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Southwest Airlines Co. (LUV) Beta Value: Understanding the Market Risk

The price-to-earnings ratio for Southwest Airlines Co. (NYSE: LUV) is above average at 34.36x. The 36-month beta value for LUV is also noteworthy at 1.17. There are mixed opinions on the stock, with 4 analysts rating it as a “buy,” 1 rating it as “overweight,” 14 rating it as “hold,” and 2 rating it as “sell.”

The average price estimated by analysts for LUV is $34.93, which is $5.43 above than the current price. The public float for LUV is 593.34M, and at present, short sellers hold a 3.53% of that float. The average trading volume of LUV on September 18, 2023 was 7.56M shares.

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LUV) stock’s latest price update

The stock of Southwest Airlines Co. (NYSE: LUV) has increased by 2.59 when compared to last closing price of 28.94. Despite this, the company has experienced a 0.54% gain in its stock price over the last five trading sessions. WSJ reported 2023-09-16 that Investors are worried that the postpandemic travel surge will fade.

LUV’s Market Performance

Southwest Airlines Co. (LUV) has experienced a 0.54% rise in stock performance for the past week, with a -9.81% drop in the past month, and a -12.60% drop in the past quarter. The volatility ratio for the week is 2.19%, and the volatility levels for the past 30 days are at 2.12% for LUV. The simple moving average for the last 20 days is -3.52% for LUV stock, with a simple moving average of -11.30% for the last 200 days.

Analysts’ Opinion of LUV

Many brokerage firms have already submitted their reports for LUV stocks, with Exane BNP Paribas repeating the rating for LUV by listing it as a “Neutral.” The predicted price for LUV in the upcoming period, according to Exane BNP Paribas is $34 based on the research report published on September 06, 2023 of the current year 2023.

LUV Trading at -11.29% from the 50-Day Moving Average

After a stumble in the market that brought LUV to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -26.47% of loss for the given period.

Volatility was left at 2.12%, however, over the last 30 days, the volatility rate increased by 2.19%, as shares sank -7.88% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -19.97% lower at present.

During the last 5 trading sessions, LUV rose by +0.54%, which changed the moving average for the period of 200-days by -23.02% in comparison to the 20-day moving average, which settled at $30.65. In addition, Southwest Airlines Co. saw -11.82% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at LUV starting from Green Ryan C., who sale 4,936 shares at the price of $29.94 back on May 02. After this action, Green Ryan C. now owns 26,361 shares of Southwest Airlines Co., valued at $147,787 using the latest closing price.

MONTFORD JOHN T, the Director of Southwest Airlines Co., sale 2,250 shares at $38.87 during a trade that took place back on Nov 10, which means that MONTFORD JOHN T is holding 21,046 shares at $87,458 based on the most recent closing price.

Stock Fundamentals for LUV

Current profitability levels for the company are sitting at:

  • +0.78 for the present operating margin
  • +16.46 for the gross margin

The net margin for Southwest Airlines Co. stands at +2.26. The total capital return value is set at 0.86, while invested capital returns managed to touch 2.58. Equity return is now at value 5.40, with 1.60 for asset returns.

Based on Southwest Airlines Co. (LUV), the company’s capital structure generated 88.25 points at debt to equity in total, while total debt to capital is 46.88. Total debt to assets is 25.24, with long-term debt to equity ratio resting at 85.75. Finally, the long-term debt to capital ratio is 45.55.

When we switch over and look at the enterprise to sales, we see a ratio of 0.59, with the company’s debt to enterprise value settled at 0.50. The receivables turnover for the company is 19.87 and the total asset turnover is 0.63. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.43.


In summary, Southwest Airlines Co. (LUV) has had a bad performance as of late. Analysts have bullish opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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