Southwest Airlines (NYSE:LUV) Stock Price Down 4.5% - What's Next?

Southwest Airlines Co. (NYSE:LUV - Get Free Report)'s stock price dropped 4.5% during trading on Thursday . The company traded as low as $31.31 and last traded at $31.33. Approximately 2,290,800 shares traded hands during mid-day trading, a decline of 62% from the average daily volume of 5,982,328 shares. The stock had previously closed at $32.80.

Analysts Set New Price Targets

Several research firms have weighed in on LUV. Citigroup restated a "sell" rating and set a $29.50 price target (down previously from $31.50) on shares of Southwest Airlines in a report on Thursday. JPMorgan Chase & Co. raised their target price on shares of Southwest Airlines from $20.00 to $26.00 and gave the company a "neutral" rating in a report on Friday, October 25th. TD Cowen boosted their price target on shares of Southwest Airlines from $25.00 to $28.00 and gave the stock a "hold" rating in a research report on Friday, December 6th. Morgan Stanley reiterated an "overweight" rating and set a $42.00 price objective on shares of Southwest Airlines in a research report on Wednesday, December 11th. Finally, Raymond James boosted their target price on shares of Southwest Airlines from $36.00 to $40.00 and gave the stock an "outperform" rating in a report on Monday, December 30th. Six analysts have rated the stock with a sell rating, ten have assigned a hold rating and three have assigned a buy rating to the company. According to data from MarketBeat.com, Southwest Airlines has an average rating of "Hold" and an average price target of $32.31.

Southwest Airlines Trading Up 0.1 %

The stock has a fifty day moving average of $33.01 and a 200-day moving average of $30.10. The company has a market cap of $19.31 billion, a PE ratio of -459.90, a PEG ratio of 3.27 and a beta of 1.14. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.83 and a current ratio of 0.88.

Southwest Airlines (NYSE:LUV - Get Free Report) last issued its earnings results on Thursday, October 24th. The airline reported $0.15 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.05 by $0.10. The firm had revenue of $6.87 billion during the quarter, compared to analyst estimates of $6.77 billion. Southwest Airlines had a negative net margin of 0.06% and a positive return on equity of 4.56%. The business's revenue was up 5.3% on a year-over-year basis. During the same period in the previous year, the firm earned $0.38 earnings per share. Sell-side analysts anticipate that Southwest Airlines Co. will post 0.81 EPS for the current fiscal year.

Southwest Airlines Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, January 16th. Shareholders of record on Thursday, December 26th were paid a $0.18 dividend. The ex-dividend date of this dividend was Thursday, December 26th. This represents a $0.72 dividend on an annualized basis and a yield of 2.24%. Southwest Airlines's dividend payout ratio is currently -1,028.57%.

Insider Activity

In other news, insider Linda B. Rutherford sold 3,849 shares of the firm's stock in a transaction on Friday, December 6th. The stock was sold at an average price of $34.40, for a total transaction of $132,405.60. Following the transaction, the insider now owns 89,376 shares in the company, valued at approximately $3,074,534.40. This trade represents a 4.13 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, major shareholder Elliott Investment Management sold 1,203,920 shares of Southwest Airlines stock in a transaction dated Monday, October 28th. The shares were sold at an average price of $29.83, for a total value of $35,912,933.60. Following the completion of the sale, the insider now owns 59,912,580 shares of the company's stock, valued at $1,787,192,261.40. The trade was a 1.97 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 0.33% of the company's stock.

Hedge Funds Weigh In On Southwest Airlines

A number of hedge funds and other institutional investors have recently modified their holdings of LUV. Raleigh Capital Management Inc. raised 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 worth $30,000 after buying an additional 575 shares in the last quarter. Ashton Thomas Securities LLC bought a new position in shares of Southwest Airlines in the 3rd quarter worth $33,000. TD Private Client Wealth LLC lifted 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 during the last quarter. CVA Family Office LLC boosted its position in Southwest Airlines by 60.6% during the third quarter. CVA Family Office LLC now owns 1,661 shares of the airline's stock valued at $49,000 after purchasing an additional 627 shares in the last quarter. Finally, MassMutual Private Wealth & Trust FSB grew its stake in Southwest Airlines by 34.1% in the fourth quarter. MassMutual Private Wealth & Trust FSB now owns 1,770 shares of the airline's stock valued at $60,000 after purchasing an additional 450 shares during the last quarter. 80.82% of the stock is currently 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.