UBS Group Issues Pessimistic Forecast for Southwest Airlines (NYSE:LUV) Stock Price

Southwest Airlines (NYSE:LUV) had its target price cut by UBS Group from $36.00 to $27.00 in a research report issued on Monday,Benzinga reports. The brokerage presently has a “neutral” rating on the airline’s stock. UBS Group’s price objective suggests a potential upside of 3.40% from the company’s current price.

LUV has been the subject of several other research reports. Jefferies Financial Group cut shares of Southwest Airlines from a “hold” rating to an “underperform” rating and set a $28.00 price objective for the company. in a research report on Tuesday, April 1st. Morgan Stanley restated an “overweight” rating and issued a $42.00 price objective on shares of Southwest Airlines in a research report on Wednesday, December 11th. Bank of America reiterated an “underperform” rating and issued a $31.00 price objective (down from $33.00) on shares of Southwest Airlines in a research report on Friday, January 17th. Sanford C. Bernstein boosted their target price on Southwest Airlines from $30.00 to $33.00 and gave the stock a “market perform” rating in a research report on Wednesday, December 11th. Finally, Raymond James raised their price target on Southwest Airlines from $40.00 to $42.00 and gave the company an “outperform” rating in a report on Wednesday, April 2nd. Six investment analysts have rated the stock with a sell rating, ten have assigned a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $31.43.

Southwest Airlines Price Performance

Shares of NYSE:LUV traded up $0.24 during trading on Monday, reaching $26.11. The stock had a trading volume of 10,201,961 shares, compared to its average volume of 9,662,827. The stock has a market capitalization of $15.47 billion, a PE ratio of 36.25, a P/E/G ratio of 0.97 and a beta of 0.94. Southwest Airlines has a 52 week low of $23.58 and a 52 week high of $36.12. The business’s 50-day moving average price is $31.13 and its 200 day moving average price is $31.62. The company has a debt-to-equity ratio of 0.49, a current ratio of 0.92 and a quick ratio of 0.85.

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

Insider Activity

In related news, Director C. David Cush acquired 5,000 shares of the company’s stock in a transaction that occurred on Wednesday, March 12th. The shares were acquired at an average cost of $30.03 per share, for a total transaction of $150,150.00. Following the completion of the acquisition, the director now directly owns 19,011 shares in the company, valued at approximately $570,900.33. The trade was a 35.69 % increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 0.33% of the stock is currently owned by company insiders.

Institutional Trading of Southwest Airlines

Several hedge funds and other institutional investors have recently modified their holdings of LUV. Kestra Investment Management LLC bought a new stake in Southwest Airlines during the 4th quarter worth about $26,000. Raleigh Capital Management Inc. grew its stake in Southwest Airlines by 186.7% in the fourth quarter. Raleigh Capital Management Inc. now owns 883 shares of the airline’s stock valued at $30,000 after purchasing an additional 575 shares in the last quarter. Sanctuary Wealth Management L.L.C. increased its position in shares of Southwest Airlines by 196.3% during the 4th quarter. Sanctuary Wealth Management L.L.C. now owns 889 shares of the airline’s stock worth $30,000 after purchasing an additional 589 shares during the last quarter. TD Private Client Wealth LLC raised its stake in shares of Southwest Airlines by 41.1% during the 3rd quarter. TD Private Client Wealth LLC now owns 1,184 shares of the airline’s stock worth $35,000 after purchasing an additional 345 shares in the last quarter. Finally, VSM Wealth Advisory LLC acquired a new stake in shares of Southwest Airlines in the 4th quarter valued at approximately $42,000. Institutional investors and hedge funds own 80.82% of the company’s stock.

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.