Southwest Airlines (NYSE:LUV) Rating Increased to Neutral at UBS Group

UBS Group upgraded shares of Southwest Airlines (NYSE:LUV) from a sell rating to a neutral rating in a research note issued to investors on Thursday morning, MarketBeat Ratings reports. UBS Group currently has $36.00 target price on the airline’s stock, up from their previous target price of $29.00.

Other equities analysts also recently issued research reports about the company. Bank of America restated an “underperform” rating and set a $31.00 target price (down previously from $33.00) on shares of Southwest Airlines in a research report on Friday, January 17th. Morgan Stanley restated an “overweight” rating and set a $42.00 target price on shares of Southwest Airlines in a research report on Wednesday, December 11th. Citigroup restated a “sell” rating and set a $29.50 target price (down previously from $31.50) on shares of Southwest Airlines in a research report on Thursday, January 16th. Susquehanna cut their target price on Southwest Airlines from $38.00 to $34.00 and set a “neutral” rating for the company in a research report on Tuesday, February 4th. Finally, TD Cowen raised their target price on Southwest Airlines from $25.00 to $28.00 and gave the stock a “hold” rating in a research report on Friday, December 6th. Five investment analysts have rated the stock with a sell rating, eleven have given a hold rating and four have issued a buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $32.52.

Southwest Airlines Stock Performance

LUV opened at $34.84 on Thursday. The firm has a market capitalization of $20.65 billion, a P/E ratio of 48.39, a price-to-earnings-growth ratio of 0.97 and a beta of 1.10. The stock’s 50 day moving average price is $31.16 and its two-hundred day moving average price is $31.38. The company has a quick ratio of 0.85, a current ratio of 0.92 and a debt-to-equity ratio of 0.49. Southwest Airlines has a 12-month low of $23.58 and a 12-month high of $36.12.

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

Southwest Airlines Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 2nd. Stockholders of record on Wednesday, March 12th will be paid a $0.18 dividend. The ex-dividend date is Wednesday, March 12th. This represents a $0.72 annualized dividend and a dividend yield of 2.07%. Southwest Airlines’s dividend payout ratio (DPR) is currently 100.00%.

Insider Activity

In related news, Director C. David Cush acquired 5,000 shares of the firm’s stock in a transaction that occurred on Wednesday, March 12th. The stock was acquired at an average cost of $30.03 per share, with a total value of $150,150.00. Following the completion of the purchase, the director now directly owns 19,011 shares in the company, valued at approximately $570,900.33. This trade represents a 35.69 % increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 0.33% of the company’s stock.

Institutional Investors Weigh In On Southwest Airlines

A number of institutional investors have recently made changes to their positions in LUV. Kestra Investment Management LLC acquired a new stake in shares of Southwest Airlines during the fourth quarter worth $26,000. Raleigh Capital Management Inc. grew its stake in Southwest Airlines by 186.7% in the fourth quarter. Raleigh Capital Management Inc. now owns 883 shares of the airline’s stock valued at $30,000 after acquiring an additional 575 shares during the period. 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 acquiring an additional 589 shares during the period. TD Private Client Wealth LLC grew its stake in Southwest Airlines by 41.1% in the third quarter. TD Private Client Wealth LLC now owns 1,184 shares of the airline’s stock valued at $35,000 after acquiring an additional 345 shares during the period. Finally, VSM Wealth Advisory LLC acquired a new position in Southwest Airlines in the fourth quarter valued at about $42,000. 80.82% of the stock is owned by institutional investors and hedge funds.

About Southwest Airlines

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.