Southwest Airlines Company (NYSE:LUV) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Monday.

According to Zacks, “Shares of Southwest Airlines have struggled of late due to multiple headwinds. Consequently, the stock underperformed its industry in the last six months. The recent hurricanes and the earthquake in Mexico disrupted operations at this low-cost carrier, forcing it to cancel 5,000 flights in the third quarter of 2017. As a result of the natural calamities, the carrier's top line was hurt to the tune of $100 million in the quarter. Consequently, the company reported lower-than-expected revenues in the third quarter. High fuel costs are also a bane. In fact, the carrier's bottom line declined 5.4% on a year-over-year basis in the third quarter of 2017 due to high costs. We are, however, appreciative of the company's efforts to enhance its shareholders‘ wealth through dividends and share buybacks.”

Other analysts also recently issued reports about the company. Cowen and Company restated a “buy” rating and issued a $67.00 price objective on shares of Southwest Airlines in a report on Friday, July 28th. Vetr upgraded Southwest Airlines from a “hold” rating to a “buy” rating and set a $64.21 price objective for the company in a report on Tuesday, July 18th. BidaskClub downgraded Southwest Airlines from a “strong-buy” rating to a “buy” rating in a report on Wednesday, July 12th. Morgan Stanley set a $64.00 price objective on Southwest Airlines and gave the company a “buy” rating in a report on Thursday, August 17th. Finally, Citigroup Inc. restated a “buy” rating and issued a $64.00 price objective (down from $65.00) on shares of Southwest Airlines in a report on Thursday, September 7th. Two research analysts have rated the stock with a sell rating, four have assigned a hold rating and fourteen have given a buy rating to the company’s stock. Southwest Airlines has an average rating of “Buy” and a consensus target price of $67.13.

Southwest Airlines (NYSE:LUV) traded up 1.414% on Monday, hitting $54.875. The stock had a trading volume of 2,570,682 shares. The company has a market capitalization of $32.85 billion, a PE ratio of 16.828 and a beta of 1.32. Southwest Airlines has a 12-month low of $38.95 and a 12-month high of $64.39. The company has a 50 day moving average of $56.52 and a 200 day moving average of $57.42.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings data on Thursday, October 26th. The airline reported $0.88 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.87 by $0.01. The business had revenue of $5.27 billion during the quarter, compared to the consensus estimate of $5.29 billion. Southwest Airlines had a return on equity of 24.85% and a net margin of 10.12%. Southwest Airlines’s quarterly revenue was up 2.6% on a year-over-year basis. During the same period in the prior year, the business posted $0.93 earnings per share. On average, equities analysts expect that Southwest Airlines will post $3.57 earnings per share for the current year.

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In related news, Director William H. Dr Cunningham acquired 4,500 shares of the business’s stock in a transaction dated Friday, August 11th. The shares were bought at an average price of $54.00 per share, with a total value of $243,000.00. Following the transaction, the director now directly owns 66,969 shares of the company’s stock, valued at $3,616,326. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. 0.21% of the stock is owned by corporate insiders.

Several hedge funds have recently added to or reduced their stakes in LUV. Marshall Wace North America L.P. bought a new position in shares of Southwest Airlines during the 1st quarter worth about $266,000. Winslow Capital Management LLC boosted its position in shares of Southwest Airlines by 3.5% during the 1st quarter. Winslow Capital Management LLC now owns 5,085,403 shares of the airline’s stock worth $273,392,000 after purchasing an additional 173,372 shares in the last quarter. Parallel Advisors LLC boosted its position in shares of Southwest Airlines by 2.5% during the 1st quarter. Parallel Advisors LLC now owns 21,857 shares of the airline’s stock worth $1,271,000 after purchasing an additional 524 shares in the last quarter. Johnson Financial Group Inc. boosted its position in shares of Southwest Airlines by 14.7% during the 1st quarter. Johnson Financial Group Inc. now owns 38,407 shares of the airline’s stock worth $2,065,000 after purchasing an additional 4,914 shares in the last quarter. Finally, Aureus Asset Management LLC bought a new position in shares of Southwest Airlines during the 1st quarter worth about $249,000. 79.55% of the stock is currently owned by institutional investors.

About Southwest Airlines

Southwest Airlines Co (Southwest) operates Southwest Airlines, a passenger airline that provides scheduled air transportation in the United States and near-international markets. The Company provides point-to-point service. The Company offers ancillary service offerings, such as Southwest’s EarlyBird Check-In and transportation of pets and unaccompanied minors, in accordance with Southwest’s respective policies.

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