Investors Buy Southwest Airlines (LUV) on Weakness

Traders bought shares of Southwest Airlines Co (NYSE:LUV) on weakness during trading on Friday. $117.52 million flowed into the stock on the tick-up and $60.04 million flowed out of the stock on the tick-down, for a money net flow of $57.48 million into the stock. Of all equities tracked, Southwest Airlines had the 20th highest net in-flow for the day. Southwest Airlines traded down ($0.01) for the day and closed at $65.05

Several research firms have commented on LUV. Stifel Nicolaus reaffirmed a “buy” rating and issued a $85.00 price target (up from $80.00) on shares of Southwest Airlines in a report on Wednesday, January 10th. Vetr lowered shares of Southwest Airlines from a “strong-buy” rating to a “sell” rating and set a $48.78 price target on the stock. in a report on Monday, November 6th. Cowen reaffirmed an “outperform” rating and issued a $64.00 price target (up from $62.00) on shares of Southwest Airlines in a report on Friday, October 27th. Macquarie initiated coverage on shares of Southwest Airlines in a report on Monday, September 25th. They issued an “outperform” rating and a $62.00 price target on the stock. Finally, ValuEngine lowered shares of Southwest Airlines from a “buy” rating to a “hold” rating in a research note on Wednesday, January 3rd. One research analyst has rated the stock with a sell rating, six have issued a hold rating and thirteen have given a buy rating to the stock. The stock presently has an average rating of “Buy” and a consensus target price of $67.93.

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 company has a market cap of $38,600.00, a P/E ratio of 18.64, a PEG ratio of 1.39 and a beta of 1.35.

Southwest Airlines (NYSE:LUV) last posted its earnings results on Thursday, October 26th. The airline reported $0.88 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.87 by $0.01. Southwest Airlines had a net margin of 10.12% and a return on equity of 24.85%. The business had revenue of $5.27 billion for the quarter, compared to analyst estimates of $5.29 billion. During the same period in the prior year, the company posted $0.93 EPS. The company’s revenue for the quarter was up 2.6% on a year-over-year basis. sell-side analysts forecast that Southwest Airlines Co will post 3.5 EPS for the current fiscal year.

The business also recently declared a quarterly dividend, which was paid on Thursday, January 4th. Investors of record on Thursday, December 7th were given a dividend of $0.125 per share. The ex-dividend date of this dividend was Wednesday, December 6th. This represents a $0.50 annualized dividend and a dividend yield of 0.77%. Southwest Airlines’s dividend payout ratio (DPR) is presently 14.33%.

In related news, Director John T. Montford sold 935 shares of the company’s stock in a transaction dated Wednesday, November 8th. The shares were sold at an average price of $53.94, for a total transaction of $50,433.90. Following the completion of the transaction, the director now owns 25,000 shares in the company, valued at approximately $1,348,500. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, EVP Robert E. Jordan sold 32,931 shares of the company’s stock in a transaction dated Thursday, December 14th. The stock was sold at an average price of $64.38, for a total transaction of $2,120,097.78. Following the transaction, the executive vice president now owns 76,993 shares of the company’s stock, valued at approximately $4,956,809.34. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 35,561 shares of company stock valued at $2,277,774. Insiders own 0.21% of the company’s stock.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Stonebridge Capital Advisors LLC raised its holdings in Southwest Airlines by 0.6% in the 2nd quarter. Stonebridge Capital Advisors LLC now owns 6,356 shares of the airline’s stock valued at $395,000 after acquiring an additional 35 shares during the last quarter. Bank of Hawaii raised its holdings in Southwest Airlines by 0.3% in the 2nd quarter. Bank of Hawaii now owns 12,906 shares of the airline’s stock valued at $802,000 after acquiring an additional 39 shares during the last quarter. Peapack Gladstone Financial Corp raised its holdings in Southwest Airlines by 2.5% in the 2nd quarter. Peapack Gladstone Financial Corp now owns 4,277 shares of the airline’s stock valued at $266,000 after acquiring an additional 104 shares during the last quarter. Advisory Services Network LLC raised its holdings in Southwest Airlines by 1.0% in the 2nd quarter. Advisory Services Network LLC now owns 13,716 shares of the airline’s stock valued at $852,000 after acquiring an additional 132 shares during the last quarter. Finally, Virtu KCG Holdings LLC raised its holdings in Southwest Airlines by 2.6% in the 2nd quarter. Virtu KCG Holdings LLC now owns 6,032 shares of the airline’s stock valued at $375,000 after acquiring an additional 150 shares during the last quarter. Hedge funds and other institutional investors own 78.58% of the company’s stock.

TRADEMARK VIOLATION WARNING: This news story was reported by Week Herald and is the sole property of of Week Herald. If you are accessing this news story on another website, it was illegally copied and reposted in violation of US and international trademark & copyright laws. The original version of this news story can be viewed at https://weekherald.com/2018/01/19/investors-buy-southwest-airlines-luv-on-weakness.html.

About Southwest Airlines

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.

Receive News & Ratings for Southwest Airlines Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Southwest Airlines and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply