Southwest Airlines Co. (LUV) Rating Lowered to Buy at Vetr Inc.
Southwest Airlines Co. (NYSE:LUV) was downgraded by Vetr from a “strong-buy” rating to a “buy” rating in a research note issued to investors on Monday. They currently have a $40.67 price objective on the airline’s stock. Vetr‘s target price suggests a potential upside of 10.46% from the company’s previous close.
A number of other research analysts have also issued reports on the stock. Evercore ISI upgraded shares of Southwest Airlines from a “hold” rating to a “buy” rating and dropped their price target for the stock from $47.00 to $37.36 in a research note on Tuesday, July 26th. Morgan Stanley reiterated a “hold” rating and set a $43.00 price target on shares of Southwest Airlines in a research note on Sunday, August 21st. Argus lowered shares of Southwest Airlines from a “buy” rating to a “hold” rating and boosted their price target for the stock from $32.94 to $37.83 in a research note on Monday, July 25th. Credit Suisse Group AG reiterated an “outperform” rating on shares of Southwest Airlines in a research note on Wednesday, July 6th. Finally, Buckingham Research lowered shares of Southwest Airlines from a “buy” rating to a “neutral” rating in a research note on Friday, July 22nd. One investment analyst has rated the stock with a sell rating, five have given a hold rating and ten have issued a buy rating to the company’s stock. The stock currently has an average rating of “Buy” and a consensus price target of $47.85.
Southwest Airlines (NYSE:LUV) opened at 36.82 on Monday. The firm has a 50-day moving average of $36.91 and a 200-day moving average of $40.99. The stock has a market capitalization of $22.84 billion, a price-to-earnings ratio of 9.77 and a beta of 0.84. Southwest Airlines has a 1-year low of $33.96 and a 1-year high of $51.34.
Southwest Airlines (NYSE:LUV) last announced its earnings results on Thursday, July 21st. The airline reported $1.19 EPS for the quarter, missing analysts’ consensus estimates of $1.21 by $0.02. Southwest Airlines had a net margin of 11.95% and a return on equity of 34.25%. The business earned $5.38 billion during the quarter, compared to analysts’ expectations of $5.41 billion. During the same period in the previous year, the company posted $1.03 earnings per share. Southwest Airlines’s quarterly revenue was up 5.3% on a year-over-year basis. Equities research analysts anticipate that Southwest Airlines will post $3.80 EPS for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 8th. Investors of record on Thursday, August 18th were paid a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a dividend yield of 1.09%. The ex-dividend date was Tuesday, August 16th. Southwest Airlines’s payout ratio is 10.61%.
In related news, COO De Ven Michael G. Van purchased 4,200 shares of the business’s stock in a transaction on Wednesday, August 3rd. The shares were bought at an average price of $35.77 per share, with a total value of $150,234.00. Following the completion of the purchase, the chief operating officer now directly owns 183,245 shares in the company, valued at approximately $6,554,673.65. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, insider Gary C. Kelly purchased 28,106 shares of the business’s stock in a transaction on Tuesday, August 2nd. The shares were bought at an average cost of $35.58 per share, for a total transaction of $1,000,011.48. Following the purchase, the insider now owns 505,119 shares of the company’s stock, valued at $17,972,134.02. The disclosure for this purchase can be found here. Corporate insiders own 0.18% of the company’s stock.
A number of institutional investors have recently bought and sold shares of LUV. Bank of Montreal Can bought a new position in Southwest Airlines during the second quarter worth $246,179,000. Norges Bank bought a new position in Southwest Airlines during the fourth quarter worth $105,780,000. JPMorgan Chase & Co. increased its position in Southwest Airlines by 60.1% in the second quarter. JPMorgan Chase & Co. now owns 5,445,479 shares of the airline’s stock worth $213,519,000 after buying an additional 2,044,766 shares in the last quarter. AQR Capital Management LLC increased its position in Southwest Airlines by 53.3% in the second quarter. AQR Capital Management LLC now owns 5,238,342 shares of the airline’s stock worth $205,395,000 after buying an additional 1,821,829 shares in the last quarter. Finally, Emerald Acquisition Ltd. bought a new position in Southwest Airlines during the second quarter worth $58,545,000. 78.50% of the stock is currently owned by institutional investors.
About Southwest Airlines
Southwest Airlines Co (Southwest) operates Southwest Airlines. Southwest is a passenger airline that provides scheduled air transportation in the United States and near-international markets. The Company serves approximately 100 destinations in over 40 states, such as the District of Columbia, the Commonwealth of Puerto Rico, and approximately seven near-international countries, including Mexico, Jamaica, The Bahamas, Aruba, Dominican Republic, Costa Rica, and Belize.
To view Vetr’s full report, visit Vetr’s official website.
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