Southwest Airlines (NYSE:LUV) Stock Price Crosses Above Two Hundred Day Moving Average - What's Next?

Key Points

• Southwest shares rose above their 200-day moving average of $43.52, trading as high as $46.74 and last at $46.455.
• Analyst sentiment is mixed: the consensus rating is Hold, with an average price target of $48.20; 11 analysts rate the stock Buy, eight Hold, and four Sell.
• Southwest beat quarterly expectations, reporting EPS of $0.66 versus $0.57 expected and revenue of $8.42 billion, up 21.2% year over year.

Southwest Airlines Co. (NYSE:LUV - Get Free Report) shares crossed above its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $43.52 and traded as high as $46.74. Southwest Airlines shares last traded at $46.4550, with a volume of 8,451,761 shares traded.

Analysts Set New Price Targets

A number of research firms recently issued reports on LUV. Wall Street Zen lowered Southwest Airlines from a "buy" rating to a "hold" rating in a research note on Saturday, September 5th. TD Cowen raised their price target on Southwest Airlines from $47.00 to $48.00 and gave the stock a "buy" rating in a research report on Thursday, October 29th. Citigroup cut their price target on Southwest Airlines from $55.00 to $50.00 and set a "neutral" rating for the company in a report on Friday, July 24th. Zacks Research downgraded Southwest Airlines from a "hold" rating to a "strong sell" rating in a research report on Tuesday, October 6th. Finally, Weiss Ratings raised Southwest Airlines from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, October 23rd. Eleven research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $48.20.

Southwest Airlines Price Performance

The company's 50 day simple moving average is $40.99 and its 200 day simple moving average is $43.52. The company has a current ratio of 0.47, a quick ratio of 0.40 and a debt-to-equity ratio of 0.51. The stock has a market capitalization of $22.74 billion, a PE ratio of 22.33, a PEG ratio of 0.63 and a beta of 1.23.

Southwest Airlines (NYSE:LUV - Get Free Report) last announced its quarterly earnings data on Wednesday, October 21st. The airline reported $0.66 earnings per share for the quarter, topping the consensus estimate of $0.57 by $0.09. Southwest Airlines had a net margin of 3.34% and a return on equity of 18.05%. The business had revenue of $8.42 billion for the quarter, compared to analyst estimates of $8.25 billion. During the same period in the prior year, the firm posted $0.11 EPS. The company's revenue was up 21.2% on a year-over-year basis. On average, equities analysts anticipate that Southwest Airlines Co. will post 2.77 earnings per share for the current year.

Institutional Trading of Southwest Airlines

Several institutional investors have recently made changes to their positions in LUV. Keybank National Association OH lifted its stake in Southwest Airlines by 17.0% in the third quarter. Keybank National Association OH now owns 7,026 shares of the airline's stock valued at $293,000 after buying an additional 1,021 shares during the last quarter. M&G PLC increased its holdings in shares of Southwest Airlines by 1.7% in the 3rd quarter. M&G PLC now owns 515,915 shares of the airline's stock worth $21,668,000 after acquiring an additional 8,572 shares during the period. AlphaCore Capital LLC boosted its stake in Southwest Airlines by 28.5% during the 3rd quarter. AlphaCore Capital LLC now owns 22,675 shares of the airline's stock valued at $944,000 after purchasing an additional 5,029 shares during the period. Fulcrum Asset Management LLP acquired a new position in Southwest Airlines during the 3rd quarter valued at about $2,245,000. Finally, Allspring Global Investments Holdings LLC grew its position in Southwest Airlines by 20.0% in the 3rd quarter. Allspring Global Investments Holdings LLC now owns 553,012 shares of the airline's stock worth $23,138,000 after purchasing an additional 92,351 shares during the last quarter. 80.82% of the stock is owned by hedge funds and other 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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