Southwest Airlines Co (NYSE: LUV) has a higher price-to-earnings ratio of 49.04x compared to its average ratio. LUV has 36-month beta value of 0.95. Analysts have mixed views on the stock, with 3 analysts rating it as a “buy,” 2 as “overweight,” 12 as “hold,” and 4 as “sell.”
The public float for LUV is 585.70M, and currently, short sellers hold a 7.11% ratio of that float. The average trading volume of LUV on March 24, 2025 was 9.93M shares.
LUV) stock’s latest price update
The stock price of Southwest Airlines Co (NYSE: LUV) has jumped by 1.99 compared to previous close of 34.15. Despite this, the company has seen a gain of 9.77% in its stock price over the last five trading days. wsj.com reported 2025-03-21 that The company, an outlier in the airline industry for its commitment to hedging, says the program got too costly.
LUV’s Market Performance
LUV’s stock has risen by 9.77% in the past week, with a monthly rise of 13.79% and a quarterly rise of 6.16%. The volatility ratio for the week is 3.30% while the volatility levels for the last 30 days are 3.67% for Southwest Airlines Co. The simple moving average for the past 20 days is 12.30% for LUV’s stock, with a 15.72% simple moving average for the past 200 days.
Analysts’ Opinion of LUV
Many brokerage firms have already submitted their reports for LUV stocks, with UBS repeating the rating for LUV by listing it as a “Neutral.” The predicted price for LUV in the upcoming period, according to UBS is $36 based on the research report published on March 20, 2025 of the current year 2025.
JP Morgan gave a rating of “Underweight” to LUV, setting the target price at $25 in the report published on March 03rd of the current year.
LUV Trading at 11.54% 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 -3.57% of loss for the given period.
Volatility was left at 3.67%, however, over the last 30 days, the volatility rate increased by 3.30%, as shares surge +16.84% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +5.93% upper at present.
During the last 5 trading sessions, LUV rose by +9.77%, which changed the moving average for the period of 200-days by +25.79% in comparison to the 20-day moving average, which settled at $31.01. In addition, Southwest Airlines Co saw 3.60% 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 Cush C. David, who purchase 5,000 shares at the price of $30.03 back on Mar 12 ’25. After this action, Cush C. David now owns 19,011 shares of Southwest Airlines Co, valued at $150,150 using the latest closing price.
Watson Patricia A, the Director of Southwest Airlines Co, purchase 3,268 shares at $30.58 during a trade that took place back on Mar 13 ’25, which means that Watson Patricia A is holding 11,243 shares at $99,935 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
- 0.17 for the gross margin
The net margin for Southwest Airlines Co stands at 0.02. The total capital return value is set at 0.02. Equity return is now at value 4.50, with 1.26 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 0.06. The debt to equity ratio resting at 0.78. The interest coverage ratio of the stock is 1.89.
Currently, EBITDA for the company is 2.5 billion with net debt to EBITDA at 0.22. When we switch over and look at the enterprise to sales, we see a ratio of 0.77. The receivables turnover for the company is 24.76for trailing twelve months and the total asset turnover is 0.81. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.92.
Conclusion
To put it simply, Southwest Airlines Co (LUV) has had a better performance in recent times. Analysts have a bearish opinion on the stock, with some rating it as a “sell” 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.
