Stifel Nicolaus Downgrades Southwest Airlines (NYSE:LUV) to Hold

Southwest Airlines (NYSE:LUV) was downgraded by investment analysts at Stifel Nicolaus from a “buy” rating to a “hold” rating in a research report issued on Monday, Marketbeat Ratings reports. They presently have a $60.00 price target on the airline’s stock, down from their previous price target of $75.00. Stifel Nicolaus’ target price indicates a potential upside of 13.38% from the company’s current price.

A number of other equities research analysts have also recently issued reports on LUV. Bank of America upgraded Southwest Airlines to a “buy” rating and set a $65.00 price objective for the company in a report on Monday, September 23rd. Macquarie upgraded Southwest Airlines from a “neutral” rating to an “outperform” rating and set a $67.00 price objective for the company in a report on Friday, September 13th. Tigress Financial restated a “buy” rating on shares of Southwest Airlines in a report on Thursday, September 26th. Berenberg Bank assumed coverage on Southwest Airlines in a report on Friday, September 6th. They set a “hold” rating and a $57.00 price objective for the company. Finally, Argus cut Southwest Airlines from a “buy” rating to a “hold” rating in a report on Tuesday, August 13th. Two equities research analysts have rated the stock with a sell rating, eleven have issued a hold rating and eight have assigned a buy rating to the company. The company currently has an average rating of “Hold” and an average target price of $58.07.

Shares of NYSE:LUV opened at $52.92 on Monday. Southwest Airlines has a 12-month low of $44.28 and a 12-month high of $58.77. The stock has a market cap of $28.75 billion, a PE ratio of 12.48, a P/E/G ratio of 1.40 and a beta of 1.48. The business has a 50 day moving average of $53.80 and a 200-day moving average of $52.20. The company has a quick ratio of 0.59, a current ratio of 0.64 and a debt-to-equity ratio of 0.37.

Southwest Airlines (NYSE:LUV) last issued its quarterly earnings data on Thursday, July 25th. The airline reported $1.37 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.35 by $0.02. Southwest Airlines had a return on equity of 24.12% and a net margin of 10.73%. The company had revenue of $5.91 billion during the quarter, compared to analysts’ expectations of $5.94 billion. During the same quarter in the previous year, the company posted $1.26 earnings per share. The business’s revenue was up 2.9% on a year-over-year basis. Equities research analysts expect that Southwest Airlines will post 4.27 earnings per share for the current year.

Hedge funds have recently modified their holdings of the stock. Advisor Partners LLC boosted its stake in shares of Southwest Airlines by 7.4% in the second quarter. Advisor Partners LLC now owns 15,303 shares of the airline’s stock valued at $777,000 after buying an additional 1,056 shares during the period. Grimes & Company Inc. boosted its stake in shares of Southwest Airlines by 9.2% in the second quarter. Grimes & Company Inc. now owns 142,611 shares of the airline’s stock valued at $7,242,000 after buying an additional 12,068 shares during the period. Little House Capital LLC bought a new stake in shares of Southwest Airlines in the second quarter valued at approximately $5,703,000. Curbstone Financial Management Corp boosted its stake in shares of Southwest Airlines by 4.4% in the second quarter. Curbstone Financial Management Corp now owns 16,350 shares of the airline’s stock valued at $830,000 after buying an additional 690 shares during the period. Finally, AMG National Trust Bank bought a new stake in shares of Southwest Airlines in the second quarter valued at approximately $1,701,000. Institutional investors and hedge funds own 82.08% of the company’s stock.

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, 2018, the company operated a total of 750 Boeing 737 aircraft; and served 99 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.

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Analyst Recommendations for Southwest Airlines (NYSE:LUV)

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