Southwest Airlines (NYSE:LUV) Raised to “Outperform” at Wolfe Research

Southwest Airlines (NYSE:LUV) was upgraded by investment analysts at Wolfe Research from a “peer perform” rating to an “outperform” rating in a research note issued on Friday, The Fly reports. The brokerage presently has a $57.00 price target on the airline’s stock. Wolfe Research’s target price would indicate a potential upside of 18.23% from the stock’s current price.

Several other research analysts also recently commented on LUV. Barclays decreased their price objective on Southwest Airlines from $65.00 to $60.00 and set an “equal weight” rating on the stock in a research note on Friday, April 26th. Morgan Stanley decreased their price objective on Southwest Airlines from $64.00 to $59.00 and set an “overweight” rating on the stock in a research note on Wednesday. Imperial Capital reaffirmed an “in-line” rating and issued a $55.00 price objective (up previously from $52.00) on shares of Southwest Airlines in a research note on Friday, April 26th. Cowen reaffirmed a “market perform” rating and issued a $57.00 price objective (up previously from $55.00) on shares of Southwest Airlines in a research note on Friday, July 26th. Finally, Argus downgraded Southwest Airlines from a “buy” rating to a “hold” rating in a research note on Tuesday. Three investment analysts have rated the stock with a sell rating, nine have issued a hold rating and five have given a buy rating to the stock. The company currently has an average rating of “Hold” and a consensus price target of $57.15.

LUV stock opened at $48.21 on Friday. Southwest Airlines has a fifty-two week low of $44.28 and a fifty-two week high of $64.02. The business’s 50-day moving average is $51.65 and its two-hundred day moving average is $52.42. The company has a debt-to-equity ratio of 0.37, a quick ratio of 0.59 and a current ratio of 0.64. The company has a market cap of $26.83 billion, a price-to-earnings ratio of 11.37, a P/E/G ratio of 1.08 and a beta of 1.50.

Southwest Airlines (NYSE:LUV) last posted its earnings results on Thursday, July 25th. The airline reported $1.37 earnings per share for the quarter, beating analysts’ consensus estimates of $1.35 by $0.02. Southwest Airlines had a return on equity of 24.12% and a net margin of 10.73%. The company had revenue of $5.91 billion for the quarter, compared to the consensus estimate of $5.94 billion. During the same quarter in the prior year, the company earned $1.26 earnings per share. Southwest Airlines’s revenue was up 2.9% on a year-over-year basis. Equities analysts predict that Southwest Airlines will post 4.35 earnings per share for the current year.

Large investors have recently added to or reduced their stakes in the stock. Mutual Advisors LLC grew its holdings in Southwest Airlines by 3.2% during the 2nd quarter. Mutual Advisors LLC now owns 14,924 shares of the airline’s stock valued at $758,000 after buying an additional 462 shares in the last quarter. Cambridge Investment Research Advisors Inc. grew its holdings in Southwest Airlines by 5.5% during the 2nd quarter. Cambridge Investment Research Advisors Inc. now owns 82,278 shares of the airline’s stock valued at $4,178,000 after buying an additional 4,323 shares in the last quarter. Voloridge Investment Management LLC purchased a new position in Southwest Airlines during the 2nd quarter valued at approximately $745,000. Worldquant Millennium Advisors LLC grew its holdings in Southwest Airlines by 18.6% during the 2nd quarter. Worldquant Millennium Advisors LLC now owns 68,096 shares of the airline’s stock valued at $3,458,000 after buying an additional 10,683 shares in the last quarter. Finally, Doyle Wealth Management purchased a new position in Southwest Airlines during the 2nd quarter valued at approximately $58,000. Hedge funds and other institutional investors own 84.25% of the company’s stock.

About Southwest Airlines

Southwest Airlines Co operates a passenger airline that provides scheduled air transportation services in the United States and near-international markets. As of December 31, 2018, the company operated a total of 750 Boeing 737 aircraft; and served 99 destinations in 40 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as 10 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)

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