Investors Buy Southwest Airlines (LUV) on Weakness
Traders purchased shares of Southwest Airlines Co (NYSE:LUV) on weakness during trading on Tuesday. $89.76 million flowed into the stock on the tick-up and $53.75 million flowed out of the stock on the tick-down, for a money net flow of $36.01 million into the stock. Of all companies tracked, Southwest Airlines had the 17th highest net in-flow for the day. Southwest Airlines traded down ($1.62) for the day and closed at $62.38
Several equities research analysts have recently issued reports on the company. Cowen reiterated a “buy” rating and set a $67.00 price target on shares of Southwest Airlines in a report on Tuesday. Bank of America lowered Southwest Airlines from a “buy” rating to a “neutral” rating and set a $73.00 price target for the company. in a report on Tuesday. ValuEngine downgraded Southwest Airlines from a “buy” rating to a “hold” rating in a research note on Wednesday, January 3rd. Vetr raised Southwest Airlines from a “sell” rating to a “hold” rating and set a $65.81 price objective on the stock in a research note on Monday, January 1st. Finally, Atlantic Securities raised Southwest Airlines from a “neutral” rating to an “overweight” rating and raised their price objective for the company from $48.71 to $71.00 in a research note on Thursday, December 14th. One analyst has rated the stock with a sell rating, six have issued a hold rating and thirteen have assigned a buy rating to the company. Southwest Airlines has an average rating of “Buy” and a consensus target price of $67.64.
The company has a quick ratio of 0.55, a current ratio of 0.61 and a debt-to-equity ratio of 0.46. The stock has a market cap of $37,020.00, a PE ratio of 17.87, a P/E/G ratio of 1.66 and a beta of 1.35.
Southwest Airlines (NYSE:LUV) last issued its quarterly earnings results on Thursday, October 26th. The airline reported $0.88 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.87 by $0.01. The company had revenue of $5.27 billion for the quarter, compared to the consensus estimate of $5.29 billion. Southwest Airlines had a return on equity of 24.85% and a net margin of 10.12%. The company’s revenue for the quarter was up 2.6% on a year-over-year basis. During the same period in the previous year, the business posted $0.93 EPS. sell-side analysts expect that Southwest Airlines Co will post 3.57 EPS for the current fiscal year.
The firm also recently declared a quarterly dividend, which was paid on Thursday, January 4th. Shareholders of record on Thursday, December 7th were given a $0.125 dividend. This represents a $0.50 annualized dividend and a yield of 0.80%. The ex-dividend date of this dividend was Wednesday, December 6th. Southwest Airlines’s dividend payout ratio is currently 14.33%.
In other news, Director John T. Montford sold 1,695 shares of the business’s stock in a transaction that occurred on Wednesday, December 13th. The stock was sold at an average price of $63.27, for a total transaction of $107,242.65. Following the sale, the director now directly owns 23,098 shares in the company, valued at $1,461,410.46. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director John T. Montford sold 935 shares of the business’s stock in a transaction that occurred on Wednesday, November 8th. The shares were sold at an average price of $53.94, for a total value of $50,433.90. Following the sale, the director now owns 25,000 shares in the company, valued at $1,348,500. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 35,593 shares of company stock worth $2,279,660. Company insiders own 0.21% of the company’s stock.
Institutional investors and hedge funds have recently added to or reduced their stakes in the company. BB&T Investment Services Inc. increased its position in shares of Southwest Airlines by 325.5% during the third quarter. BB&T Investment Services Inc. now owns 1,583 shares of the airline’s stock valued at $110,000 after purchasing an additional 1,211 shares during the period. Grove Bank & Trust increased its position in shares of Southwest Airlines by 365.0% during the third quarter. Grove Bank & Trust now owns 2,395 shares of the airline’s stock valued at $134,000 after purchasing an additional 1,880 shares during the period. Harfst & Associates Inc. increased its position in shares of Southwest Airlines by 43.8% during the second quarter. Harfst & Associates Inc. now owns 2,402 shares of the airline’s stock valued at $149,000 after purchasing an additional 732 shares during the period. Smith Moore & CO. bought a new stake in shares of Southwest Airlines during the third quarter valued at approximately $206,000. Finally, Courier Capital LLC bought a new stake in shares of Southwest Airlines during the third quarter valued at approximately $208,000. Institutional investors and hedge funds own 78.55% of the company’s stock.
Southwest Airlines Company Profile
Southwest Airlines Co (Southwest) operates Southwest Airlines, a passenger airline that provides scheduled air transportation in the United States and near-international markets. The Company provides point-to-point service. The Company offers ancillary service offerings, such as Southwest’s EarlyBird Check-In and transportation of pets and unaccompanied minors, in accordance with Southwest’s respective policies.
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