Southwest Airlines (LUV) PT Set at $67.00 by Macquarie

Macquarie set a $67.00 price target on Southwest Airlines (NYSE:LUV) in a report published on Monday. The firm currently has a buy rating on the airline’s stock.

A number of other research analysts have also weighed in on LUV. Deutsche Bank reduced their price objective on shares of Southwest Airlines from $71.00 to $66.00 and set a buy rating for the company in a research note on Monday, June 11th. Edward Jones upgraded shares of Southwest Airlines from a hold rating to a buy rating in a research note on Tuesday, June 12th. Buckingham Research reduced their price objective on shares of Southwest Airlines from $68.00 to $66.00 and set a buy rating for the company in a research note on Wednesday, June 13th. Argus lowered shares of Southwest Airlines from a buy rating to a hold rating and reduced their price objective for the company from $66.99 to $49.76 in a research note on Friday, June 15th. Finally, Zacks Investment Research upgraded shares of Southwest Airlines from a sell rating to a hold rating in a research note on Monday, July 2nd. Five research analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the stock. Southwest Airlines presently has an average rating of Buy and a consensus target price of $69.30.

Southwest Airlines stock opened at $60.62 on Monday. Southwest Airlines has a 1-year low of $49.93 and a 1-year high of $66.99. The company has a market capitalization of $35.79 billion, a P/E ratio of 17.32, a price-to-earnings-growth ratio of 1.24 and a beta of 1.06. The company has a quick ratio of 0.64, a current ratio of 0.70 and a debt-to-equity ratio of 0.48.

Southwest Airlines (NYSE:LUV) last released its quarterly earnings data on Thursday, July 26th. The airline reported $1.26 earnings per share for the quarter, beating analysts’ consensus estimates of $1.23 by $0.03. Southwest Airlines had a net margin of 16.90% and a return on equity of 22.16%. The business had revenue of $5.74 billion during the quarter, compared to analyst estimates of $5.75 billion. During the same period in the previous year, the business earned $1.24 EPS. Southwest Airlines’s revenue was up .2% compared to the same quarter last year. Sell-side analysts forecast that Southwest Airlines will post 4.2 EPS for the current year.

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 12th. Shareholders of record on Wednesday, August 22nd were issued a $0.16 dividend. This represents a $0.64 annualized dividend and a yield of 1.06%. The ex-dividend date was Tuesday, August 21st. Southwest Airlines’s payout ratio is 18.29%.

In other Southwest Airlines news, SVP Mark R. Shaw sold 4,910 shares of the firm’s stock in a transaction on Monday, July 30th. The shares were sold at an average price of $58.35, for a total value of $286,498.50. Following the completion of the transaction, the senior vice president now directly owns 11,546 shares of the company’s stock, valued at approximately $673,709.10. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director John T. Montford sold 430 shares of the firm’s stock in a transaction on Tuesday, August 7th. The shares were sold at an average price of $58.27, for a total transaction of $25,056.10. Following the completion of the transaction, the director now directly owns 23,853 shares of the company’s stock, valued at $1,389,914.31. The disclosure for this sale can be found here. Over the last three months, insiders sold 11,470 shares of company stock valued at $674,941. Insiders own 0.23% of the company’s stock.

Several hedge funds and other institutional investors have recently bought and sold shares of LUV. Renaissance Technologies LLC bought a new stake in shares of Southwest Airlines during the 2nd quarter worth $55,219,000. Waddell & Reed Financial Inc. bought a new stake in shares of Southwest Airlines during the 2nd quarter worth $45,543,000. American Century Companies Inc. lifted its holdings in shares of Southwest Airlines by 33.9% during the 2nd quarter. American Century Companies Inc. now owns 3,500,152 shares of the airline’s stock worth $178,088,000 after acquiring an additional 886,325 shares during the last quarter. Morgan Stanley lifted its holdings in shares of Southwest Airlines by 37.8% during the 2nd quarter. Morgan Stanley now owns 3,167,424 shares of the airline’s stock worth $161,158,000 after acquiring an additional 868,643 shares during the last quarter. Finally, Point72 Asset Management L.P. lifted its holdings in shares of Southwest Airlines by 304.0% during the 1st quarter. Point72 Asset Management L.P. now owns 930,500 shares of the airline’s stock worth $53,299,000 after acquiring an additional 700,200 shares during the last quarter. 77.99% of the stock is owned by institutional investors.

About Southwest Airlines

Southwest Airlines Co operates a passenger airline that provides scheduled air transportation services in the United States and near-international markets. As of December 31, 2017, the company operated a total of 706 Boeing 737 aircraft; and served 100 destinations in 40 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as 10 near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos.

Further Reading: Compound Annual Growth Rate (CAGR)

Analyst Recommendations for Southwest Airlines (NYSE:LUV)

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