UBS Group Issues Positive Forecast for Southwest Airlines (NYSE:LUV) Stock Price

Southwest Airlines (NYSE:LUV) had its price target raised by UBS Group from $43.00 to $45.00 in a research note released on Tuesday morning,Benzinga reports. They currently have a neutral rating on the airline’s stock.

A number of other equities analysts have also issued reports on the company. Wells Fargo & Company began coverage on Southwest Airlines in a report on Thursday, December 18th. They issued an “equal weight” rating and a $45.00 price objective for the company. Evercore ISI boosted their price target on Southwest Airlines from $34.00 to $35.00 and gave the stock an “in-line” rating in a research report on Monday, September 29th. Jefferies Financial Group increased their price target on Southwest Airlines from $33.00 to $34.00 and gave the stock a “hold” rating in a research note on Tuesday, December 2nd. TD Cowen lifted their price objective on shares of Southwest Airlines from $31.00 to $42.00 and gave the company a “hold” rating in a research note on Friday, December 12th. Finally, JPMorgan Chase & Co. upped their price objective on shares of Southwest Airlines from $35.00 to $36.00 and gave the stock an “underweight” rating in a report on Friday, October 24th. Five research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $39.89.

Southwest Airlines Stock Up 0.1%

LUV stock opened at $42.49 on Tuesday. The stock has a market cap of $21.97 billion, a PE ratio of 65.37, a price-to-earnings-growth ratio of 0.26 and a beta of 1.16. The firm’s 50-day simple moving average is $36.54 and its 200 day simple moving average is $34.03. Southwest Airlines has a fifty-two week low of $23.82 and a fifty-two week high of $43.54. The company has a quick ratio of 0.42, a current ratio of 0.49 and a debt-to-equity ratio of 0.52.

Southwest Airlines (NYSE:LUV) last posted its earnings results on Tuesday, February 6th. The airline reported ($0.38) earnings per share (EPS) for the quarter. Southwest Airlines had a net margin of 1.38% and a return on equity of 6.39%. 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 EPS for the current year.

Southwest Airlines Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, January 16th. Investors of record on Friday, December 26th will be paid a dividend of $0.18 per share. The ex-dividend date of this dividend is Friday, December 26th. This represents a $0.72 annualized dividend and a yield of 1.7%. Southwest Airlines’s dividend payout ratio (DPR) is currently 110.77%.

Institutional Investors Weigh In On Southwest Airlines

Hedge funds and other institutional investors have recently bought and sold shares of the business. Elevation Point Wealth Partners LLC bought a new position in shares of Southwest Airlines during the 2nd quarter valued at about $25,000. Quent Capital LLC bought a new stake in Southwest Airlines during the third quarter worth approximately $27,000. Corsicana & Co. bought a new stake in Southwest Airlines during the third quarter worth approximately $27,000. Caitong International Asset Management Co. Ltd acquired a new position in Southwest Airlines in the second quarter worth approximately $31,000. Finally, Hantz Financial Services Inc. increased its holdings in shares of 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 buying an additional 474 shares in the last quarter. 80.82% of the stock is currently owned by institutional investors.

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.