Southwest Airlines (NYSE:LUV) Stock Rating Upgraded by Barclays

Southwest Airlines (NYSE:LUV) was upgraded by equities researchers at Barclays from an “equal weight” rating to an “overweight” rating in a research report issued on Tuesday, MarketBeat Ratings reports. The brokerage currently has a $56.00 target price on the airline’s stock, up from their prior target price of $34.00. Barclays‘s price objective would indicate a potential upside of 36.34% from the company’s previous close.

LUV has been the subject of a number of other reports. Susquehanna increased their price target on Southwest Airlines from $30.00 to $35.00 and gave the company a “neutral” rating in a research note on Friday, October 3rd. Citigroup initiated coverage on shares of Southwest Airlines in a report on Thursday, December 4th. They set a “neutral” rating and a $38.00 price objective on the stock. Deutsche Bank Aktiengesellschaft increased their price objective on shares of Southwest Airlines from $40.00 to $48.00 and gave the company a “buy” rating in a research report on Friday, December 12th. JPMorgan Chase & Co. upped their price target on shares of Southwest Airlines from $35.00 to $36.00 and gave the company an “underweight” rating in a research note on Friday, October 24th. Finally, BMO Capital Markets began coverage on shares of Southwest Airlines in a report on Tuesday, December 9th. They issued a “market perform” rating and a $43.00 price target for the company. Five research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $38.59.

Southwest Airlines Price Performance

Shares of LUV stock opened at $41.07 on Tuesday. The firm has a market capitalization of $21.24 billion, a P/E ratio of 63.19, a P/E/G ratio of 0.85 and a beta of 1.17. Southwest Airlines has a 52-week low of $23.82 and a 52-week high of $43.54. The stock has a 50 day moving average price of $34.09 and a 200 day moving average price of $33.13. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.42 and a current ratio of 0.49.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings results on Tuesday, February 6th. The airline reported ($0.38) earnings per share (EPS) for the quarter. Southwest Airlines had a return on equity of 6.39% and a net margin of 1.38%.The firm had revenue of $6.17 billion for the quarter. As a group, sell-side analysts predict that Southwest Airlines will post 1.55 earnings per share for the current year.

Institutional Investors Weigh In On Southwest Airlines

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Elevation Point Wealth Partners LLC acquired a new position in shares of Southwest Airlines in the 2nd quarter valued at about $25,000. Quent Capital LLC acquired a new stake in Southwest Airlines during the third quarter worth about $27,000. Corsicana & Co. purchased a new position in Southwest Airlines during the third quarter valued at approximately $27,000. Caitong International Asset Management Co. Ltd acquired a new position in Southwest Airlines in the second quarter valued at approximately $31,000. Finally, Hantz Financial Services Inc. lifted its holdings in Southwest Airlines by 81.4% in the second quarter. Hantz Financial Services Inc. now owns 1,056 shares of the airline’s stock valued at $34,000 after acquiring an additional 474 shares during the period. 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.