Susquehanna Downgrades Southwest Airlines (NYSE:LUV) to Neutral

Southwest Airlines (NYSE:LUV) was downgraded by stock analysts at Susquehanna from a “positive” rating to a “neutral” rating in a report issued on Thursday, PriceTargets.com reports. They presently have a $50.00 price objective on the airline’s stock, down from their previous price objective of $52.00. Susquehanna’s price objective suggests a potential upside of 9.12% from the stock’s current price.

Several other equities analysts have also commented on the company. MKM Partners lowered Southwest Airlines from a “buy” rating to a “neutral” rating and set a $45.00 price objective for the company. in a research report on Monday, January 3rd. Morgan Stanley lowered their price target on Southwest Airlines from $71.00 to $65.00 and set an “overweight” rating for the company in a research report on Thursday, December 9th. Deutsche Bank Aktiengesellschaft lowered their price target on Southwest Airlines from $64.00 to $60.00 and set a “buy” rating for the company in a research report on Thursday, December 9th. Jefferies Financial Group lowered Southwest Airlines from a “buy” rating to a “hold” rating and lowered their price target for the stock from $60.00 to $45.00 in a research report on Thursday, December 9th. Finally, JPMorgan Chase & Co. raised Southwest Airlines from a “neutral” rating to an “overweight” rating and lifted their price target for the stock from $64.00 to $70.00 in a research report on Friday, October 1st. One investment analyst has rated the stock with a sell rating, eight have issued a hold rating and ten have issued a buy rating to the company. According to data from MarketBeat.com, Southwest Airlines presently has an average rating of “Hold” and an average price target of $55.72.

NYSE:LUV opened at $45.82 on Thursday. The stock has a market cap of $27.12 billion, a P/E ratio of -916.40, a price-to-earnings-growth ratio of 3.91 and a beta of 1.10. The firm’s fifty day simple moving average is $44.60 and its 200 day simple moving average is $48.50. Southwest Airlines has a twelve month low of $38.66 and a twelve month high of $64.75. The company has a quick ratio of 1.98, a current ratio of 2.03 and a debt-to-equity ratio of 1.07.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings data on Wednesday, October 20th. The airline reported ($0.23) EPS for the quarter, beating the consensus estimate of ($0.27) by $0.04. The business had revenue of $4.68 billion during the quarter, compared to analyst estimates of $4.58 billion. Southwest Airlines had a negative return on equity of 22.34% and a net margin of 0.02%. The company’s revenue for the quarter was up 161.0% on a year-over-year basis. During the same quarter last year, the firm posted ($1.99) earnings per share. On average, analysts expect that Southwest Airlines will post -2.19 EPS for the current fiscal year.

In other Southwest Airlines news, Director Thomas W. Gilligan sold 11,188 shares of the business’s stock in a transaction dated Wednesday, October 27th. The stock was sold at an average price of $47.34, for a total transaction of $529,639.92. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 0.32% of the stock is currently owned by company insiders.

Institutional investors have recently added to or reduced their stakes in the business. Massmutual Trust Co. FSB ADV grew its stake in shares of Southwest Airlines by 138.3% during the 2nd quarter. Massmutual Trust Co. FSB ADV now owns 491 shares of the airline’s stock valued at $26,000 after purchasing an additional 285 shares during the period. FNY Investment Advisers LLC bought a new position in shares of Southwest Airlines during the 3rd quarter valued at approximately $25,000. Herold Advisors Inc. bought a new position in shares of Southwest Airlines during the 3rd quarter valued at approximately $30,000. Salem Investment Counselors Inc. grew its stake in shares of Southwest Airlines by 85.8% during the 2nd quarter. Salem Investment Counselors Inc. now owns 758 shares of the airline’s stock valued at $40,000 after acquiring an additional 350 shares during the period. Finally, Arlington Partners LLC bought a new position in shares of Southwest Airlines during the 3rd quarter valued at approximately $42,000. Institutional investors and hedge funds own 77.06% of the company’s stock.

About Southwest Airlines

Southwest Airlines Co engages in the management of a passenger airline. It offers ancillary services such as earlybird check-in, upgraded boarding, and transportation of pets and unaccompanied minors. The firm operates in U.S. states, District of Columbia, the Commonwealth of Puerto Rico, Mexico, Jamaica, The Bahamas, Aruba, Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos.

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Analyst Recommendations for Southwest Airlines (NYSE:LUV)

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