Brokerages Set Southwest Airlines Co. (NYSE:LUV) Target Price at $42.11

Southwest Airlines Co. (NYSE:LUV) has earned an average rating of “Hold” from the twenty-two brokerages that are currently covering the firm, MarketBeat Ratings reports. Four analysts have rated the stock with a sell rating, twelve have issued a hold rating and six have issued a buy rating on the company. The average 12 month target price among brokers that have issued a report on the stock in the last year is $41.7895.

A number of equities analysts have weighed in on LUV shares. Weiss Ratings reissued a “hold (c)” rating on shares of Southwest Airlines in a research report on Monday, December 29th. JPMorgan Chase & Co. upgraded Southwest Airlines from an “underweight” rating to an “overweight” rating and boosted their price target for the stock from $36.00 to $60.00 in a research note on Friday, January 9th. Barclays raised Southwest Airlines from an “equal weight” rating to an “overweight” rating and increased their price target for the company from $34.00 to $56.00 in a report on Tuesday, December 16th. Raymond James Financial lifted their price objective on Southwest Airlines from $42.00 to $49.00 and gave the stock an “outperform” rating in a report on Friday, December 19th. Finally, Susquehanna upped their target price on Southwest Airlines from $35.00 to $45.00 and gave the company a “neutral” rating in a research report on Friday, January 9th.

Southwest Airlines Stock Up 1.3%

Shares of NYSE:LUV opened at $43.11 on Friday. The company has a market capitalization of $22.29 billion, a price-to-earnings ratio of 66.32, a price-to-earnings-growth ratio of 0.23 and a beta of 1.16. The company has a 50 day moving average of $38.31 and a two-hundred day moving average of $34.56. Southwest Airlines has a 52-week low of $23.82 and a 52-week high of $45.02. The company has a quick ratio of 0.42, a current ratio of 0.49 and a debt-to-equity ratio of 0.52.

Southwest Airlines (NYSE:LUV) last posted its earnings results on Wednesday, October 22nd. The airline reported $0.11 EPS for the quarter, topping analysts’ consensus estimates of $0.01 by $0.10. The business had revenue of $6.95 billion for the quarter, compared to analysts’ expectations of $6.93 billion. Southwest Airlines had a net margin of 1.38% and a return on equity of 6.39%. The business’s revenue for the quarter was up 1.1% compared to the same quarter last year. During the same period in the previous year, the company posted $0.15 earnings per share. As a group, analysts forecast that Southwest Airlines will post 1.55 earnings per share for the current fiscal year.

Southwest Airlines Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, January 16th. Investors of record on Friday, December 26th will be issued a $0.18 dividend. The ex-dividend date of this dividend is Friday, December 26th. This represents a $0.72 annualized dividend and a yield of 1.7%. Southwest Airlines’s dividend payout ratio is currently 110.77%.

Institutional Investors Weigh In On Southwest Airlines

Hedge funds and other institutional investors have recently modified their holdings of the stock. Arrowstreet Capital Limited Partnership lifted its position in shares of Southwest Airlines by 2,403.8% during the second quarter. Arrowstreet Capital Limited Partnership now owns 10,120,368 shares of the airline’s stock worth $328,305,000 after purchasing an additional 9,716,160 shares during the last quarter. Ameriprise Financial Inc. raised its stake in Southwest Airlines by 43.7% during the third quarter. Ameriprise Financial Inc. now owns 12,335,167 shares of the airline’s stock valued at $393,615,000 after buying an additional 3,753,183 shares in the last quarter. SG Americas Securities LLC lifted its holdings in Southwest Airlines by 2,468.4% during the 4th quarter. SG Americas Securities LLC now owns 3,752,352 shares of the airline’s stock worth $155,085,000 after buying an additional 3,606,255 shares during the last quarter. CIBC Bancorp USA Inc. acquired a new position in shares of Southwest Airlines in the 3rd quarter worth approximately $62,340,000. Finally, JPMorgan Chase & Co. increased its holdings in shares of Southwest Airlines by 13.6% in the 3rd quarter. JPMorgan Chase & Co. now owns 12,218,086 shares of the airline’s stock valued at $389,879,000 after acquiring an additional 1,459,235 shares during the last quarter. Institutional investors own 80.82% of the company’s stock.

Southwest Airlines Company Profile

Southwest Airlines Co is a U.S.-based low-cost carrier that operates a point-to-point domestic and near-international airline network. Headquartered in Dallas, Texas, the company primarily flies Boeing 737 aircraft and offers no-frills, single-class service designed to keep fares competitive. Southwest’s operating model emphasizes high aircraft utilization, quick turnaround times and an open seating policy, allowing customers to board and select seats on a first-come, first-served basis.

Founded in 1967 by Herb Kelleher and Rollin King as Air Southwest Company, Southwest began commercial service in 1971, initially connecting Dallas, Houston and San Antonio.