Southwest Airlines (NYSE:LUV) Price Target Raised to $48.00

Key Points

• TD Cowen raised Southwest Airlines’ price target to $48 from $47 and maintained a “buy” rating, implying 10.61% upside from the prior close.
• Analyst opinion remains mixed: Southwest has an average “hold” rating and a consensus price target of $47.51, with 10 buy, eight hold, and four sell ratings.
• Southwest reported quarterly earnings of $0.66 per share, surpassing the $0.57 consensus estimate, while revenue of $8.42 billion also exceeded expectations; institutional investors own 80.82% of the stock.

Southwest Airlines (NYSE:LUV - Get Free Report) had its target price raised by investment analysts at TD Cowen from $47.00 to $48.00 in a note issued to investors on Thursday, Benzinga reports. The firm presently has a "buy" rating on the airline's stock. TD Cowen's price target would indicate a potential upside of 10.61% from the company's previous close.

A number of other equities research analysts have also recently commented on LUV. The Goldman Sachs Group raised their price target on Southwest Airlines from $30.00 to $35.00 and gave the company a "sell" rating in a report on Thursday, July 2nd. Morgan Stanley upped their price objective on Southwest Airlines from $60.00 to $65.00 and gave the stock an "overweight" rating in a research note on Monday, July 6th. JPMorgan Chase & Co. cut their target price on Southwest Airlines from $59.00 to $58.00 and set an "overweight" rating for the company in a research report on Friday, October 23rd. Bank of America boosted their price target on Southwest Airlines from $40.00 to $45.00 and gave the stock an "underperform" rating in a report on Wednesday, July 1st. Finally, Rothschild & Co Redburn upgraded Southwest Airlines from a "sell" rating to a "neutral" rating and upped their price target for the stock from $35.00 to $40.00 in a research note on Friday, September 18th. Ten analysts have rated the stock with a Buy rating, eight have issued a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat, Southwest Airlines currently has an average rating of "Hold" and an average target price of $47.51.

Southwest Airlines Price Performance

NYSE:LUV traded down $0.08 during trading hours on Thursday, hitting $43.39. 1,765,070 shares of the stock traded hands, compared to its average volume of 7,414,160. The company has a quick ratio of 0.40, a current ratio of 0.47 and a debt-to-equity ratio of 0.51. Southwest Airlines has a 1 year low of $29.26 and a 1 year high of $55.11. The company has a market cap of $21.25 billion, a price-to-earnings ratio of 20.83, a price-to-earnings-growth ratio of 1.19 and a beta of 1.16. The stock has a 50 day moving average price of $40.66 and a 200 day moving average price of $43.50.

Southwest Airlines (NYSE:LUV - Get Free Report) last posted its quarterly earnings results on Wednesday, October 21st. The airline reported $0.66 earnings per share for the quarter, topping analysts' consensus estimates of $0.57 by $0.09. The business had revenue of $8.42 billion during the quarter, compared to analyst estimates of $8.25 billion. Southwest Airlines had a net margin of 3.34% and a return on equity of 18.05%. The company's revenue was up 21.2% on a year-over-year basis. During the same period in the prior year, the business posted $0.11 earnings per share. Sell-side analysts forecast that Southwest Airlines will post 2.75 EPS for the current fiscal year.

Institutional Trading of Southwest Airlines

A number of large investors have recently made changes to their positions in the business. NewEdge Advisors LLC grew its position in shares of Southwest Airlines by 954.1% in the 1st quarter. NewEdge Advisors LLC now owns 127,331 shares of the airline's stock worth $4,784,000 after buying an additional 115,251 shares during the last quarter. Gradient Investments LLC raised its stake in shares of Southwest Airlines by 19.3% during the 2nd quarter. Gradient Investments LLC now owns 539,612 shares of the airline's stock worth $27,747,000 after acquiring an additional 87,146 shares in the last quarter. WINTON GROUP Ltd lifted its position in Southwest Airlines by 218.8% during the second quarter. WINTON GROUP Ltd now owns 93,837 shares of the airline's stock valued at $4,825,000 after acquiring an additional 64,402 shares during the last quarter. PDT Partners LLC purchased a new stake in Southwest Airlines during the second quarter valued at approximately $17,913,000. Finally, Bank of New York Mellon Corp lifted its position in Southwest Airlines by 4.7% during the first quarter. Bank of New York Mellon Corp now owns 3,924,407 shares of the airline's stock valued at $147,440,000 after acquiring an additional 176,742 shares during the last quarter. 80.82% of the stock is currently owned by institutional investors.

Southwest Airlines Company Profile

Southwest Airlines Co is a major U.S. passenger airline headquartered in Dallas, Texas. The company provides scheduled air transportation for leisure and business travelers, with service connecting cities throughout the United States and selected destinations in Mexico, the Caribbean, and Central America.

Southwest is known for its predominantly domestic network and point-to-point operating model. In addition to passenger flights, the company offers ancillary services and air cargo transportation.

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