Citigroup Trims Southwest Airlines (NYSE:LUV) Target Price to $28.25

Southwest Airlines (NYSE:LUV) had its price objective cut by Citigroup from $29.00 to $28.25 in a research note issued to investors on Monday, Benzinga reports. They currently have a neutral rating on the airline’s stock.

Other equities research analysts also recently issued research reports about the stock. HSBC started coverage on shares of Southwest Airlines in a research note on Monday, May 13th. They set a hold rating and a $27.80 price target on the stock. Barclays lifted their price target on shares of Southwest Airlines from $26.00 to $27.00 and gave the stock an equal weight rating in a research note on Wednesday, July 10th. Melius reiterated a sell rating and set a $26.00 price target on shares of Southwest Airlines in a research note on Monday, June 10th. TD Cowen decreased their price target on shares of Southwest Airlines from $26.00 to $19.00 and set a hold rating on the stock in a research note on Wednesday, July 17th. Finally, Raymond James reiterated an outperform rating and set a $30.00 price target (down previously from $33.00) on shares of Southwest Airlines in a research note on Friday, April 26th. Five research analysts have rated the stock with a sell rating, ten have issued a hold rating and three have assigned a buy rating to the company. According to MarketBeat.com, Southwest Airlines currently has an average rating of Hold and a consensus price target of $28.50.

Southwest Airlines Trading Down 2.2 %

Shares of LUV stock opened at $26.36 on Monday. Southwest Airlines has a 1 year low of $21.91 and a 1 year high of $35.18. The firm’s fifty day simple moving average is $27.72 and its 200 day simple moving average is $29.12. The firm has a market capitalization of $15.79 billion, a P/E ratio of 41.84, a price-to-earnings-growth ratio of 19.88 and a beta of 1.15. The company has a current ratio of 0.90, a quick ratio of 0.85 and a debt-to-equity ratio of 0.48.

Southwest Airlines (NYSE:LUV) last announced its earnings results on Thursday, July 25th. The airline reported $0.58 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.51 by $0.07. Southwest Airlines had a net margin of 0.41% and a return on equity of 5.92%. The business had revenue of $7.40 billion for the quarter, compared to analyst estimates of $7.32 billion. During the same quarter in the previous year, the firm posted $1.09 earnings per share. Southwest Airlines’s revenue was up 5.2% compared to the same quarter last year. As a group, sell-side analysts predict that Southwest Airlines will post 0.29 EPS for the current year.

Southwest Airlines Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 25th. Investors of record on Wednesday, September 4th will be given a dividend of $0.18 per share. The ex-dividend date of this dividend is Wednesday, September 4th. This represents a $0.72 annualized dividend and a yield of 2.73%. Southwest Airlines’s dividend payout ratio (DPR) is 114.29%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Rhumbline Advisers raised its holdings in Southwest Airlines by 1.3% during the 2nd quarter. Rhumbline Advisers now owns 1,107,507 shares of the airline’s stock worth $31,686,000 after purchasing an additional 14,017 shares during the last quarter. PrairieView Partners LLC bought a new stake in Southwest Airlines during the 2nd quarter worth about $107,000. Natixis Advisors LLC raised its holdings in Southwest Airlines by 60.5% during the 2nd quarter. Natixis Advisors LLC now owns 72,461 shares of the airline’s stock worth $2,073,000 after purchasing an additional 27,314 shares during the last quarter. AM Squared Ltd bought a new stake in Southwest Airlines during the 2nd quarter worth about $37,000. Finally, Bellwether Advisors LLC bought a new stake in Southwest Airlines during the 2nd quarter worth about $2,937,000. 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.