Southwest Airlines Co (NYSE: LUV) has experienced a decline in its stock price by -2.56 compared to its previous closing price of 28.08. However, the company has seen a gain of 0.66% in its stock price over the last five trading days. benzinga.com reported 2024-07-26 that Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
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 215.09x, Company’s 36-month beta value is 1.15.Analysts have differing opinions on the stock, with 9 analysts rating it as a “buy,” 7 as “overweight,” 3 as “hold,” and 0 as “sell.”
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The public float for LUV is 596.14M, and currently, short sellers hold a 7.68% ratio of that floaft. The average trading volume of LUV on July 26, 2024 was 10.16M shares.
LUV’s Market Performance
LUV’s stock has seen a 0.66% increase for the week, with a -3.83% drop in the past month and a 0.37% gain in the past quarter. The volatility ratio for the week is 4.73%, and the volatility levels for the past 30 days are at 3.40% for Southwest Airlines Co The simple moving average for the past 20 days is -1.37% for LUV’s stock, with a -3.09% simple moving average for the past 200 days.
Analysts’ Opinion of LUV
Many brokerage firms have already submitted their reports for LUV stocks, with TD Cowen repeating the rating for LUV by listing it as a “Hold.” The predicted price for LUV in the upcoming period, according to TD Cowen is $19 based on the research report published on July 17, 2024 of the current year 2024.
Melius, on the other hand, stated in their research note that they expect to see LUV reach a price target of $26. The rating they have provided for LUV stocks is “Sell” according to the report published on June 10th, 2024.
LUV Trading at -1.63% 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 -24.77% of loss for the given period.
Volatility was left at 3.40%, however, over the last 30 days, the volatility rate increased by 4.73%, as shares sank -4.78% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -3.63% lower at present.
During the last 5 trading sessions, LUV fell by -0.26%, which changed the moving average for the period of 200-days by +2.30% in comparison to the 20-day moving average, which settled at $27.67. In addition, Southwest Airlines Co saw -5.26% 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 1.04, with 0.31 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 0.64. 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 0.90.
Conclusion
In a nutshell, Southwest Airlines Co (LUV) has experienced a mixed performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. 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.