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Southwest Airlines (NYSE:LUV) Cut to Reduce at HSBC

Southwest Airlines logo with Transportation background

Southwest Airlines (NYSE:LUV - Get Free Report) was downgraded by research analysts at HSBC from a "hold" rating to a "reduce" rating in a research note issued to investors on Thursday,Briefing.com Automated Import reports.

Other equities analysts have also issued research reports about the stock. Citigroup reduced their target price on shares of Southwest Airlines from $30.00 to $23.00 and set a "sell" rating on the stock in a report on Monday, April 14th. Barclays upped their price target 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. Deutsche Bank Aktiengesellschaft upgraded shares of Southwest Airlines from a "hold" rating to a "buy" rating and set a $40.00 price target on the stock in a report on Thursday, May 29th. Jefferies Financial Group upgraded shares of Southwest Airlines from an "underperform" rating to a "hold" rating and increased their price target for the stock from $24.00 to $33.00 in a report on Tuesday, May 27th. Finally, Susquehanna reduced their price objective on shares of Southwest Airlines from $34.00 to $25.00 and set a "neutral" rating on the stock in a report on Monday, April 7th. Six equities research analysts have rated the stock with a sell rating, ten have assigned a hold rating and four have issued a buy rating to the company. Based on data from MarketBeat, the company has an average rating of "Hold" and an average price target of $33.13.

Read Our Latest Stock Analysis on Southwest Airlines

Southwest Airlines Price Performance

NYSE LUV traded down $4.64 on Thursday, reaching $32.80. 28,162,160 shares of the stock traded hands, compared to its average volume of 11,903,679. The company has a quick ratio of 0.72, a current ratio of 0.77 and a debt-to-equity ratio of 0.44. Southwest Airlines has a 12 month low of $23.58 and a 12 month high of $37.96. The company has a market cap of $18.69 billion, a price-to-earnings ratio of 38.55, a P/E/G ratio of 5.64 and a beta of 1.21. The firm's fifty day simple moving average is $33.48 and its 200 day simple moving average is $31.34.

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 1.98% and a return on equity of 7.27%. The business had revenue of $7.24 billion for the quarter, compared to the consensus estimate of $7.30 billion. During the same quarter in the previous year, the firm posted $0.58 EPS. The business's revenue was down 2.1% on a year-over-year basis. As a group, research analysts predict that Southwest Airlines will post 1.55 EPS for the current fiscal year.

Southwest Airlines declared that its Board of Directors has approved a stock repurchase plan on Wednesday, July 23rd that permits the company to buyback $2.00 billion in outstanding shares. This buyback authorization permits the airline to purchase up to 9.4% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its stock is undervalued.

Insider Buying and Selling

In other news, Director David P. Hess acquired 7,500 shares of the business's stock in a transaction on Monday, April 28th. The stock was bought at an average price of $26.52 per share, for a total transaction of $198,900.00. Following the transaction, the director owned 23,156 shares in the company, valued at $614,097.12. This represents a 47.90% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Gregg A. Saretsky purchased 3,670 shares of the firm's stock in a transaction on Wednesday, April 30th. The shares were purchased at an average cost of $27.29 per share, for a total transaction of $100,154.30. Following the completion of the purchase, the director directly owned 14,881 shares in the company, valued at $406,102.49. The trade was a 32.74% increase in their ownership of the stock. The disclosure for this purchase can be found here. 0.79% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Southwest Airlines

Several institutional investors have recently made changes to their positions in the company. Sanctuary Wealth Management L.L.C. grew its stake 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 valued at $30,000 after purchasing an additional 589 shares in the last quarter. Pandora Wealth Inc. bought a new position in shares of Southwest Airlines in the first quarter valued at approximately $34,000. Cheviot Value Management LLC bought a new stake in Southwest Airlines during the first quarter worth $42,000. Armstrong Advisory Group Inc. purchased a new position in shares of Southwest Airlines in the second quarter valued at $42,000. Finally, TD Private Client Wealth LLC grew its position in Southwest Airlines by 67.8% during the second quarter. TD Private Client Wealth LLC now owns 1,448 shares of the airline's stock worth $47,000 after buying an additional 585 shares in the last quarter. 80.82% of the stock is currently owned by institutional investors and hedge funds.

Southwest Airlines Company Profile

(Get Free Report)

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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Analyst Recommendations for Southwest Airlines (NYSE:LUV)

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.

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