UBS has recently resumed Southwest Airlines Co (LUV) stock to Sell rating, as announced on November 26, 2024, according to Finviz. Earlier, on November 15, 2024, Goldman had resumed the stock to Sell, setting a price target of $28. BofA Securities also resumed Neutral rating with a price target of $33. Additionally, Jefferies raised Hold rating on October 9, 2024, with a target price of $32. TD Cowen analysts, in their report published on September 30, 2024, also reiterated Hold rating and set a price target of $19 for Southwest Airlines Co’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Southwest Airlines Co (LUV) Stock Trading Recap
On Tuesday, Southwest Airlines Co (LUV) stock saw a decline, ending the day at $32.98 which represents a decrease of $-0.02 or -0.06% from the prior close of $33. The stock opened at $33.06 and touched a low of $32.77 during the day, reaching a high of $33.65. The volume of shares traded was 7.75 million exceeding the average volume of 7.69 million.
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LUV Stock Performance and Moving Averages
In recent trading, Southwest Airlines Co (LUV) stock price has shown some volatility, fluctuating 1.70% over the last five trades and 7.74% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 18.63%, and it has gained 11.76% in the previous three months. Currently, LUV is trading at 2.67%, 6.31%, and 13.37% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, LUV, a Industrials sector stock, is trading -6.25% below its 52-week high but remains 39.86% above its 52-week low. The Average True Range (ATR) (14 days) of 0.83 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Southwest Airlines Co’s Profitability and Valuation Ratios
Southwest Airlines Co’s profitability metrics reveal financial health. The company currently boasts an operating margin of -0.46% and a profit margin of -0.06%, with a gross margin of 18.63%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Southwest Airlines Co’s market capitalization stands at $19.78 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The forward P/E ratio, which uses projected earnings for the next financial year, is 20.97. Additionally, the Price-to-Sales Ratio is 0.72, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 1.9, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 1.06% of Southwest Airlines Co (LUV)’s shares, while financial institutions hold 90.33%.
Notable insider trades include Elliott Investment Management, 10% Owner at Southwest Airlines Co (LUV), who sold 1203920 shares on Oct 28 ’24, at $29.83 each, totaling $35.91 million.
