Southwest Airlines Co (LUV) – Mismatched value: Check Out the Fundamental Analysis

Stocks of Southwest Airlines Co (NYSE:LUV) traded higher last session on Wall Street, up 0.13% to $23.56.

According to the data, Southwest Airlines Co (NYSE:LUV) has 22 analysts covering its stock. The consensus rating among analysts is ‘Hold’. As we calculate the median target price by taking the range between a high of $47.00 and a low of $18.00, we find $28.00. Given the previous closing price of $23.53, this indicates a potential upside of 19.0 percent. LUV stock price is now -12.53% away from the 50-day moving average and -25.09% away from the 200-day moving average. The market capitalization of the company currently stands at $14.04B.

A total of 15 analysts have issued a hold rating and 3 have given it a buy rating. Brokers who have rated the stock have averaged $28.56 as their price target over the next twelve months.

With the price target reduced from $26 to $20, TD Cowen Downgraded its rating from Outperform to Market Perform for Southwest Airlines Co (NYSE: LUV).

In other news, Green Ryan C., EVP, Chief Commercial Officer sold 4,936 shares of the company’s stock on May 02. The stock was sold for $147,787 at an average price of $29.94. Upon completion of the transaction, the EVP, Chief Commercial Officer now directly owns 26,361 shares in the company, valued at $0.62 million. An SEC document containing details of the transaction can be found on the SEC’s website. On Nov 10, Director MONTFORD JOHN T sold 2,250 shares of the business’s stock. A total of $87,458 was realized by selling the stock at an average price of $38.87. This leaves the insider owning 21,046 shares of the company worth $0.5 million. Insiders disposed of 77,449 shares of company stock worth roughly $1.82 million over the past 1 year. A total of 0.42% of the company’s stock is owned by insiders.

Tuesday’s opening bell rang with an opening price of $23.60 for Southwest Airlines Co (NYSE: LUV). During the past 12 months, Southwest Airlines Co has had a low of $21.91 and a high of $40.38. As of last week, the company has a debt-to-equity ratio of 0.84, a current ratio of 1.21, and a quick ratio of 1.14. According to the stock market information, the enterprise value for the company is $11.57B, which is based on a 32.17 price-to-earnings ratio, a 1.11 price-to-earnings-growth ratio, and a beta of 1.16. The fifty day moving average price for LUV is $26.93 and a two-hundred day moving average price translates $31.45 for the stock.

The latest earnings results from Southwest Airlines Co (NYSE: LUV) was released for Sep, 2023. According to the Airlines Company, earnings per share came in at $1.09, missing analysts’ expectations of $1.1 by -0.01. This compares to $0.43 EPS in the same period last year. The net profit margin was 1.95% and return on equity was 4.52% for LUV. The company reported revenue of $6.53 billion for the quarter, compared to $6.22 billion a year earlier. Comparatively to last year’s same quarter, the company’s quarterly revenue rose 4.9 percent. For the current quarter, analysts expect LUV to generate $6.56B in revenue.

Southwest Airlines Co(LUV) Company Profile

Southwest Airlines Co. operates as a passenger airline company that provide scheduled air transportation services in the United States and near-international markets. As of December 31, 2022, the company operated a total fleet of 770 Boeing 737 aircrafts; 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. It also provides inflight entertainment portal and connectivity services on Wi-Fi enabled aircrafts; and Rapid Rewards loyalty program that enables program members to earn points for dollars spent on Southwest base fares. In addition, the company offers a suite of digital platforms to support customers’ travel needs, including websites and apps; and SWABIZ, an online booking tool. Further, it provides ancillary services, such as Southwest’s EarlyBird Check-In, upgraded boarding, and transportation of pets and unaccompanied minors. The company was incorporated in 1967 and is headquartered in Dallas, Texas.

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