The stock price of Southwest Airlines Co (NYSE: LUV) has surged by 0.57 when compared to previous closing price of 31.79, but the company has seen a -1.93% decline in its stock price over the last five trading sessions. prnewswire.com reported 2024-11-21 that DALLAS, Nov. 21, 2024 /PRNewswire/ — Southwest Airlines Co. (NYSE: LUV) Board of Directors declared a quarterly cash dividend of $.18 per share to Shareholders of record at the close of business on December 26, 2024, on all shares then issued and outstanding. The quarterly dividend will be paid on January 16, 2025.
Is It Worth Investing in Southwest Airlines Co (NYSE: LUV) Right Now?
The 36-month beta value for LUV is also noteworthy at 1.15. There are mixed opinions on the stock, with 9 analysts rating it as a “buy,” 7 rating it as “overweight,” 13 rating it as “hold,” and 2 rating it as “sell.”
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The public float for LUV is 593.39M, and at present, short sellers hold a 6.70% of that float. The average trading volume of LUV on November 25, 2024 was 7.99M shares.
LUV’s Market Performance
The stock of Southwest Airlines Co (LUV) has seen a -1.93% decrease in the past week, with a 10.17% rise in the past month, and a 13.37% gain in the past quarter. The volatility ratio for the week is 2.22%, and the volatility levels for the past 30 days are at 2.73% for LUV. The simple moving average for the past 20 days is 1.29% for LUV’s stock, with a 9.81% simple moving average for the past 200 days.
Analysts’ Opinion of LUV
Many brokerage firms have already submitted their reports for LUV stocks, with Goldman repeating the rating for LUV by listing it as a “Sell.” The predicted price for LUV in the upcoming period, according to Goldman is $28 based on the research report published on November 15, 2024 of the current year 2024.
BofA Securities, on the other hand, stated in their research note that they expect to see LUV reach a price target of $33. The rating they have provided for LUV stocks is “Neutral” according to the report published on November 04th, 2024.
Jefferies gave a rating of “Hold” to LUV, setting the target price at $32 in the report published on October 09th of the current year.
LUV Trading at 4.51% 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 -9.12% of loss for the given period.
Volatility was left at 2.73%, however, over the last 30 days, the volatility rate increased by 2.22%, as shares surge +8.63% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +11.47% upper at present.
During the last 5 trading sessions, LUV fell by -1.93%, which changed the moving average for the period of 200-days by -1.11% in comparison to the 20-day moving average, which settled at $31.56. In addition, Southwest Airlines Co saw 10.70% 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 Elliott Investment Management, who sale 1,203,920 shares at the price of $29.83 back on Oct 28 ’24. After this action, Elliott Investment Management now owns 59,912,580 shares of Southwest Airlines Co, valued at $35,912,934 using the latest closing price.
GANGWAL RAKESH, the Director of Southwest Airlines Co, purchase 643,788 shares at $29.98 during a trade that took place back on Oct 01 ’24, which means that GANGWAL RAKESH is holding 3,606,311 shares at $19,300,400 based on the most recent closing price.
Stock Fundamentals for LUV
Current profitability levels for the company are sitting at:
- -0.01 for the present operating margin
- -0.06 for the gross margin
The net margin for Southwest Airlines Co stands at -0.0. The total capital return value is set at -0.03. Equity return is now at value -0.15, with -0.04 for asset returns.
Based on Southwest Airlines Co (LUV), the company’s capital structure generated 0.44 points at debt to capital in total, while cash flow to debt ratio is standing at 0.05. The debt to equity ratio resting at 0.79. The interest coverage ratio of the stock is -1.24.
Currently, EBITDA for the company is 2.39 billion with net debt to EBITDA at 0.31. When we switch over and look at the enterprise to sales, we see a ratio of 0.72. The receivables turnover for the company is 23.26for trailing twelve months and the total asset turnover is 1.14. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.88.
Conclusion
In summary, Southwest Airlines Co (LUV) has had a better performance as of late. Analysts have bullish opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
