Susquehanna Issues Pessimistic Forecast for Southwest Airlines (NYSE:LUV) Stock Price

Southwest Airlines (NYSE:LUV) had its price target reduced by Susquehanna from $34.00 to $25.00 in a research report issued on Monday,Benzinga reports. The brokerage presently has a “neutral” rating on the airline’s stock. Susquehanna’s price objective would suggest a potential upside of 0.99% from the stock’s current price.

Other research analysts also recently issued reports about the stock. Bank of America restated an “underperform” rating and set a $31.00 price objective (down from $33.00) on shares of Southwest Airlines in a research report on Friday, January 17th. Jefferies Financial Group downgraded Southwest Airlines from a “hold” rating to an “underperform” rating and set a $28.00 price objective for the company. in a research report on Tuesday, April 1st. UBS Group upgraded Southwest Airlines from a “sell” rating to a “neutral” rating and lifted their target price for the company from $29.00 to $36.00 in a research report on Thursday, March 20th. Melius Research raised Southwest Airlines from a “sell” rating to a “hold” rating and boosted their target price for the stock from $28.00 to $34.00 in a research note on Thursday, March 20th. Finally, Morgan Stanley restated an “overweight” rating and issued a $42.00 price target on shares of Southwest Airlines in a research note on Wednesday, December 11th. Six analysts have rated the stock with a sell rating, ten have given a hold rating and four have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $31.27.

Southwest Airlines Stock Performance

LUV opened at $24.76 on Monday. The firm has a market cap of $14.67 billion, a P/E ratio of 34.38, a price-to-earnings-growth ratio of 0.97 and a beta of 0.94. The business’s fifty day moving average is $30.72 and its 200-day moving average is $31.52. Southwest Airlines has a 52-week low of $23.58 and a 52-week high of $36.12. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.85 and a current ratio of 0.92.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings data on Thursday, January 30th. The airline reported $0.56 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.45 by $0.11. Southwest Airlines had a net margin of 1.69% and a return on equity of 5.77%. Sell-side analysts expect that Southwest Airlines will post 1.55 EPS for the current fiscal year.

Insider Buying and Selling at Southwest Airlines

In other news, Director C. David Cush acquired 5,000 shares of Southwest Airlines stock in a transaction dated Wednesday, March 12th. The shares were bought at an average cost of $30.03 per share, with a total value of $150,150.00. Following the purchase, the director now owns 19,011 shares in the company, valued at $570,900.33. This trade represents a 35.69 % increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this hyperlink. Insiders own 0.33% of the company’s stock.

Hedge Funds Weigh In On Southwest Airlines

Hedge funds and other institutional investors have recently bought and sold shares of the company. Franklin Resources Inc. raised its position in shares of Southwest Airlines by 46.2% in the 3rd quarter. Franklin Resources Inc. now owns 30,082,719 shares of the airline’s stock worth $932,894,000 after acquiring an additional 9,504,201 shares in the last quarter. National Bank of Canada FI increased its holdings in Southwest Airlines by 1,327.7% in the fourth quarter. National Bank of Canada FI now owns 2,840,529 shares of the airline’s stock worth $95,499,000 after purchasing an additional 2,641,564 shares in the last quarter. Sound Shore Management Inc. CT bought a new stake in Southwest Airlines in the fourth quarter worth approximately $85,262,000. Jacobs Levy Equity Management Inc. lifted its stake in Southwest Airlines by 66.0% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 6,014,828 shares of the airline’s stock valued at $202,219,000 after buying an additional 2,391,495 shares during the period. Finally, Norges Bank bought a new position in shares of Southwest Airlines during the 4th quarter worth approximately $57,724,000. Institutional investors and hedge funds own 80.82% of the company’s stock.

Southwest Airlines Company Profile

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.