In the past week, LUV stock has gone down by -22.98%, with a monthly decline of -12.39% and a quarterly plunge of -22.48%. The volatility ratio for the week is 5.93%, and the volatility levels for the last 30 days are 4.26% for Southwest Airlines Co. The simple moving average for the past 20 days is -19.39% for LUV’s stock, with a -14.61% simple moving average for the past 200 days.
Is It Worth Investing in Southwest Airlines Co (NYSE: LUV) Right Now?
Southwest Airlines Co (NYSE: LUV) has a higher price-to-earnings ratio of 36.42x compared to its average ratio, The 36-month beta value for LUV is at 1.19. Analysts have varying views on the stock, with 3 analysts rating it as a “buy,” 2 rating it as “overweight,” 12 as “hold,” and 3 as “sell.”
The public float for LUV is 585.70M, and currently, shorts hold a 6.02% of that float. The average trading volume for LUV on April 07, 2025 was 11.29M shares.
LUV) stock’s latest price update
The stock price of Southwest Airlines Co (NYSE: LUV) has dropped by -10.36 compared to previous close of 28.86. Despite this, the company has seen a fall of -22.98% in its stock price over the last five trading days. fool.com reported 2025-04-03 that The stock market was experiencing its biggest one-day declines in several years on Thursday in the wake of President Trump’s tariff announcements. Not only will the tariffs affect over 180 countries around the world, but for the most part, they were also far worse than experts had anticipated.
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 $28 based on the research report published on April 01, 2025 of the current year 2025.
UBS, on the other hand, stated in their research note that they expect to see LUV reach a price target of $36, previously predicting the price at $29. The rating they have provided for LUV stocks is “Neutral” according to the report published on March 20th, 2025.
LUV Trading at -17.01% 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 -28.38% of loss for the given period.
Volatility was left at 4.26%, however, over the last 30 days, the volatility rate increased by 5.93%, as shares sank -11.40% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -18.98% lower at present.
During the last 5 trading sessions, LUV fell by -22.98%, which changed the moving average for the period of 200-days by -10.08% in comparison to the 20-day moving average, which settled at $32.09. In addition, Southwest Airlines Co saw -23.05% in overturn over a single year, with a tendency to cut further losses.
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 0.58. 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
In conclusion, Southwest Airlines Co (LUV) has had a bad performance lately. Opinion on the stock among analysts is mixed, with some giving it a “buy” rating and others 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.
