Southwest Airlines Co [LUV] moved down -4.26: Why It’s Important

Southwest Airlines Co [NYSE: LUV] closed the trading session at $28.57 on 01/12/24. The day’s price range saw the stock hit a low of $28.22, while the highest price level was $29.57. The company report on January 9, 2024 at 11:00 AM that SOUTHWEST AIRLINES CELEBRATES WEEK OF WOW WITH UP TO 40% OFF BASE FARES AND DEALS ON HOTELS, CAR RENTALS, AND VACATION PACKAGES.

Southwest Airlines Co. (NYSE: LUV) today launched one of its largest sales of the year as part of its Week of WOW 2024. Today, through Jan. 11, 2024, 11:59 p.m. Pacific Time, Southwest® Customers can save up to 40% off base fares for flights by using WOW in the promo code box when booking travel between Jan. 30 and May 22, 2024.1 (Restrictions, exclusions, and blackout dates apply. Seats and days are limited. Discount applied before government taxes and fees.) Visit Southwest.com® to book and view the full terms and conditions.

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“We know low fares and lots of flexibility are top of mind for Customers, and our Week of WOW delivers on both to kick off a new year of travel adventures,” said Jonathan Clarkson, Vice President of Marketing at Southwest Airlines. “With 121 airports across our vast network, we look forward to serving Customers with our legendary Hospitality and flexible travel policies, like bags fly free,2 no change or cancel fees,3 and flight credits that don’t expire.4”.

The stocks have a year to date performance of -1.07 percent and weekly performance of -1.99 percent. The stock has been moved at -21.42 percent over the last six months. The stock has performed -5.74 percent around the most recent 30 days and changed 12.26 percent over the most recent 3-months.

If compared to the average trading volume of 8.27M shares, LUV reached to a volume of 9813997 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 $27.23 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 3.18. 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.

Bernstein have made an estimate for Southwest Airlines Co shares, keeping their opinion on the stock as Underperform, with their previous recommendation back on January 08, 2024.

The Average True Range (ATR) for Southwest Airlines Co is set at 0.86, with the Price to Sales ratio for LUV stock in the period of the last 12 months amounting to 0.67. The Price to Book ratio for the last quarter was 1.54, with the Price to Cash per share for the same quarter was set at 19.68.

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 -1.99. With this latest performance, LUV shares dropped by -5.74% in over the last four-week period, additionally sinking by -21.42% over the last 6 months – not to mention a drop of -20.57% 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 50.59, with the RSI for the last a single of trading hit 46.36, and the three-weeks RSI is set at 52.51 for Southwest Airlines Co [LUV]. The present Moving Average for the last 50 days of trading for this stock 26.91, while it was recorded at 29.31 for the last single week of trading, and 29.97 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 +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 1.14 and a Current Ratio set at 1.21.

Earnings per share (EPS) analysis for Southwest Airlines Co [LUV] stock

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 29.00%.

Southwest Airlines Co [LUV]: Institutional Ownership

The top three institutional holders of LUV stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2815%. BLACKROCK INC., holding 1.03 billion shares of the stock with an approximate value of $176.59 billion in LUV stocks shares; and BERKSHIRE HATHAWAY INC, currently with $156.75 billion in LUV stock with ownership which is approximately 5.8325%.