Southwest Airlines (NYSE:LUV) Stock Price Passes Above Two Hundred Day Moving Average – What’s Next?

Southwest Airlines Co. (NYSE:LUV)’s stock price crossed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $34.77 and traded as high as $43.14. Southwest Airlines shares last traded at $42.3970, with a volume of 9,651,534 shares.

Analyst Ratings Changes

A number of research analysts have weighed in on LUV shares. Evercore ISI lifted their price target on shares of Southwest Airlines from $35.00 to $40.00 in a research report on Friday, January 9th. Wells Fargo & Company initiated coverage on shares of Southwest Airlines in a research note on Thursday, December 18th. They issued an “equal weight” rating and a $45.00 target price on the stock. Raymond James Financial lifted their target price on shares of Southwest Airlines from $42.00 to $49.00 and gave the company an “outperform” rating in a report on Friday, December 19th. TD Cowen increased their price target on Southwest Airlines from $31.00 to $42.00 and gave the company a “hold” rating in a report on Friday, December 12th. Finally, Morgan Stanley raised their price objective on Southwest Airlines from $48.00 to $50.00 and gave the company an “overweight” rating in a research report on Thursday, January 8th. Six analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $41.79.

Southwest Airlines Stock Down 1.7%

The firm has a market cap of $21.93 billion, a P/E ratio of 65.23, a PEG ratio of 0.24 and a beta of 1.16. The firm’s 50-day moving average price is $38.94 and its 200 day moving average price is $34.77. The company has a debt-to-equity ratio of 0.52, a current ratio of 0.49 and a quick ratio of 0.42.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings data on Wednesday, October 22nd. The airline reported $0.11 earnings per share for the quarter, beating the consensus estimate of $0.01 by $0.10. Southwest Airlines had a return on equity of 6.39% and a net margin of 1.38%.The firm had revenue of $6.95 billion during the quarter, compared to analyst estimates of $6.93 billion. During the same period in the previous year, the company earned $0.15 earnings per share. Southwest Airlines’s quarterly revenue was up 1.1% on a year-over-year basis. On average, equities research analysts expect that Southwest Airlines Co. will post 1.55 earnings per share for the current fiscal year.

Southwest Airlines Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, January 16th. Stockholders of record on Friday, December 26th were issued a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date was Friday, December 26th. Southwest Airlines’s payout ratio is 110.77%.

Hedge Funds Weigh In On Southwest Airlines

Hedge funds have recently added to or reduced their stakes in the business. Austin Private Wealth LLC acquired a new stake in shares of Southwest Airlines during the fourth quarter worth $253,000. Midwest Financial Group LLC acquired a new position in shares of Southwest Airlines in the 4th quarter valued at about $224,000. Clarus Group Inc. bought a new stake in shares of Southwest Airlines during the 4th quarter valued at about $229,000. FNY Investment Advisers LLC raised its stake in Southwest Airlines by 16,328.6% during the fourth quarter. FNY Investment Advisers LLC now owns 2,300 shares of the airline’s stock worth $95,000 after acquiring an additional 2,286 shares during the period. Finally, Lodestone Wealth Management LLC acquired a new stake in Southwest Airlines during the fourth quarter worth about $29,000. Institutional investors and hedge funds own 80.82% of the company’s stock.

About Southwest Airlines

Southwest Airlines Co is a U.S.-based low-cost carrier that operates a point-to-point domestic and near-international airline network. Headquartered in Dallas, Texas, the company primarily flies Boeing 737 aircraft and offers no-frills, single-class service designed to keep fares competitive. Southwest’s operating model emphasizes high aircraft utilization, quick turnaround times and an open seating policy, allowing customers to board and select seats on a first-come, first-served basis.

Founded in 1967 by Herb Kelleher and Rollin King as Air Southwest Company, Southwest began commercial service in 1971, initially connecting Dallas, Houston and San Antonio.