Verdence Capital Advisors LLC Sells 58,551 Shares of Southwest Airlines Co. $LUV

Key Points

• Verdence Capital Advisors reduced its Southwest Airlines position by 85.7% in the third quarter, selling 58,551 shares and retaining 9,789 shares valued at approximately $408,000.
• Southwest reported quarterly earnings of $0.66 per share, exceeding the $0.57 analyst consensus, while revenue rose 21.2% year over year to $8.42 billion.
• Analysts have a consensus “Hold” rating and an average price target of $47.51, with several firms recently lowering their targets despite maintaining positive or neutral ratings.

Verdence Capital Advisors LLC lowered its position in Southwest Airlines Co. (NYSE:LUV - Free Report) by 85.7% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 9,789 shares of the airline's stock after selling 58,551 shares during the quarter. Verdence Capital Advisors LLC's holdings in Southwest Airlines were worth $408,000 at the end of the most recent reporting period.

Several other large investors have also modified their holdings of the business. Archer Investment Corp purchased a new position in shares of Southwest Airlines during the 2nd quarter worth approximately $32,000. Fiduciary Financial Advisors acquired a new stake in shares of Southwest Airlines in the second quarter valued at $32,000. Scarborough Advisors LLC purchased a new stake in Southwest Airlines during the first quarter worth about $28,000. Grove Bank & Trust boosted its position in Southwest Airlines by 109.4% in the 2nd quarter. Grove Bank & Trust now owns 871 shares of the airline's stock valued at $45,000 after buying an additional 455 shares during the period. Finally, MidFirst Bank purchased a new position in Southwest Airlines in the second quarter valued at $48,000. Institutional investors and hedge funds own 80.82% of the company's stock.

Southwest Airlines Stock Performance

Shares of LUV stock opened at $42.41 on Friday. Southwest Airlines Co. has a 52-week low of $29.26 and a 52-week high of $55.11. The stock's 50-day moving average price is $40.75 and its 200 day moving average price is $43.49. The company has a quick ratio of 0.40, a current ratio of 0.47 and a debt-to-equity ratio of 0.51. The stock has a market capitalization of $20.76 billion, a PE ratio of 16.61, a price-to-earnings-growth ratio of 0.64 and a beta of 1.16.

Southwest Airlines (NYSE:LUV - Get Free Report) last announced its quarterly earnings data on Wednesday, October 21st. The airline reported $0.66 EPS for the quarter, topping analysts' consensus estimates of $0.57 by $0.09. Southwest Airlines had a net margin of 3.34% and a return on equity of 18.05%. The company had revenue of $8.42 billion during the quarter, compared to the consensus estimate of $8.25 billion. During the same quarter in the prior year, the firm earned $0.11 EPS. Southwest Airlines's quarterly revenue was up 21.2% on a year-over-year basis. As a group, equities research analysts forecast that Southwest Airlines Co. will post 2.75 EPS for the current year.

Analysts Set New Price Targets

Several equities research analysts have weighed in on the company. BMO Capital Markets cut their price target on Southwest Airlines from $60.00 to $50.00 and set an "outperform" rating on the stock in a report on Monday, September 28th. Susquehanna decreased their price target on Southwest Airlines from $50.00 to $45.00 and set a "neutral" rating for the company in a report on Wednesday, October 7th. Barclays cut their target price on Southwest Airlines from $65.00 to $58.00 and set an "overweight" rating on the stock in a research report on Friday, September 11th. Morgan Stanley upped their price target on Southwest Airlines from $60.00 to $65.00 and gave the company an "overweight" rating in a report on Monday, July 6th. Finally, Weiss Ratings upgraded shares of Southwest Airlines from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday, October 23rd. Ten equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have given a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $47.51.

About Southwest Airlines

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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