The Short-term Rise and Fall of Southwest Airlines Co (LUV) Stock

A share price of Southwest Airlines Co [LUV] is currently trading at $30.25, down -0.07%. Until recently, the best way to gauge how the stock has performed was to look at its short-term value. The LUV shares have gain 0.83% over the last week, with a monthly amount drifted -5.97%, and not seem to be holding up well over a long-time horizon.

From an analyst’s perspective:

Southwest Airlines Co [NYSE: LUV] stock has seen the most recent analyst activity on February 11, 2025, when Argus upgraded its rating to a Buy but kept the price target unchanged to $35 for it. Previously, BofA Securities downgraded its rating to Underperform on January 17, 2025, and kept the price target unchanged to $31. On January 16, 2025, downgrade downgraded it’s rating to Sell and revised its price target to $29.50 on the stock. TD Cowen reiterated its recommendation of a Hold and raised its price target to $28 on December 06, 2024.

Southwest Airlines Co experienced fluctuations in its stock price throughout the past year between $23.58 and $36.12. Currently, Wall Street analysts expect the stock to reach $31.83 within the next 12 months. Southwest Airlines Co [NYSE: LUV] shares were valued at $30.25 at the most recent close of the market. An investor can expect a potential return of 5.22% based on the average LUV price forecast.

Analyzing the LUV fundamentals

Trailing Twelve Months sales for Southwest Airlines Co [NYSE:LUV] were 27.48B which represents 1.60% growth. Gross Profit Margin for this corporation currently stands at 0.17% with Operating Profit Margin at 0.01%, Pretax Profit Margin comes in at 0.02%, and Net Profit Margin reading is 0.02%. To continue investigating profitability, this company’s Return on Assets is posted at 0.01, Equity is 0.04 and Total Capital is 0.02. Upon thorough examination of the company’s fundamental financial framework, it becomes apparent that the debt-to-equity ratio stands at 0.78.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 29.96 points at the first support level, and at 29.67 for the second support level. However, for the 1st resistance point, the stock is sitting at 30.50, and for the 2nd resistance point, it is at 30.75.

Ratios To Look Out For

To put it in perspective, the Current Ratio for Southwest Airlines Co [NYSE:LUV] is 0.92. As well, the Quick Ratio is 0.85, while the Cash Ratio is 0.61. Considering the valuation of this stock, the price to sales ratio is 0.65, the price to book ratio is 1.73 and price to earnings (TTM) ratio is 42.59.

Transactions by insiders

Recent insider trading involved Rutherford Linda B., Chief Administration Officer, that happened on Dec 06 ’24 when 3849.0 shares were sold. Officer, Rutherford Linda B. completed a deal on Dec 06 ’24 to buy 3849.0 shares. Meanwhile, 10% Owner Elliott Investment Management sold 1.2 million shares on Oct 28 ’24.

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