Investors Buy Southwest Airlines Co. (LUV) on Weakness
Traders purchased shares of Southwest Airlines Co. (NYSE:LUV) on weakness during trading hours on Thursday. $102.81 million flowed into the stock on the tick-up and $31.44 million flowed out of the stock on the tick-down, for a money net flow of $71.37 million into the stock. Of all equities tracked, Southwest Airlines had the 12th highest net in-flow for the day. Southwest Airlines traded down ($0.30) for the day and closed at $36.88
Several equities analysts have recently issued reports on LUV shares. Vetr upgraded Southwest Airlines from a “hold” rating to a “buy” rating and set a $38.00 price objective for the company in a research note on Monday. Morgan Stanley reiterated a “hold” rating and issued a $43.00 price objective on shares of Southwest Airlines in a research note on Sunday, August 21st. JPMorgan Chase & Co. cut Southwest Airlines from an “overweight” rating to a “neutral” rating and decreased their price objective for the company from $52.50 to $34.00 in a research note on Wednesday, July 27th. Evercore ISI upgraded Southwest Airlines from a “hold” rating to a “buy” rating and decreased their price objective for the company from $47.00 to $37.36 in a research note on Tuesday, July 26th. Finally, Credit Suisse Group AG reiterated an “outperform” rating and issued a $48.00 price objective on shares of Southwest Airlines in a research note on Monday, July 25th. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and ten have issued a buy rating to the company. The company presently has a consensus rating of “Buy” and an average price target of $48.94.
The company has a market cap of $22.69 billion and a price-to-earnings ratio of 9.71. The stock’s 50-day moving average price is $37.74 and its 200-day moving average price is $41.29.
Southwest Airlines (NYSE:LUV) last issued its quarterly earnings results on Thursday, July 21st. The airline reported $1.19 EPS for the quarter, missing analysts’ consensus estimates of $1.21 by $0.02. The company earned $5.38 billion during the quarter, compared to analysts’ expectations of $5.41 billion. During the same period in the prior year, the company earned $1.03 earnings per share. The business’s revenue was up 5.3% compared to the same quarter last year. On average, equities research analysts forecast that Southwest Airlines Co. will post $3.81 EPS for the current year.
The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 8th. Investors of record on Thursday, August 18th will be issued a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a yield of 1.09%. The ex-dividend date is Tuesday, August 16th.
In related news, Director John T. Montford sold 1,210 shares of the 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 completion of the transaction, the director now owns 27,155 shares of the company’s stock, valued at $1,176,083.05. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Mark R. Shaw sold 1,776 shares of the stock in a transaction dated Wednesday, July 27th. The shares were sold at an average price of $37.62, for a total value of $66,813.12. Following the completion of the transaction, the senior vice president now directly owns 5,226 shares of the company’s stock, valued at approximately $196,602.12. The disclosure for this sale can be found here.
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.