 191 investors held positions by with 358,087,195 shares. The mentioned changes placed institutional holdings at 446,197,739 shares, according to the latest SEC report filing. LUV stock had 94 new institutional investments in for a total of 20,714,683 shares, while 130 institutional investors sold positions of 2,635,938 shares during the same period.


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