Southwest Airlines (NYSE:LUV) Rating Lowered to “Underperform” at Jefferies Financial Group

Jefferies Financial Group lowered shares of Southwest Airlines (NYSE:LUV) from a hold rating to an underperform rating in a research report released on Tuesday, MarketBeat Ratings reports. Jefferies Financial Group currently has $28.00 price target on the airline’s stock.

LUV has been the topic of several other research reports. Susquehanna lowered their target price on shares of Southwest Airlines from $38.00 to $34.00 and set a “neutral” rating on the stock in a report on Tuesday, February 4th. TD Cowen upped their price objective on shares of Southwest Airlines from $25.00 to $28.00 and gave the stock a “hold” rating in a research note on Friday, December 6th. Bank of America reiterated an “underperform” rating and issued a $31.00 target price (down previously from $33.00) on shares of Southwest Airlines in a research note on Friday, January 17th. Melius upgraded Southwest Airlines from a “sell” rating to a “hold” rating in a research report on Thursday, March 20th. Finally, JPMorgan Chase & Co. lifted their price objective on Southwest Airlines from $25.00 to $30.00 and gave the company an “underweight” rating in a research report on Tuesday, March 18th. Six equities research analysts have rated the stock with a sell rating, ten have issued a hold rating and four have issued a buy rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $32.43.

Southwest Airlines Stock Performance

NYSE:LUV opened at $28.89 on Tuesday. The firm has a market capitalization of $17.12 billion, a PE ratio of 40.12, a price-to-earnings-growth ratio of 0.97 and a beta of 1.10. The company has a quick ratio of 0.85, a current ratio of 0.92 and a debt-to-equity ratio of 0.49. Southwest Airlines has a 12-month low of $23.58 and a 12-month high of $36.12. The firm has a 50-day moving average price of $31.26 and a 200 day moving average price of $31.60.

Southwest Airlines (NYSE:LUV) last issued its earnings results on Thursday, January 30th. The airline reported $0.56 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.45 by $0.11. Southwest Airlines had a return on equity of 5.77% and a net margin of 1.69%. Research analysts anticipate that Southwest Airlines will post 1.55 earnings per share for the current fiscal year.

Southwest Airlines Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, April 2nd. Shareholders of record on Wednesday, March 12th were issued a $0.18 dividend. The ex-dividend date was Wednesday, March 12th. This represents a $0.72 annualized dividend and a dividend yield of 2.49%. Southwest Airlines’s dividend payout ratio (DPR) is currently 100.00%.

Insider Activity

In other news, Director C. David Cush purchased 5,000 shares of the company’s stock in a transaction on Wednesday, March 12th. The shares were purchased at an average price of $30.03 per share, with a total value of $150,150.00. Following the purchase, the director now directly owns 19,011 shares of the company’s stock, valued at $570,900.33. This trade represents a 35.69 % increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 0.33% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of LUV. Kestra Investment Management LLC acquired a new position in Southwest Airlines during the 4th quarter worth approximately $26,000. Raleigh Capital Management Inc. boosted its holdings in Southwest Airlines by 186.7% during the fourth quarter. Raleigh Capital Management Inc. now owns 883 shares of the airline’s stock worth $30,000 after purchasing an additional 575 shares during the last quarter. Sanctuary Wealth Management L.L.C. grew its position in Southwest Airlines by 196.3% in the fourth quarter. Sanctuary Wealth Management L.L.C. now owns 889 shares of the airline’s stock valued at $30,000 after purchasing an additional 589 shares in the last quarter. TD Private Client Wealth LLC increased its stake in Southwest Airlines by 41.1% in the 3rd quarter. TD Private Client Wealth LLC now owns 1,184 shares of the airline’s stock valued at $35,000 after buying an additional 345 shares during the last quarter. Finally, VSM Wealth Advisory LLC bought a new stake in Southwest Airlines during the 4th quarter worth about $42,000. 80.82% of the stock is currently owned by institutional investors.

Southwest Airlines Company Profile

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.