Jefferies Financial Group Downgrades Southwest Airlines (NYSE:LUV) to Underperform

Jefferies Financial Group downgraded shares of Southwest Airlines (NYSE:LUV - Free Report) from a hold rating to an underperform rating in a research note issued to investors on Tuesday morning, Marketbeat Ratings reports. They currently have $28.00 target price on the airline's stock.

A number of other research firms have also recently commented on LUV. Barclays lifted their target price on Southwest Airlines from $32.00 to $35.00 and gave the stock an "equal weight" rating in a research report on Friday, December 6th. Citigroup lifted their price target on Southwest Airlines from $27.00 to $30.00 and gave the stock a "sell" rating in a research report on Friday, March 28th. Morgan Stanley reissued an "overweight" rating and issued a $42.00 price objective on shares of Southwest Airlines in a report on Wednesday, December 11th. UBS Group raised shares of Southwest Airlines from a "sell" rating to a "neutral" rating and lifted their target price for the company from $29.00 to $36.00 in a report on Thursday, March 20th. Finally, Argus raised shares of Southwest Airlines from a "hold" rating to a "buy" rating and set a $35.00 price objective on the stock in a research report on Tuesday, February 11th. Six 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's stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and an average target price of $32.43.

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Southwest Airlines Stock Up 1.0 %

Shares of NYSE:LUV traded up $0.32 on Tuesday, hitting $31.91. 10,155,294 shares of the company's stock were exchanged, compared to its average volume of 9,548,721. The firm's 50-day moving average is $31.32 and its 200 day moving average is $31.62. The company has a market capitalization of $18.91 billion, a PE ratio of 44.32, a P/E/G ratio of 0.97 and a beta of 1.10. Southwest Airlines has a 1-year low of $23.58 and a 1-year high of $36.12. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.85 and a current ratio of 0.92.

Southwest Airlines (NYSE:LUV - Get Free Report) last released 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%. Sell-side analysts predict that Southwest Airlines will post 1.55 EPS for the current year.

Southwest Airlines Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 2nd. Shareholders of record on Wednesday, March 12th will be given a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a yield of 2.26%. The ex-dividend date of this dividend is Wednesday, March 12th. Southwest Airlines's payout ratio is currently 100.00%.

Insider Transactions at Southwest Airlines

In related 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, for a total transaction of $150,150.00. Following the acquisition, the director now owns 19,011 shares in the company, valued at $570,900.33. This represents a 35.69 % increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. Corporate insiders own 0.33% of the company's stock.

Institutional Trading of Southwest Airlines

Several institutional investors and hedge funds have recently made changes to their positions in LUV. Kestra Investment Management LLC purchased a new position in Southwest Airlines in the 4th quarter valued at about $26,000. Raleigh Capital Management Inc. lifted its stake in shares of Southwest Airlines by 186.7% during the fourth quarter. Raleigh Capital Management Inc. now owns 883 shares of the airline's stock valued at $30,000 after buying an additional 575 shares during the period. Sanctuary Wealth Management L.L.C. boosted its position in Southwest Airlines by 196.3% during the fourth quarter. Sanctuary Wealth Management L.L.C. now owns 889 shares of the airline's stock worth $30,000 after acquiring an additional 589 shares during the last quarter. TD Private Client Wealth LLC grew its stake in Southwest Airlines by 41.1% in the 3rd quarter. TD Private Client Wealth LLC now owns 1,184 shares of the airline's stock worth $35,000 after acquiring an additional 345 shares during the period. Finally, VSM Wealth Advisory LLC acquired a new position in Southwest Airlines in the 4th quarter valued at $42,000. 80.82% of the stock is currently owned by hedge funds and other institutional investors.

About Southwest Airlines

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.