The stock of Southwest Airlines Co (NYSE: LUV) has increased by 2.14 when compared to last closing price of 24.29.Despite this, the company has seen a gain of 7.12% in its stock price over the last five trading days. CNBC reported 2023-11-18 that Thanksgiving will be a test to see how the aviation industry handles the year-end holidays while still managing strains.

Is It Worth Investing in Southwest Airlines Co (NYSE: LUV) Right Now?

Southwest Airlines Co (NYSE: LUV) has a higher price-to-earnings ratio of 33.87x compared to its average ratio, and the 36-month beta value for LUV is at 1.17. Analysts have varying views on the stock, with 3 analysts rating it as a “buy,” 2 rating it as “overweight,” 12 as “hold,” and 4 as “sell.”

The average price suggested by analysts for LUV is $26.89, which is $2.08 above the current market price. The public float for LUV is 593.58M, and currently, shorts hold a 4.19% of that float. The average trading volume for LUV on November 20, 2023 was 7.15M shares.

LUV’s Market Performance

The stock of Southwest Airlines Co (LUV) has seen a 7.12% increase in the past week, with a 1.81% rise in the past month, and a -22.27% fall in the past quarter. The volatility ratio for the week is 3.16%, and the volatility levels for the past 30 days are at 3.10% for LUV. The simple moving average for the past 20 days is 5.63% for LUV’s stock, with a -19.86% simple moving average for the past 200 days.

LUV Trading at -3.81% 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 -38.56% of loss for the given period.

Volatility was left at 3.10%, however, over the last 30 days, the volatility rate increased by 3.16%, as shares surge +2.52% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -15.98% lower at present.

During the last 5 trading sessions, LUV rose by +7.12%, which changed the moving average for the period of 200-days by -32.62% in comparison to the 20-day moving average, which settled at $23.52. In addition, Southwest Airlines Co saw -26.31% 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.

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 4.52, with 1.36 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 0.47, 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.

Conclusion

In conclusion, Southwest Airlines Co (LUV) has had a mixed performance lately. Opinion on the stock among analysts is bearish, with some giving it a “sell” rating and others 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.