Southwest Airlines (NYSE:LUV) Shares Gap Down – Here’s Why

Southwest Airlines Co. (NYSE:LUV)’s share price gapped down prior to trading on Tuesday . The stock had previously closed at $33.58, but opened at $32.72. Southwest Airlines shares last traded at $32.48, with a volume of 3,188,446 shares traded.

Wall Street Analysts Forecast Growth

LUV has been the topic of a number of research analyst reports. TD Cowen lifted their price target on Southwest Airlines from $25.00 to $28.00 and gave the company a “hold” rating in a report on Friday, December 6th. Barclays lifted their target price on Southwest Airlines from $32.00 to $35.00 and gave the company an “equal weight” rating in a research note on Friday, December 6th. Melius Research raised shares of Southwest Airlines from a “sell” rating to a “hold” rating and increased their price target for the stock from $28.00 to $34.00 in a research report on Thursday, March 20th. Jefferies Financial Group downgraded shares of Southwest Airlines from a “hold” rating to an “underperform” rating and set a $28.00 price objective on the stock. in a research report on Tuesday. Finally, Morgan Stanley reiterated an “overweight” rating and issued a $42.00 price objective on shares of Southwest Airlines in a research note on Wednesday, December 11th. Six equities research analysts have rated the stock with a sell rating, ten have given a hold rating and four have issued a buy rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $32.32.

Southwest Airlines Trading Down 4.1 %

The company has a current ratio of 0.92, a quick ratio of 0.85 and a debt-to-equity ratio of 0.49. The company has a fifty day moving average of $31.36 and a two-hundred day moving average of $31.60. The stock has a market capitalization of $19.08 billion, a price-to-earnings ratio of 44.69, a price-to-earnings-growth ratio of 0.97 and a beta of 1.10.

Southwest Airlines (NYSE:LUV) last issued its quarterly earnings data on Thursday, January 30th. The airline reported $0.56 earnings per share for the quarter, topping analysts’ consensus estimates of $0.45 by $0.11. Southwest Airlines had a net margin of 1.69% and a return on equity of 5.77%. On average, research analysts expect that Southwest Airlines Co. will post 1.55 EPS for the current year.

Southwest Airlines Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 2nd. Stockholders of record on Wednesday, March 12th will be given a $0.18 dividend. This represents a $0.72 annualized dividend and a dividend yield of 2.24%. The ex-dividend date of this dividend is Wednesday, March 12th. Southwest Airlines’s dividend payout ratio is currently 100.00%.

Insider Transactions at Southwest Airlines

In other Southwest Airlines news, Director C. David Cush bought 5,000 shares of the stock in a transaction on Wednesday, March 12th. The shares were purchased at an average price of $30.03 per share, with a total value of $150,150.00. Following the acquisition, the director now directly owns 19,011 shares of the company’s stock, valued at $570,900.33. This represents a 35.69 % increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. 0.33% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Southwest Airlines

Hedge funds have recently modified their holdings of the business. Kestra Investment Management LLC acquired a new position in Southwest Airlines during the 4th quarter valued at $26,000. Raleigh Capital Management Inc. increased its holdings in shares of Southwest Airlines by 186.7% during the 4th quarter. Raleigh Capital Management Inc. now owns 883 shares of the airline’s stock worth $30,000 after purchasing an additional 575 shares during the period. Sanctuary Wealth Management L.L.C. raised its position in shares of Southwest Airlines by 196.3% during the fourth quarter. Sanctuary Wealth Management L.L.C. now owns 889 shares of the airline’s stock valued at $30,000 after buying an additional 589 shares during the last quarter. TD Private Client Wealth LLC lifted its stake in shares of Southwest Airlines by 41.1% in the third quarter. TD Private Client Wealth LLC now owns 1,184 shares of the airline’s stock valued at $35,000 after buying an additional 345 shares during the period. Finally, VSM Wealth Advisory LLC bought a new stake in shares of Southwest Airlines in the fourth quarter valued at about $42,000. 80.82% of the stock is owned by institutional investors.

Southwest Airlines Company Profile

Southwest Airlines Co operates as a passenger airline company that provides scheduled air transportation services in the United States and near-international markets. As of December 31, 2023, the company operated a total fleet of 817 Boeing 737 aircraft; and served 121 destinations in 42 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as ten near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos.