UBS Group Cuts Southwest Airlines (NYSE:LUV) Price Target to $27.00

Southwest Airlines (NYSE:LUV - Free Report) had its target price lowered by UBS Group from $36.00 to $27.00 in a report published on Monday,Benzinga reports. UBS Group currently has a neutral rating on the airline's stock.

A number of other equities analysts have also recently commented on the stock. Morgan Stanley reaffirmed an "overweight" rating and set a $42.00 price target on shares of Southwest Airlines in a research note on Wednesday, December 11th. Melius raised Southwest Airlines from a "sell" rating to a "hold" rating in a research note on Thursday, March 20th. JPMorgan Chase & Co. raised their price target on Southwest Airlines from $25.00 to $30.00 and gave the stock an "underweight" rating in a research note on Tuesday, March 18th. Citigroup increased their target price on Southwest Airlines from $27.00 to $30.00 and gave the stock a "sell" rating in a research note on Friday, March 28th. Finally, Sanford C. Bernstein boosted their target price on shares of Southwest Airlines from $30.00 to $33.00 and gave the company a "market perform" rating in a research note on Wednesday, December 11th. Six investment analysts have rated the stock with a sell rating, ten have issued a hold rating and four have assigned a buy rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $31.27.

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Southwest Airlines Trading Up 1.6 %

LUV stock traded up $0.43 during midday trading on Monday, reaching $26.22. 13,412,639 shares of the company traded hands, compared to its average volume of 9,863,876. The firm has a market capitalization of $15.54 billion, a price-to-earnings ratio of 36.41, 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 has a 50 day moving average of $30.43 and a 200-day moving average of $31.45. 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 results on Thursday, January 30th. The airline reported $0.56 earnings per share for the quarter, beating the consensus estimate 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, sell-side analysts expect that Southwest Airlines will post 1.55 earnings per share for the current fiscal year.

Southwest Airlines Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, April 2nd. Shareholders of record on Wednesday, March 12th were issued a $0.18 dividend. The ex-dividend date of this dividend was Wednesday, March 12th. This represents a $0.72 dividend on an annualized basis and a yield of 2.75%. Southwest Airlines's dividend payout ratio is presently 100.00%.

Insider Activity

In other Southwest Airlines news, Director C. David Cush purchased 5,000 shares of Southwest Airlines stock in a transaction dated Wednesday, March 12th. The shares were acquired at an average cost of $30.03 per share, with a total value of $150,150.00. Following the completion of the transaction, the director now owns 19,011 shares in the company, valued at approximately $570,900.33. This trade represents a 35.69 % increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Company insiders own 0.33% of the company's stock.

Institutional Trading of Southwest Airlines

Large investors have recently added to or reduced their stakes in the company. Janus Henderson Group PLC increased its stake in shares of Southwest Airlines by 44.3% in the third quarter. Janus Henderson Group PLC now owns 37,793 shares of the airline's stock worth $1,120,000 after acquiring an additional 11,600 shares during the period. IHT Wealth Management LLC boosted its holdings in Southwest Airlines by 26.2% in the third quarter. IHT Wealth Management LLC now owns 13,761 shares of the airline's stock valued at $408,000 after purchasing an additional 2,856 shares during the last quarter. Quarry LP acquired a new stake in Southwest Airlines during the 3rd quarter worth about $68,000. Weiss Asset Management LP purchased a new position in shares of Southwest Airlines during the 3rd quarter valued at about $528,000. Finally, Y Intercept Hong Kong Ltd acquired a new position in shares of Southwest Airlines in the 3rd quarter valued at about $2,387,000. Hedge funds and other institutional investors 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.