Southwest Airlines Sees Unusually High Options Volume (NYSE:LUV)

Southwest Airlines Co. (NYSE:LUV) was the target of some unusual options trading on Wednesday. Traders bought 26,202 put options on the stock. This is an increase of 40% compared to the average daily volume of 18,729 put options.

Southwest Airlines Stock Down 1.6 %

NYSE:LUV traded down $0.55 during trading hours on Wednesday, hitting $34.12. 4,795,389 shares of the company’s stock traded hands, compared to its average volume of 9,117,684. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.85 and a current ratio of 0.92. Southwest Airlines has a twelve month low of $23.58 and a twelve month high of $36.12. The stock’s fifty day moving average price is $31.23 and its two-hundred day moving average price is $31.46. The firm has a market cap of $20.22 billion, a P/E ratio of 47.34, a P/E/G ratio of 0.97 and a beta of 1.10.

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

Southwest Airlines Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 2nd. Investors of record on Wednesday, March 12th will be paid a $0.18 dividend. This represents a $0.72 annualized dividend and a dividend yield of 2.11%. The ex-dividend date of this dividend is Wednesday, March 12th. Southwest Airlines’s payout ratio is presently 100.00%.

Insider Activity

In related news, Director C. David Cush acquired 5,000 shares of the business’s stock in a transaction that occurred on Wednesday, March 12th. The stock was purchased at an average cost of $30.03 per share, for a total transaction of $150,150.00. Following the transaction, the director now directly owns 19,011 shares of the company’s stock, valued at approximately $570,900.33. This trade represents a 35.69 % increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Insiders own 0.33% of the company’s stock.

Institutional Investors Weigh In On Southwest Airlines

Institutional investors and hedge funds have recently bought and sold shares of the business. Kestra Investment Management LLC acquired a new position in Southwest Airlines in the fourth quarter worth $26,000. Raleigh Capital Management Inc. increased its position in Southwest Airlines by 186.7% in 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 period. Sanctuary Wealth Management L.L.C. raised its holdings in Southwest Airlines by 196.3% during the 4th quarter. Sanctuary Wealth Management L.L.C. now owns 889 shares of the airline’s stock worth $30,000 after purchasing an additional 589 shares during the last quarter. TD Private Client Wealth LLC lifted its position in Southwest Airlines by 41.1% during the 3rd quarter. TD Private Client Wealth LLC now owns 1,184 shares of the airline’s stock valued at $35,000 after purchasing an additional 345 shares during the period. Finally, VSM Wealth Advisory LLC acquired a new stake in shares of Southwest Airlines during the 4th quarter worth approximately $42,000. Institutional investors own 80.82% of the company’s stock.

Analyst Ratings Changes

Several equities research analysts have issued reports on the stock. UBS Group raised shares of Southwest Airlines from a “sell” rating to a “neutral” rating and raised their price target for the stock from $29.00 to $36.00 in a research note on Thursday, March 20th. Morgan Stanley reaffirmed an “overweight” rating and set a $42.00 price target on shares of Southwest Airlines in a research report on Wednesday, December 11th. JPMorgan Chase & Co. boosted their price objective on shares of Southwest Airlines from $25.00 to $30.00 and gave the company an “underweight” rating in a research note on Tuesday, March 18th. Melius raised Southwest Airlines from a “sell” rating to a “hold” rating in a research report on Thursday, March 20th. Finally, Argus raised Southwest Airlines from a “hold” rating to a “buy” rating and set a $35.00 price target for the company in a research report on Tuesday, February 11th. Five research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and four have assigned a buy rating to the stock. According to MarketBeat.com, Southwest Airlines presently has an average rating of “Hold” and a consensus price target of $32.52.

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.