The stock of Southwest Airlines Co (LUV) has seen a 6.68% increase in the past week, with a 1.87% gain in the past month, and a -2.03% decrease in the past quarter. The volatility ratio for the week is 2.13%, and the volatility levels for the past 30 days are at 2.26% for LUV. The simple moving average for the past 20 days is 3.12% for LUV’s stock, with a -1.12% simple moving average for the past 200 days.
Is It Worth Investing in Southwest Airlines Co (NYSE: LUV) Right Now?
The price-to-earnings ratio for Southwest Airlines Co (NYSE: LUV) is above average at 39.96x. The 36-month beta value for LUV is also noteworthy at 1.12. There are mixed opinions on the stock, with 9 analysts rating it as a “buy,” 7 rating it as “overweight,” 3 rating it as “hold,” and 0 rating it as “sell.”
The public float for LUV is 593.72M, and at present, short sellers hold a 2.71% of that float. The average trading volume of LUV on April 22, 2024 was 8.35M shares.
LUV) stock’s latest price update
Southwest Airlines Co (NYSE: LUV)’s stock price has plunge by 1.10relation to previous closing price of 29.06. Nevertheless, the company has seen a 6.68% surge in its stock price over the last five trading sessions. Zacks Investment Research reported 2024-04-19 that Southwest Airlines (LUV) first-quarter 2024 revenues are expected to have benefited from growth in air-travel demand. Rising expenses are likely to have weighed on the bottom line.
Analysts’ Opinion of LUV
Many brokerage firms have already submitted their reports for LUV stocks, with Jefferies repeating the rating for LUV by listing it as a “Hold.” The predicted price for LUV in the upcoming period, according to Jefferies is $28 based on the research report published on March 13, 2024 of the current year 2024.
Argus, on the other hand, stated in their research note that they expect to see LUV reach a price target of $40. The rating they have provided for LUV stocks is “Buy” according to the report published on March 12th, 2024.
Deutsche Bank gave a rating of “Buy” to LUV, setting the target price at $42 in the report published on February 20th of the current year.
LUV Trading at -4.91% 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 -25.68% of loss for the given period.
Volatility was left at 2.26%, however, over the last 30 days, the volatility rate increased by 2.13%, as shares surge +2.44% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -4.42% lower at present.
During the last 5 trading sessions, LUV rose by +6.68%, which changed the moving average for the period of 200-days by -21.06% in comparison to the 20-day moving average, which settled at $28.53. In addition, Southwest Airlines Co saw 1.73% in overturn over a single year, with a tendency to cut further gains.
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 ’23. 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:
- 0.01 for the present operating margin
- 0.16 for the gross margin
The net margin for Southwest Airlines Co stands at 0.02. The total capital return value is set at 0.01. Equity return is now at value 4.70, with 1.31 for asset returns.
Based on Southwest Airlines Co (LUV), the company’s capital structure generated 0.47 points at debt to capital in total, while cash flow to debt ratio is standing at 0.34. The debt to equity ratio resting at 0.87. The interest coverage ratio of the stock is 1.53.
Currently, EBITDA for the company is 2.33 billion with net debt to EBITDA at -0.04. When we switch over and look at the enterprise to sales, we see a ratio of 0.67. The receivables turnover for the company is 22.85for trailing twelve months and the total asset turnover is 0.72. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.14.
Conclusion
In summary, Southwest Airlines Co (LUV) has had a mixed 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.
