Southwest Airlines (NYSE:LUV) Upgraded by Melius Research to Hold Rating

Melius Research upgraded shares of Southwest Airlines (NYSE:LUV) from a sell rating to a hold rating in a research report released on Thursday,Benzinga reports. The brokerage currently has $34.00 price target on the airline’s stock, up from their previous price target of $28.00.

A number of other brokerages also recently weighed in on LUV. Morgan Stanley reaffirmed an “overweight” rating and set a $42.00 price target on shares of Southwest Airlines in a report on Wednesday, December 11th. Bank of America reaffirmed an “underperform” rating and issued a $31.00 price objective (down previously from $33.00) on shares of Southwest Airlines in a research note on Friday, January 17th. Raymond James raised their target price on Southwest Airlines from $36.00 to $40.00 and gave the stock an “outperform” rating in a research report on Monday, December 30th. Citigroup restated a “sell” rating and issued a $29.50 price target (down previously from $31.50) on shares of Southwest Airlines in a research report on Thursday, January 16th. Finally, Sanford C. Bernstein raised their target price on Southwest Airlines from $30.00 to $33.00 and gave the stock a “market perform” rating in a research note on Wednesday, December 11th. Five equities research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and four have issued a buy rating to the company’s stock. According to data from MarketBeat.com, Southwest Airlines presently has a consensus rating of “Hold” and an average price target of $32.52.

Southwest Airlines Stock Up 1.7 %

Southwest Airlines stock opened at $34.16 on Thursday. The company has a current ratio of 0.92, a quick ratio of 0.85 and a debt-to-equity ratio of 0.49. The company has a fifty day simple moving average of $31.13 and a 200 day simple moving average of $31.33. The company has a market cap of $20.25 billion, a P/E ratio of 47.45, a price-to-earnings-growth 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.

Southwest Airlines (NYSE:LUV) last posted its earnings results 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 return on equity of 5.77% and a net margin of 1.69%. Research analysts anticipate that Southwest Airlines will post 1.55 earnings per share for the current fiscal year.

Southwest Airlines Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 2nd. Stockholders of record on Wednesday, March 12th will be given a $0.18 dividend. This represents a $0.72 annualized dividend and a dividend yield of 2.11%. The ex-dividend date of this dividend is Wednesday, March 12th. Southwest Airlines’s dividend payout ratio (DPR) is currently 100.00%.

Insider Transactions at Southwest Airlines

In other news, Director C. David Cush acquired 5,000 shares of Southwest Airlines stock in a transaction that occurred on Wednesday, March 12th. The stock was bought at an average price of $30.03 per share, with a total value of $150,150.00. Following the completion of the purchase, the director now owns 19,011 shares in the company, valued at approximately $570,900.33. The trade was 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 this link. Corporate insiders own 0.33% of the company’s stock.

Institutional Investors Weigh In On Southwest Airlines

Several large investors have recently added to or reduced their stakes in the business. Kestra Investment Management LLC purchased a new stake in Southwest Airlines in the fourth quarter valued at approximately $26,000. Raleigh Capital Management Inc. lifted its holdings in shares of Southwest Airlines by 186.7% during the 4th quarter. Raleigh Capital Management Inc. now owns 883 shares of the airline’s stock worth $30,000 after acquiring an additional 575 shares during the last quarter. Sanctuary Wealth Management L.L.C. grew its position in Southwest Airlines by 196.3% in 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 in the last quarter. TD Private Client Wealth LLC increased its stake in Southwest Airlines by 41.1% in the third quarter. TD Private Client Wealth LLC now owns 1,184 shares of the airline’s stock valued at $35,000 after acquiring an additional 345 shares during the last quarter. Finally, VSM Wealth Advisory LLC purchased a new stake in Southwest Airlines during the fourth quarter valued at about $42,000. 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.