Southwest Airlines Co. [LUV] Revenue clocked in at $25.14 billion, down -8.61% YTD: What’s Next?

Southwest Airlines Co. [NYSE: LUV] loss -2.07% or -0.65 points to close at $30.77 with a heavy trading volume of 5518655 shares. The company report on September 5, 2023 at 9:20 AM that TENTATIVE AGREEMENT REACHED FOR SOUTHWEST AIRLINES MATERIAL SPECIALISTS.

Southwest Airlines Co. (NYSE: LUV) and the International Brotherhood of Teamsters (IBT) reached a Tentative Agreement for the airline’s Material Specialists.

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“We are pleased to reach a Tentative Agreement with the IBT for our Material Specialists who support our Technical Operations organization by having the right tools and parts ready to maintain our aircraft,” said Adam Carlisle, Vice President Labor Relations at Southwest Airlines®. “I appreciate both Teams working together to reach an agreement that rewards our Employees far before the amendable date for this contract.”.

It opened the trading session at $31.07, the shares rose to $31.26 and dropped to $30.5846, the range by which the price of stock traded the whole day. The daily chart for LUV points out that the company has recorded -8.86% loss over the past six months. However, it is still -8.35% lower than its most recent low trading price.

If we look at the average trading volume of 7.60M shares, LUV reached to a volume of 5518655 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 $36.56 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 2.90. 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.

Redburn have made an estimate for Southwest Airlines Co. shares, keeping their opinion on the stock as Sell, with their previous recommendation back on August 07, 2023.

The Average True Range (ATR) for Southwest Airlines Co. is set at 0.74, with the Price to Sales ratio for LUV stock in the period of the last 12 months amounting to 0.73. The Price to Book ratio for the last quarter was 1.70, with the Price to Cash per share for the same quarter was set at 20.33.

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 -1.03. With this latest performance, LUV shares dropped by -5.99% in over the last four-week period, additionally sinking by -8.86% over the last 6 months – not to mention a drop of -16.00% 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 31.99, with the RSI for the last a single of trading hit 27.13, and the three-weeks RSI is set at 36.41 for Southwest Airlines Co. [LUV]. The present Moving Average for the last 50 days of trading for this stock 34.39, while it was recorded at 31.45 for the last single week of trading, and 33.78 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 +0.78 and a Gross Margin at +16.46. Southwest Airlines Co.’s Net Margin is presently recorded at +2.26.

Return on Total Capital for LUV is now 0.86, given the latest momentum, and Return on Invested Capital for the company is 2.58. Return on Equity for this stock inclined to 5.11, with Return on Assets sitting at 1.43. When it comes to the capital structure of this company, Southwest Airlines Co. [LUV] has a Total Debt to Total Equity ratio set at 88.25. Additionally, LUV Total Debt to Total Capital is recorded at 46.88, with Total Debt to Total Assets ending up at 25.24. Long-Term Debt to Equity for the company is recorded at 85.75, with the Long-Term Debt to Total Capital now at 45.55.

Reflecting on the efficiency of the workforce at the company, Southwest Airlines Co. [LUV] managed to generate an average of $8,086 per employee. Receivables Turnover for the company is 19.87 with a Total Asset Turnover recorded at a value of 0.63.Southwest Airlines Co.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.20 and a Current Ratio set at 1.30.

Southwest Airlines Co. [LUV]: An earnings per share (EPS) analysis

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. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Southwest Airlines Co. go to 44.58%.

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

The top three institutional holders of LUV stocks are: VANGUARD GROUP INC with ownership of 1.31 billion shares, which is approximately 8.2089%. BLACKROCK INC., holding 1.04 billion shares of the stock with an approximate value of $170.67 trillion in LUV stocks shares; and BERKSHIRE HATHAWAY INC, currently with $150.98 trillion in LUV stock with ownership which is approximately 5.7381%.

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