Southwest Airlines Co (NYSE: LUV) has a higher price-to-earnings ratio of 42.45x compared to its average ratio. LUV has 36-month beta value of 1.14. Analysts have mixed views on the stock, with 9 analysts rating it as a “buy,” 7 as “overweight,” 3 as “hold,” and 0 as “sell.”
The public float for LUV is 596.33M, and currently, short sellers hold a 3.26% ratio of that float. The average trading volume of LUV on May 06, 2024 was 9.17M shares.
LUV) stock’s latest price update
Southwest Airlines Co (NYSE: LUV)’s stock price has decreased by -0.98 compared to its previous closing price of 26.41. However, the company has seen a -3.26% decrease in its stock price over the last five trading sessions. The Motley Fool reported 2024-05-02 that Southwest, Frontier, and JetBlue shares all underperformed in April, with each company weighed down by different issues. It is possible some of these issues will not be resolved until after this demand cycle has ebbed.
LUV’s Market Performance
Southwest Airlines Co (LUV) has experienced a -3.26% fall in stock performance for the past week, with a -6.51% drop in the past month, and a -13.90% drop in the past quarter. The volatility ratio for the week is 2.61%, and the volatility levels for the past 30 days are at 2.71% for LUV. The simple moving average for the last 20 days is -6.74% for LUV stock, with a simple moving average of -10.52% for the last 200 days.
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 “Underperform.” The predicted price for LUV in the upcoming period, according to Jefferies is $20 based on the research report published on April 29, 2024 of the current year 2024.
TD Cowen, on the other hand, stated in their research note that they expect to see LUV reach a price target of $25, previously predicting the price at $26. The rating they have provided for LUV stocks is “Hold” according to the report published on April 26th, 2024.
Jefferies gave a rating of “Hold” to LUV, setting the target price at $28 in the report published on March 13th of the current year.
LUV Trading at -12.29% 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 -33.85% of loss for the given period.
Volatility was left at 2.71%, however, over the last 30 days, the volatility rate increased by 2.61%, as shares sank -7.73% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -23.63% lower at present.
During the last 5 trading sessions, LUV fell by -3.26%, which changed the moving average for the period of 200-days by -29.99% in comparison to the 20-day moving average, which settled at $27.93. In addition, Southwest Airlines Co saw -9.45% in overturn over a single year, with a tendency to cut further losses.
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 0.01. The total capital return value is set at 0.01. Equity return is now at value 4.16, with 1.19 for asset returns.
Based on Southwest Airlines Co (LUV), the company’s capital structure generated 0.45 points at debt to capital in total, while cash flow to debt ratio is standing at 0.29. The debt to equity ratio resting at 0.81. The interest coverage ratio of the stock is 0.59.
Currently, EBITDA for the company is 2.33 billion with net debt to EBITDA at 0.36. When we switch over and look at the enterprise to sales, we see a ratio of 0.62. The receivables turnover for the company is 19.73for trailing twelve months and the total asset turnover is 0.74. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.09.
Conclusion
To put it simply, Southwest Airlines Co (LUV) has had a bad performance in recent times. Analysts have a bullish opinion on the stock, with some rating 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.
