Evercore ISI Upgrades Southwest Airlines (NYSE:LUV) to “Outperform”

Southwest Airlines (NYSE:LUV) was upgraded by Evercore ISI from an “in-line” rating to an “outperform” rating in a note issued to investors on Tuesday, MarketBeat reports. The firm presently has a $35.00 price target on the airline’s stock, up from their previous price target of $30.00. Evercore ISI’s target price indicates a potential upside of 21.02% from the company’s previous close.

Other analysts have also issued reports about the stock. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and issued a $29.00 price objective (down from $32.00) on shares of Southwest Airlines in a research note on Friday, July 26th. HSBC initiated coverage on shares of Southwest Airlines in a research note on Monday, May 13th. They set a “hold” rating and a $27.80 price objective on the stock. Melius reissued a “sell” rating and issued a $26.00 price objective on shares of Southwest Airlines in a research note on Monday, June 10th. TD Cowen lowered their target price on Southwest Airlines from $26.00 to $19.00 and set a “hold” rating for the company in a report on Wednesday, July 17th. Finally, Argus reiterated a “hold” rating on shares of Southwest Airlines in a report on Tuesday, May 28th. Four equities research analysts have rated the stock with a sell rating, nine have given a hold rating and four have issued a buy rating to the stock. Based on data from MarketBeat.com, Southwest Airlines currently has a consensus rating of “Hold” and an average price target of $28.38.

Southwest Airlines Stock Performance

Shares of NYSE:LUV opened at $28.92 on Tuesday. The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.85 and a current ratio of 0.90. The firm has a market cap of $17.33 billion, a PE ratio of 45.90, a price-to-earnings-growth ratio of 27.27 and a beta of 1.15. The firm’s 50 day simple moving average is $27.18 and its 200-day simple moving average is $28.45. Southwest Airlines has a one year low of $21.91 and a one year high of $35.18.

Southwest Airlines (NYSE:LUV) last released its quarterly earnings data on Thursday, July 25th. The airline reported $0.58 EPS for the quarter, topping the consensus estimate of $0.51 by $0.07. Southwest Airlines had a return on equity of 5.92% and a net margin of 0.41%. The company had revenue of $7.40 billion for the quarter, compared to the consensus estimate of $7.32 billion. During the same period last year, the business posted $1.09 EPS. Southwest Airlines’s quarterly revenue was up 5.2% on a year-over-year basis. As a group, equities analysts predict that Southwest Airlines will post 0.23 EPS for the current year.

Institutional Trading of Southwest Airlines

A number of institutional investors have recently bought and sold shares of LUV. First Horizon Advisors Inc. acquired a new position in Southwest Airlines during the 4th quarter valued at approximately $29,000. ICA Group Wealth Management LLC acquired a new position in shares of Southwest Airlines in the 4th quarter valued at $29,000. Ashton Thomas Private Wealth LLC purchased a new position in Southwest Airlines in the 2nd quarter worth $29,000. CVA Family Office LLC lifted its position in Southwest Airlines by 179.5% during the 2nd quarter. CVA Family Office LLC now owns 1,034 shares of the airline’s stock worth $30,000 after acquiring an additional 664 shares during the period. Finally, Pineridge Advisors LLC purchased a new stake in Southwest Airlines during the 4th quarter valued at about $32,000. 80.82% of the stock is currently owned by institutional investors and hedge funds.

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.