Southwest Airlines (NYSE:LUV) Upgraded by UBS Group to “Neutral” Rating

UBS Group upgraded shares of Southwest Airlines (NYSE:LUV) from a sell rating to a neutral rating in a research note released on Thursday, Marketbeat Ratings reports. The brokerage currently has $36.00 price objective on the airline’s stock, up from their prior price objective of $29.00.

A number of other brokerages have also recently issued reports on LUV. Bank of America reaffirmed an “underperform” rating and issued a $31.00 price objective (down from $33.00) on shares of Southwest Airlines in a research note on Friday, January 17th. Susquehanna reduced their price target on Southwest Airlines from $38.00 to $34.00 and set a “neutral” rating on the stock in a research report on Tuesday, February 4th. TD Cowen lifted their price objective on Southwest Airlines from $25.00 to $28.00 and gave the stock a “hold” rating in a research note on Friday, December 6th. Raymond James increased their target price on Southwest Airlines from $36.00 to $40.00 and gave the company an “outperform” rating in a research note on Monday, December 30th. Finally, Citigroup restated a “sell” rating and set a $29.50 target price (down from $31.50) on shares of Southwest Airlines in a research report on Thursday, January 16th. Five analysts have rated the stock with a sell rating, eleven have issued a hold rating and four have given a buy rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $32.52.

Southwest Airlines Stock Up 1.7 %

Shares of LUV opened at $34.16 on Thursday. The business’s fifty day moving average price is $31.13 and its two-hundred day moving average price is $31.33. The firm has a market capitalization of $20.25 billion, a price-to-earnings ratio of 47.45, a PEG ratio of 0.97 and a beta of 1.10. Southwest Airlines has a 52 week low of $23.58 and a 52 week high of $36.12. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.85 and a current ratio of 0.92.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings results on Thursday, January 30th. The airline reported $0.56 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.45 by $0.11. Southwest Airlines had a return on equity of 5.77% and a net margin of 1.69%. On average, analysts predict that Southwest Airlines will post 1.55 earnings per share for the current year.

Southwest Airlines Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 2nd. Shareholders of record on Wednesday, March 12th will be paid a $0.18 dividend. This represents a $0.72 annualized dividend and a yield of 2.11%. The ex-dividend date of this dividend is Wednesday, March 12th. Southwest Airlines’s payout ratio is 100.00%.

Insider Activity

In other Southwest Airlines news, Director C. David Cush bought 5,000 shares of the firm’s stock in a transaction that occurred on Wednesday, March 12th. The stock was acquired at an average price of $30.03 per share, with a total value of $150,150.00. Following the completion of the transaction, the director now owns 19,011 shares in the company, valued at approximately $570,900.33. This trade represents a 35.69 % increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.33% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of LUV. Caprock Group LLC acquired a new stake in shares of Southwest Airlines in the 3rd quarter valued at approximately $259,000. Highland Peak Capital LLC bought a new stake in Southwest Airlines during the third quarter worth $2,963,000. Integrated Investment Consultants LLC acquired a new stake in Southwest Airlines in the third quarter valued at $245,000. Charles Schwab Investment Management Inc. grew its position in shares of Southwest Airlines by 1.4% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 3,377,660 shares of the airline’s stock valued at $100,080,000 after acquiring an additional 46,110 shares during the period. Finally, Raymond James Trust N.A. acquired a new position in shares of Southwest Airlines during the 3rd quarter worth about $212,000. 80.82% of the stock is owned by institutional investors and hedge funds.

Southwest Airlines Company Profile

Southwest Airlines Co operates as a passenger airline company that provides scheduled air transportation services in the United States and near-international markets. As of December 31, 2023, the company operated a total fleet of 817 Boeing 737 aircraft; and served 121 destinations in 42 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as ten near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos.