While Southwest Airlines Co has overperformed by 1.36%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, LUV fell by -9.78%, with highs and lows ranging from $36.12 to $23.58, whereas the simple moving average jumped by 3.03% in the last 200 days.
On February 11, 2025, Argus Upgraded Southwest Airlines Co (NYSE: LUV) to Buy. A report published by BofA Securities on January 17, 2025, Downgraded its rating to ‘Underperform’ for LUV. Citigroup also Downgraded LUV shares as ‘Sell’, setting a target price of $29.50 on the company’s shares in a report dated January 16, 2025. Morgan Stanley Initiated an Overweight rating on December 11, 2024, and assigned a price target of $42. TD Cowen resumed its ‘Hold’ rating for LUV, as published in its report on December 06, 2024. UBS’s report from November 26, 2024 suggests a price prediction of $27 for LUV shares, giving the stock a ‘Sell’ rating. Goldman also rated the stock as ‘Sell’.
Analysis of Southwest Airlines Co (LUV)
It’s important to note that LUV shareholders are currently getting $0.72 per share in dividends, so investors will receive a return regardless of how the company performs. Further, the quarter-over-quarter increase in sales is 1.60%, showing a positive trend in the upcoming months.
Southwest Airlines Co’s future performance can be predicted by a variety of well-rounded types of analysis and research, with equity being one of the most crucial ones. The goal here is to ensure that your current return on equity of 4.50% is sufficient for you to turn a profit off your investment. Taking into account the quick ratio of the company, currently set at 0.85, you can see that the company can cover any debts it may have, which can easily be seen in the annual report of the company.
For any stock, average volume can be an extremely valuable indicator of volatility, and LUV is registering an average volume of 7.49M. On a monthly basis, the volatility of the stock is set at 2.69%, whereas on a weekly basis, it is put at 2.45%, with a gain of 2.44% over the past seven days. Furthermore, long-term investors anticipate a median target price of $31.68, showing growth from the present price of $30.61, which can serve as yet another indication of whether LUV is worth investing in or should be passed over.
How Do You Analyze Southwest Airlines Co Shares?
A giant in the Airlines market, Southwest Airlines Co (LUV) is based in the USA. When comparing Southwest Airlines Co shares with other companies under Industrials, the P/E value is an influential factor to note. This is because it represents an indication of the future growth of the company in terms of investors’ expectations. Ultimately, the value of the latter should demonstrate steady, rapid growth, which is an accurate measure of the company’s progress. In addition to the value of 43.09, there is a growth in quarterly earnings of 212.96%.
Besides checking the fundamentals, you should also know how many employees own shares in the company. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 1.17%. This can enable you to see the extent to which executives own the company’s stock. As opposed to executive stock, institutional ownership accounts for 92.11% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.
LUV shares are owned by institutional investors to the tune of 92.11% at present.
