Traders Buy Shares of Southwest Airlines Co. (LUV) on Weakness
Investors bought shares of Southwest Airlines Co. (NYSE:LUV) on weakness during trading hours on Friday. $88.30 million flowed into the stock on the tick-up and $42.82 million flowed out of the stock on the tick-down, for a money net flow of $45.48 million into the stock. Of all companies tracked, Southwest Airlines had the 13th highest net in-flow for the day. Southwest Airlines traded down ($0.49) for the day and closed at $36.35
LUV has been the subject of a number of research reports. Vetr raised shares of Southwest Airlines from a “buy” rating to a “strong-buy” rating and set a $48.33 target price for the company in a report on Tuesday, June 14th. Evercore ISI raised shares of Southwest Airlines from a “hold” rating to a “buy” rating and dropped their target price for the stock from $47.00 to $37.36 in a report on Tuesday, July 26th. Argus lowered shares of Southwest Airlines from a “buy” rating to a “hold” rating and upped their target price for the stock from $32.94 to $37.83 in a report on Monday, July 25th. Credit Suisse Group AG reaffirmed an “outperform” rating on shares of Southwest Airlines in a report on Wednesday, July 6th. Finally, Buckingham Research lowered shares of Southwest Airlines from a “buy” rating to a “neutral” rating in a report on Friday, July 22nd. One research analyst has rated the stock with a sell rating, five have assigned a hold rating and ten have issued a buy rating to the stock. The company currently has a consensus rating of “Buy” and an average price target of $49.51.
The stock has a 50 day moving average of $38.67 and a 200 day moving average of $41.25. The firm has a market cap of $22.55 billion and a price-to-earnings ratio of 9.64.
Southwest Airlines (NYSE:LUV) last released its quarterly earnings results on Thursday, July 21st. The airline reported $1.19 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.21 by $0.02. During the same period in the previous year, the business earned $1.03 earnings per share. The firm earned $5.38 billion during the quarter, compared to analyst estimates of $5.41 billion. The firm’s revenue was up 5.3% on a year-over-year basis. Equities analysts expect that Southwest Airlines Co. will post $3.83 EPS for the current fiscal year.
The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 8th. Investors of record on Thursday, August 18th will be given a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a yield of 1.10%. The ex-dividend date is Tuesday, August 16th.
In related news, insider Gary C. Kelly acquired 28,106 shares of the company’s stock in a transaction that occurred on Tuesday, August 2nd. The stock was purchased at an average price of $35.58 per share, for a total transaction of $1,000,011.48. Following the transaction, the insider now owns 505,119 shares in the company, valued at approximately $17,972,134.02. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director John T. Montford sold 1,210 shares of Southwest Airlines stock in a transaction dated Tuesday, June 7th. The stock was sold at an average price of $43.31, for a total value of $52,405.10. Following the sale, the director now owns 27,155 shares of the company’s stock, valued at approximately $1,176,083.05. The disclosure for this sale can be found here.
A number of hedge funds recently bought and sold shares of LUV. State of Tennessee Treasury Department boosted its stake in Southwest Airlines by 87.1% in the fourth quarter. State of Tennessee Treasury Department now owns 1,240,247 shares of the airline’s stock worth $53,405,000 after buying an additional 577,482 shares in the last quarter. Redwood Investments LLC boosted its stake in Southwest Airlines by 172.5% in the fourth quarter. Redwood Investments LLC now owns 118,498 shares of the airline’s stock worth $5,103,000 after buying an additional 75,007 shares in the last quarter. Summit Securities Group LLC bought a new stake in Southwest Airlines during the fourth quarter worth approximately $2,226,000. Trexquant Investment LP boosted its stake in Southwest Airlines by 87.7% in the fourth quarter. Trexquant Investment LP now owns 51,800 shares of the airline’s stock worth $2,231,000 after buying an additional 24,200 shares in the last quarter. Finally, KBC Group NV boosted its stake in Southwest Airlines by 8.3% in the fourth quarter. KBC Group NV now owns 282,545 shares of the airline’s stock worth $12,167,000 after buying an additional 21,720 shares in the last quarter.
Southwest Airlines Co (Southwest) operates Southwest Airlines. Southwest is a passenger airline that provides scheduled air transportation in the United States and near-international markets. The Company serves approximately 100 destinations in over 40 states, such as the District of Columbia, the Commonwealth of Puerto Rico, and approximately seven near-international countries, including Mexico, Jamaica, The Bahamas, Aruba, Dominican Republic, Costa Rica, and Belize.
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