Evercore ISI Issues Positive Forecast for Southwest Airlines (NYSE:LUV) Stock Price

Key Points

• Evercore ISI has raised the price target for Southwest Airlines from $34.00 to $35.00, suggesting a potential upside of 7.84% from the stock's previous close.
• Southwest Airlines is undergoing mixed analyst ratings, with five analysts rating it as a Buy, nine as a Hold, and four as a Sell, leading to a consensus price target of $33.44.
• The company's Board of Directors approved a $2.00 billion share repurchase plan, indicating a belief that its stock is undervalued.

Southwest Airlines (NYSE:LUV - Get Free Report) had its price objective increased by equities research analysts at Evercore ISI from $34.00 to $35.00 in a research report issued to clients and investors on Monday,Benzinga reports. The firm presently has an "in-line" rating on the airline's stock. Evercore ISI's price objective indicates a potential upside of 7.84% from the stock's previous close.

Other equities research analysts also recently issued research reports about the stock. UBS Group upped their target price on shares of Southwest Airlines from $27.00 to $34.00 and gave the company a "neutral" rating in a research note on Monday, July 7th. HSBC downgraded shares of Southwest Airlines from a "hold" rating to a "reduce" rating in a research note on Thursday, July 24th. Barclays upped their target price on shares of Southwest Airlines from $26.00 to $34.00 and gave the company an "equal weight" rating in a research note on Thursday, July 10th. Hsbc Global Res upgraded shares of Southwest Airlines to a "moderate sell" rating in a report on Thursday, July 24th. Finally, Susquehanna upped their price target on shares of Southwest Airlines from $25.00 to $30.00 and gave the company a "neutral" rating in a report on Tuesday, August 5th. Five analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have given a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $33.44.

Southwest Airlines Trading Down 0.2%

Shares of LUV traded down $0.08 on Monday, reaching $32.46. 2,119,167 shares of the company's stock were exchanged, compared to its average volume of 11,264,436. Southwest Airlines has a 12 month low of $23.82 and a 12 month high of $37.96. The company has a current ratio of 0.56, a quick ratio of 0.49 and a debt-to-equity ratio of 0.51. The stock has a market capitalization of $17.05 billion, a P/E ratio of 49.18, a price-to-earnings-growth ratio of 0.84 and a beta of 1.19. The business has a 50 day moving average price of $31.96 and a two-hundred day moving average price of $31.52.

Southwest Airlines (NYSE:LUV - Get Free Report) last issued its earnings results on Wednesday, July 23rd. The airline reported $0.43 EPS for the quarter, missing the consensus estimate of $0.51 by ($0.08). Southwest Airlines had a net margin of 1.43% and a return on equity of 6.27%. The firm had revenue of $7.24 billion during the quarter, compared to the consensus estimate of $7.30 billion. During the same period in the previous year, the company posted $0.58 EPS. The firm's revenue for the quarter was down 2.1% on a year-over-year basis. Research analysts anticipate that Southwest Airlines will post 1.55 earnings per share for the current year.

Southwest Airlines announced that its Board of Directors has approved a share repurchase plan on Wednesday, July 23rd that permits the company to repurchase $2.00 billion in shares. This repurchase authorization permits the airline to buy up to 9.4% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's board of directors believes its stock is undervalued.

Insider Activity

In related news, Director Gregg A. Saretsky acquired 3,345 shares of the company's stock in a transaction dated Wednesday, August 6th. The shares were bought at an average cost of $30.03 per share, with a total value of $100,450.35. Following the completion of the transaction, the director directly owned 23,644 shares of the company's stock, valued at $710,029.32. This trade represents a 16.48% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Sarah Feinberg acquired 1,500 shares of the company's stock in a transaction dated Tuesday, August 5th. The stock was bought at an average cost of $30.01 per share, for a total transaction of $45,015.00. Following the completion of the transaction, the director directly owned 14,229 shares of the company's stock, valued at approximately $427,012.29. This trade represents a 11.78% increase in their ownership of the stock. The disclosure for this purchase can be found here. 0.79% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Southwest Airlines

A number of hedge funds have recently bought and sold shares of LUV. Elevation Point Wealth Partners LLC bought a new position in Southwest Airlines during the second quarter worth about $25,000. Caitong International Asset Management Co. Ltd bought a new position in Southwest Airlines during the second quarter worth about $31,000. Pandora Wealth Inc. bought a new position in Southwest Airlines during the first quarter worth about $34,000. Hantz Financial Services Inc. increased its position in Southwest Airlines by 81.4% during the second quarter. Hantz Financial Services Inc. now owns 1,056 shares of the airline's stock worth $34,000 after acquiring an additional 474 shares during the period. Finally, Cheviot Value Management LLC bought a new position in Southwest Airlines during the first quarter worth about $42,000. 80.82% of the stock is 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.

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