How Worried Should Investors Be About Southwest Airlines Co (LUV)

Southwest Airlines Co (NYSE:LUV) does about 9.24M shares in volume on a normal day but saw 9459359 shares change hands in Monday’s trading. The company now has a market cap of 16.74B USD. Its current market price is $27.98, marking an increase of 2.27% compared to the previous close of $27.36. The 52 week high reached by this stock is $39.53 whilst the lowest price level in 52 weeks is $21.91.

Southwest Airlines Co (LUV) has a 20-day trading average at $27.66 and the current price is -29.22% off the 52-week high compared with 27.68% distance from its 52-week low. The 50-day simple moving average of the closing price is $28.83 and its 200-day simple moving average is $28.91. If we look at the stock’s price movements over the week, volatility stands at 1.97%, which increases to 2.58% over 1 month. It is also key to look at other market indicators of price movement for the stock, where we see that the relative strength index (RSI) is at 51.28 to suggest the stock is neutral.

The consensus objective for the share price is $27.52, suggesting that the stock has a potential downside of -1.67% over the period.

The company shares received a number of brokerage firm price updates over the past month, with the latest being on April 29, 2024 when Jefferies downgraded the stock to “Underperform” and issued a price target of between $28 and $20. Jefferies upgraded its price target at $20-$28.

Southwest Airlines Co (LUV) stock is up 2.04% over the week and 1.60% over the past month. Its price is -3.12% year-to-date and -3.42% over the past year.

To reach the target analysts have set, the stock logically needs to shrink -1.67 percent from here.

The company has a return on investment of 2.23% and return on equity of 4.16%. The price to earnings ratio (P/E ratio) amounts to 45.42 while the forward price to earnings ratio is 14.11. The beta has a value of 1.15. Price to book ratio is 1.64 and price to sales ratio is 0.63.