Southwest Airlines Co. (LUV) on Track to Reach $41.00 in a Year

Southwest Airlines Co. (NYSE: LUV) is -28.10% lower on its value in year-to-date trading and has touched a low of $22.47 and a high of $58.83 in the current 52-week trading range. The LUV stock was last observed hovering at around $37.65 in the last trading session, with the day’s gains setting it 1.16% off its average median price target of $41.00 for the next 12 months. It is also 22.38% off the consensus price target high of $50.00 offered by 20 analysts, but current levels are -33.83% lower than the price target low of $29.00 for the same period.

Currently trading at $38.81, the stock is 12.91% and 15.02% above its SMA20 and SMA50 respectively. However, with a daily trading volume of 14.05 million and changing 3.08% at the moment leaves the stock -7.10% off its SMA200. LUV registered -25.79% loss for a year compared to 6-month loss of -17.34%. The firm has a 50-day simple moving average (SMA 50) of $33.92 and a 200-day simple moving average (SMA200) of $35.56.

The stock witnessed a 25.36% gain in the last 1 month and extending the period to 3 months gives it a 15.44%, and is 11.88% up over the last 5 days. If we measure the stock’s price variations over the week and the month, we find that the volatility rates stand at 3.80% over the week and 3.78% over the month.

Southwest Airlines Co. (LUV) has around 61118 employees, a market worth around $22.21B and $16.61B in sales. Current P/E ratio is 113.81 and Fwd P/E is 23.49. Profit margin for the company is 1.00%. Distance from 52-week low is 72.76% and -34.03% from its 52-week high. The company has generated returns on investments over the last 12 months (18.20%).

Southwest Airlines Co. (LUV) Analyst Forecasts

Analyst recommendations provided by FactSet shows that the consensus forecast for Southwest Airlines Co. (LUV) is a “Overweight”. 20 analysts offering their recommendations for the stock have an average rating of 2.30, where 9 rate it as a Hold and 0 think it is a “Overweight”. 11 of the analysts rate the stock as a “Buy”. 0 analysts have rated the stock as a Sell or Underperform.

Southwest Airlines Co. is expected to release its quarterly report on 10/22/2020 and quarterly earnings per share for the current quarter are estimated at -$2.3 with sales reaching $1.7B over the same period.The EPS is expected to shrink by -2.00% this year, but quarterly earnings will post -56.70% year-over-year. Quarterly sales are estimated to shrink -69.90% in year-over-year returns.

Southwest Airlines Co. (LUV) Top Institutional Holders

1,142 institutions hold shares in Southwest Airlines Co. (LUV), with 1.46M shares held by insiders accounting for 0.25% while institutional investors hold 76.53% of the company’s shares. The shares outstanding are 589.87M, and float is at 587.78M with Short Float at 2.59%. Institutions hold 76.34% of the Float.

The top institutional shareholder in the company is Primecap Management Company with over 69.19 million shares valued at $2.36 billion. The investor’s holdings represent 11.73% of the LUV Shares outstanding. As of Jun 29, 2020, the second largest holder is State Street Corporation with 43.75 million shares valued at $1.5 billion to account for 7.42% of the shares outstanding. The other top investors are Vanguard Group, Inc. (The) which holds 41.93 million shares representing 7.11% and valued at over $1.43 billion, while Blackrock Inc. holds 5.31% of the shares totaling 31.3 million with a market value of $1.07 billion.

Southwest Airlines Co. (LUV) Insider Activity

A total of 115 insider transactions have happened at Southwest Airlines Co. (LUV) in the last six months, with sales accounting for 101 and purchases happening 14 times. The most recent transaction is an insider sale by Watterson Andrew M, the company’s EVP & Chief Revenue Officer. SEC filings show that Watterson Andrew M sold 210 shares of the company’s common stock on May 29 at a price of $32.75 per share for a total of $6878.0. Following the sale, the insider now owns 31032.0 shares.

Southwest Airlines Co. disclosed in a document filed with the SEC on May 29 that Watterson Andrew M (EVP & Chief Revenue Officer) sold a total of 6,036 shares of the company’s common stock. The trade occurred on May 29 and was made at $32.55 per share for $0.2 million. Following the transaction, the insider now directly holds 31242.0 shares of the LUV stock.

Still, SEC filings show that on May 29, Watterson Andrew M (EVP & Chief Revenue Officer) disposed off 7,558 shares at an average price of $32.18 for $0.24 million. The insider now directly holds 37,278 shares of Southwest Airlines Co. (LUV).

Southwest Airlines Co. (LUV): Who are the competitors?

The company’s main competitors (and peers) include Delta Air Lines Inc. (DAL) that is trading -44.73% down over the past 12 months. Hawaiian Holdings Inc. (HA) is -43.81% down on the 1-year trading charts. Short interest in the company’s stock has risen 10.91% from the last report on Jul 14, 2020 to stand at a total of 13.55 million short shares sold with a short interest ratio of 1.17.