Southwest Airlines (NYSE:LUV) Earns Hold Rating from Deutsche Bank Aktiengesellschaft

Deutsche Bank Aktiengesellschaft reissued their hold rating on shares of Southwest Airlines (NYSE:LUV) in a report released on Friday, Benzinga reports. Deutsche Bank Aktiengesellschaft currently has a $29.00 price target on the airline’s stock, down from their prior price target of $32.00.

Other equities research analysts have also issued reports about the company. Raymond James reiterated an outperform rating and issued a $30.00 price objective (down from $33.00) on shares of Southwest Airlines in a research report on Friday, April 26th. Citigroup lifted their price objective on Southwest Airlines from $27.50 to $29.00 and gave the stock a neutral rating in a research report on Monday, June 17th. Melius reiterated a sell rating and issued a $26.00 price objective on shares of Southwest Airlines in a research report on Monday, June 10th. StockNews.com lowered Southwest Airlines from a hold rating to a sell rating in a research report on Friday, April 12th. Finally, Barclays lifted their price target on Southwest Airlines from $26.00 to $27.00 and gave the company an equal weight rating in a research report on Wednesday, July 10th. Five analysts have rated the stock with a sell rating, ten have assigned a hold rating and three have assigned a buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of Hold and a consensus target price of $28.50.

Southwest Airlines Stock Performance

Shares of NYSE LUV opened at $26.31 on Friday. The stock’s 50-day moving average is $27.77 and its 200 day moving average is $29.17. The company has a current ratio of 0.90, a quick ratio of 0.85 and a debt-to-equity ratio of 0.48. Southwest Airlines has a 1-year low of $21.91 and a 1-year high of $35.18. The stock has a market cap of $15.75 billion, a price-to-earnings ratio of 41.76, a P/E/G ratio of 2.98 and a beta of 1.15.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings results on Thursday, July 25th. The airline reported $0.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.51 by $0.07. Southwest Airlines had a return on equity of 5.92% and a net margin of 0.41%. The business had revenue of $7.40 billion for the quarter, compared to analyst estimates of $7.32 billion. During the same period last year, the company earned $1.09 EPS. Southwest Airlines’s revenue for the quarter was up 5.2% compared to the same quarter last year. On average, sell-side analysts anticipate that Southwest Airlines will post 0.62 EPS for the current fiscal year.

Southwest Airlines Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, July 10th. Shareholders of record on Wednesday, June 19th were issued a $0.18 dividend. This represents a $0.72 annualized dividend and a yield of 2.74%. The ex-dividend date of this dividend was Tuesday, June 18th. Southwest Airlines’s dividend payout ratio (DPR) is 114.29%.

Institutional Investors Weigh In On Southwest Airlines

Hedge funds have recently added to or reduced their stakes in the stock. Hexagon Capital Partners LLC lifted its holdings in shares of Southwest Airlines by 374.0% during the fourth quarter. Hexagon Capital Partners LLC now owns 858 shares of the airline’s stock valued at $25,000 after purchasing an additional 677 shares in the last quarter. Capital Advisors Ltd. LLC lifted its holdings in shares of Southwest Airlines by 82.8% during the fourth quarter. Capital Advisors Ltd. LLC now owns 914 shares of the airline’s stock valued at $26,000 after purchasing an additional 414 shares in the last quarter. First Horizon Advisors Inc. bought a new position in shares of Southwest Airlines during the fourth quarter valued at $29,000. ICA Group Wealth Management LLC bought a new position in shares of Southwest Airlines during the fourth quarter valued at $29,000. Finally, CVA Family Office LLC lifted its holdings in shares of Southwest Airlines by 179.5% during the second quarter. CVA Family Office LLC now owns 1,034 shares of the airline’s stock valued at $30,000 after purchasing an additional 664 shares in the last quarter. 80.82% of the stock is 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.