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NYSE:LUV

Southwest Airlines (LUV) Stock Price, News & Analysis

$27.88
-0.09 (-0.32%)
(As of 05/22/2024 ET)
Today's Range
$27.69
$28.30
50-Day Range
$25.66
$29.73
52-Week Range
$21.91
$39.53
Volume
6.31 million shs
Average Volume
11.09 million shs
Market Capitalization
$16.69 billion
P/E Ratio
44.25
Dividend Yield
2.58%
Price Target
$30.10

Southwest Airlines MarketRank™ Stock Analysis

Analyst Rating
Hold
2.06 Rating Score
Upside/​Downside
8.0% Upside
$30.10 Price Target
Short Interest
Healthy
3.73% of Shares Sold Short
Dividend Strength
Weak
Based on Four Factors
Sustainability
-7.11
Upright™ Environmental Score
News Sentiment
0.33mentions of Southwest Airlines in the last 14 days
Based on 18 Articles This Week
Insider Trading
N/A
Proj. Earnings Growth
98.10%
From $1.05 to $2.08 Per Share

Overall MarketRank

New Rank-Based ScoringMarketRank is calculated by averaging available category scores (with extra weight given to analysis and valuation), then ranking the company's weighted average against that of other companies.

3.42 out of 5 stars

Transportation Sector

49th out of 110 stocks

Air Transportation, Scheduled Industry

10th out of 17 stocks

LUV stock logo

About Southwest Airlines Stock (NYSE:LUV)

Founded in 1971, Southwest Airlines Co. is one of the world's most respected and awarded airlines. The company is known for offering customers great value and excellent service. Currently, Southwest Airlines Co. services 121 airports in 11 countries. The year 2021 marked the company's 51st anniversary, and it continues to work toward democratizing the sky by providing a reliable, low-cost air travel experience. More air travelers flying nonstop in the U.S. fly Southwest Airlines Co. than any other major airline. 

Southwest Airlines operates a large fleet of 771 Boeing 737 aircraft, making it the largest owner and operator of 737s in the world. It has traditionally only flown Boeing 737s, though it has leased other Boeing models for profitability and route testing. Southwest Airlines Co.'s fleet serves 121 destinations in 42 states, the District of Columbia and the Commonwealth of Puerto Rico, as well as in 10 other countries, including Mexico, the Caribbean and Central America.

Southwest Airlines Co. is based in Dallas and is famous for its employee-first corporate culture. The company has maintained an unprecedented record of no involuntary furloughs or layoffs in its 51-year history, providing employees stability and pride in their employer. Southwest Airlines Co. has led the industry with 47 consecutive years of profitability and growth.

Southwest Airlines Co. uses humor in its marketing, with slogans like "Love Is Still Our Field," "The Somebody Else Up There Who Loves You," "Just Plane Smart" and "You're Now Free to Move About the Country." To increase customer loyalty, the company launched a rewards program in 2011 that awards points for flights, hotel stays, car rentals and purchases at partner retailers, which consumers can redeem for free flights.

Southwest Airlines Co. has significantly influenced other low-cost carriers and the aviation industry as a whole. Its competitive strategy is to increase aircraft and employee productivity to reduce turnaround time at the gate. Ryanair and EasyJet have mirrored this rolling hub or point-to-point network strategy. 

Southwest has also had a lot of industry influence through its lobbying efforts, primarily to lobby against the development of high-speed rail systems in favor of providing more point-to-point flights between major cities. However, in recent years, Southwest Airlines Co. has been affected by customer lawsuits, flight delays and cancelations and system disruptions due to not investing in newer technologies.

Southwest Airlines Co. has provided value to its shareholders for many years, having returned more than $12.9 billion through stock repurchases and dividends as of March 2020. However, in the first quarter of 2020, the company had to suspend its dividend payments due to the uncertain market and COVID-19. On December 6, 2022, the board of directors decided to reinstate its quarterly cash dividend at 18 cents per share. This reinstated dividend equaled the expected dividend when it disappeared in 2020.

Southwest Airlines Co. is a leader in the aviation industry, providing great customer service, hospitality, employee stability and value to its shareholders.

LUV Stock Price History

LUV Stock News Headlines

3 Value Stocks You Can Buy Before They Become Big (LUV)
Generac Holdings, Southwest Airlines, and Sprouts Farmers Market are becoming value stocks with their unique products, high profit margins, and strong returns.
3 Value Stocks You Can Buy Before They Become Big
What's Warren Buffett's secret? The truth is, there is no secret.
Southwest Airlines is considering changes to its quirky boarding and seating practices
Get ready for changes in boarding and seating at Southwest Airlines
Southwest posts a 1Q loss and will limit hiring, offer voluntary leave to staff and drop 4 airports
Southwest Airlines will limit hiring and offer voluntary leave to employees after losing money in the first quarter
Southwest Airlines flight attendants ratify a contract that will raise pay about 33% over 4 years
Southwest Airlines flight attendants have ratified a new contract that will boost their pay by about one-third over four years
Southwest to add two BHM flights
The Best Airlines for Traveling With Kids
See More Headlines
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Company Calendar

Ex-Dividend for 3/27 Dividend
3/05/2024
Dividend Payable
3/27/2024
Last Earnings
4/25/2024
Today
5/22/2024
Ex-Dividend for 7/10 Dividend
6/18/2024
Dividend Payable
7/10/2024
Next Earnings (Estimated)
7/25/2024
Fiscal Year End
12/31/2024

Industry, Sector and Symbol

Industry
Air transportation, scheduled
Sub-Industry
Airlines
CUSIP
84474110
Employees
74,806
Year Founded
1967

Price Target and Rating

Average Stock Price Target
$30.10
High Stock Price Target
$42.00
Low Stock Price Target
$20.00
Potential Upside/Downside
+8.0%
Consensus Rating
Hold
Rating Score (0-4)
2.06
Research Coverage
18 Analysts

Profitability

Net Income
$465 million
Pretax Margin
2.02%

Debt

Sales & Book Value

Annual Sales
$26.09 billion
Cash Flow
$4.16 per share
Book Value
$17.04 per share

Miscellaneous

Free Float
596,481,000
Market Cap
$16.69 billion
Optionable
Optionable
Beta
1.16

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Key Executives

  • Mr. Gary C. Kelly (Age 69)
    Executive Chairman
    Comp: $5.26M
  • Mr. Robert E. Jordan (Age 63)
    CEO, President & Director
    Comp: $5.2M
  • Ms. Tammy  RomoMs. Tammy Romo (Age 62)
    Executive VP & CFO
    Comp: $3.65M
  • Mr. Andrew M. WattersonMr. Andrew M. Watterson (Age 57)
    Chief Operating Officer
    Comp: $2.78M
  • Mr. Mark R. Shaw (Age 61)
    Executive VP, Chief Legal & Regulatory Officer and Corporate Secretary
    Comp: $2.34M
  • Mr. Ray Schuster
    Managing Director of Accounting & Financial Reporting
  • Mr. Thomas Merritt
    VP of Technology – Infrastructure & Services and CTO
  • Ms. Lauren Woods
    Senior VP of Technology & Chief Information Officer
  • Ms. Linda Burke Rutherford (Age 57)
    Chief Administrative Officer
  • Ms. Julia Landrum
    Vice President of Investor Relations

LUV Stock Analysis - Frequently Asked Questions

Should I buy or sell Southwest Airlines stock right now?

18 Wall Street equities research analysts have issued "buy," "hold," and "sell" ratings for Southwest Airlines in the last year. There are currently 4 sell ratings, 9 hold ratings and 5 buy ratings for the stock. The consensus among Wall Street equities research analysts is that investors should "hold" LUV shares. A hold rating indicates that analysts believe investors should maintain any existing positions they have in LUV, but not buy additional shares or sell existing shares.
View LUV analyst ratings
or view top-rated stocks.

What is Southwest Airlines' stock price target for 2024?

18 Wall Street research analysts have issued 1-year price objectives for Southwest Airlines' shares. Their LUV share price targets range from $20.00 to $42.00. On average, they predict the company's stock price to reach $30.10 in the next twelve months. This suggests a possible upside of 8.0% from the stock's current price.
View analysts price targets for LUV
or view top-rated stocks among Wall Street analysts.

How have LUV shares performed in 2024?

Southwest Airlines' stock was trading at $28.88 at the start of the year. Since then, LUV stock has decreased by 3.5% and is now trading at $27.88.
View the best growth stocks for 2024 here
.

Are investors shorting Southwest Airlines?

Southwest Airlines saw a increase in short interest during the month of April. As of April 30th, there was short interest totaling 22,350,000 shares, an increase of 15.1% from the April 15th total of 19,420,000 shares. Based on an average trading volume of 9,230,000 shares, the short-interest ratio is currently 2.4 days.
View Southwest Airlines' Short Interest
.

When is Southwest Airlines' next earnings date?

The company is scheduled to release its next quarterly earnings announcement on Thursday, July 25th 2024.
View our LUV earnings forecast
.

How were Southwest Airlines' earnings last quarter?

Southwest Airlines Co. (NYSE:LUV) announced its quarterly earnings data on Thursday, April, 25th. The airline reported ($0.36) EPS for the quarter, missing the consensus estimate of ($0.34) by $0.02. The airline had revenue of $6.33 billion for the quarter, compared to analysts' expectations of $6.42 billion. Southwest Airlines had a net margin of 1.59% and a trailing twelve-month return on equity of 8.91%. The company's quarterly revenue was up 11.0% compared to the same quarter last year. During the same period last year, the company earned ($0.27) earnings per share.
Read the conference call transcript
.

How often does Southwest Airlines pay dividends? What is the dividend yield for Southwest Airlines?

Southwest Airlines declared a quarterly dividend on Wednesday, May 15th. Stockholders of record on Wednesday, June 19th will be given a dividend of $0.18 per share on Wednesday, July 10th. This represents a $0.72 dividend on an annualized basis and a yield of 2.58%. The ex-dividend date is Tuesday, June 18th.
Read our dividend analysis for LUV
.

Is Southwest Airlines a good dividend stock?

Southwest Airlines (NYSE:LUV) pays an annual dividend of $0.72 per share and currently has a dividend yield of 2.55%. The dividend payout ratio is 114.29%. Payout ratios above 75% are not desirable because they may not be sustainable. Based on earnings estimates, LUV will have a dividend payout ratio of 34.62% next year. This indicates that the company will be able to sustain or increase its dividend.
Read our dividend analysis for LUV.

What is Gary C. Kelly's approval rating as Southwest Airlines' CEO?

1,507 employees have rated Southwest Airlines Chief Executive Officer Gary C. Kelly on Glassdoor.com. Gary C. Kelly has an approval rating of 94% among the company's employees. This puts Gary C. Kelly in the top 30% of approval ratings compared to other CEOs of publicly-traded companies.

What other stocks do shareholders of Southwest Airlines own?

Based on aggregate information from My MarketBeat watchlists, some companies that other Southwest Airlines investors own include Delta Air Lines (DAL), NVIDIA (NVDA), Walt Disney (DIS), Boeing (BA), Bank of America (BAC), AT&T (T), Tesla (TSLA), Alibaba Group (BABA), Micron Technology (MU) and Netflix (NFLX).

Who are Southwest Airlines' major shareholders?

Southwest Airlines' stock is owned by a variety of retail and institutional investors. Top institutional investors include Vanguard Group Inc. (11.29%), Capital World Investors (10.26%), Price T Rowe Associates Inc. MD (3.92%), U S Global Investors Inc. (0.67%), Oldfield Partners LLP (0.41%) and Kiltearn Partners LLP (0.30%). Insiders that own company stock include John T Montford, Ryan C Green and Thomas W Gilligan.
View institutional ownership trends
.

How do I buy shares of Southwest Airlines?

Shares of LUV stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

Does Southwest Airlines have any subsidiaries?
The following companies are subsidiares of Southwest Airlines: AirTran Airways, AirTran Airways 717 Leasing Corporation, AirTran Airways Inc., AirTran Holdings LLC, Morris Air, Southwest Jet Fuel Co., TranStar Airlines, and Triple Crown Assurance Co..
Read More
This page (NYSE:LUV) was last updated on 5/23/2024 by MarketBeat.com Staff

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