Southwest Airlines Co. [LUV] Analysis: Why LUV Stock Is dripping down Today

In a recent bid Southwest Airlines Co. [LUV] faced a contemporary bid of $47.59 yielding a -0.29% decline where 7.62 million shares have exchanged hands over the last week. LUV amount got a fall by -0.48% or -$0.23 versus $47.82 at the end of the prior session. This change led market cap to move at 28.23B, putting the price 111.84% below the 52-week high and -19.11% above the 52-week low. The company’s stock has a normal trading capacity of 7.62 million shares while the relative volume is 0.74.

On 1, December 2020, Southwest Airlines Encourages Customers To Join The Global Generosity Movement By Giving Back On Giving Tuesday. According to news published on Yahoo Finance, Carrier honors the spirit of giving by donating 300,000 Rapid Rewards® Points to charitable organizations.

Analyst Birdseye View:

The most recent analyst activity for Southwest Airlines Co. [NYSE:LUV] stock was on November 30, 2020, when it was Downgrade with an Outperform rating from Raymond James, which also raised its 12-month price target on the stock from $49 to $54. Before that, on December 03, 2020, Cowen Recapitulated an Outperform rating and elevated its amount target to $55. On November 17, 2020, Jefferies Initiated a Buy rating and boosted its price target on this stock to $55. On October 23, 2020, Cowen Reiterated an Outperform rating and increased its price target from $43 to $46. On October 07, 2020, JP Morgan Downgrade an Underweight rating and increased its price target to $41. On September 08, 2020, Morgan Stanley Initiated an Overweight rating and boosted its amount on this stock to $54. On September 02, 2020, Berenberg Upgrade a Buy rating and boosted its target amount on this stock to $45.

In the past 52 weeks of trading, this stock has oscillated between a low of $22.47 and a peak of $58.83. Right now, according to Wall Street analyst the average 12-month amount target is $50.40. At the most recent market close, shares of Southwest Airlines Co. [NYSE:LUV] were valued at $47.59. According to the average price forecast, investors can expect a potential return of 1.68%.

FUNDAMENTAL ANALYSIS

Southwest Airlines Co. [NYSE:LUV] most recently reported quarterly sales of 1.79 billion, which represented growth of -68.20%. This publicly-traded organization’s revenue is $368,882 per employee, while its income is $37,829 per employee. This company’s Gross Margin is currently 69.80%, its Operating Margin is -15.50%, its Pretax Margin is +13.18, and its Net Margin is +10.26. Continuing to look at profitability, this corporation’s Return on Assets, Equity, Whole Principal & invested Principal is sitting at 8.47, 23.37, 22.17 and 18.16 respectively.

The Principal structure of this organization shows its whole liability to whole principal at 28.90 and the whole liability to whole assets at 14.79. It shows enduring liability to the whole principal at 20.42 and enduring liability to assets at 0.10 while looking for an extended time period.

Readers are usually of view to make a close observation to the indicators that support and make resistance before moving to any particular stock. As of now, the company’s stock is sitting at 46.84 points at 1st support level, the second support level is making up to 46.10. But as of 1st resistance point, this stock is sitting at 48.56 and at 49.54 for 2nd resistance point.

Southwest Airlines Co. [LUV] reported its earnings at -$1.99 per share in the fiscal quarter closing of 9/29/2020. The Analysts for Wall Street were expecting to report its earnings at -$2.35/share signifying the difference of 0.36 and 15.30% surprise value. Comparing the previous quarter ending of 6/29/2020, the stated earnings were -$2.67 calling estimates for -$2.66/share with the difference of -0.01 depicting the surprise of -0.40%.

Important Ratio’s To Watch

Meanwhile, turning our focus to liquidity, the Current Ratio for Southwest Airlines Co. [NYSE:LUV] is 2.10. Likewise, the Quick ratio is also the same, showing Cash ratio at 0.45. Now if looking for a valuation of this stock’s amount to sales ratio it’s 1.30 and it’s amount to book ratio is 2.85.

Insider Stories

The most recent insider trade was by Wells Gregory D, EVP, Daily Operations, and it was the sale of 15166.0 shares on Nov 18. Watterson Andrew M, the EVP & Chief Revenue Officer, completed a sale of 210.0 shares on May 29. On May 29, Watterson Andrew M, EVP & Chief Revenue Officer, completed a sale of 6036.0 shares.