Southwest Airlines Co. (NYSE:LUV) has experienced a drop of -1.62% in its stock price so far this year, raising questions about what analysts think is next for the company. In recent trading, Southwest Airlines saw 4.35 million shares changing hands, and its beta is currently measuring 1.17. The company’s per-share price level is $37.92, trading at -$0.63 or -1.65% at last check, giving it a market valuation of $22.64 billion. However, this recent trading price is still at a discount of -10.13% from its 52-week high of $41.76, but indicates a premium of 25.11% from its 52-week low of $28.40.
Analysts have given Southwest Airlines an average recommendation of Overweight, with a mean rating of 2.40. Out of the 21 analysts covering the stock, none have rated it as a Sell, while 2 have recommended it as Overweight. 10 analysts see it as a Hold, and 9 view it as a Buy. The company is expected to report an EPS of $1.1 in the current quarter.
While Southwest Airlines saw a drop of -1.65% in its stock price in the last trading session, it has remained in the green over the past five days. On Wednesday, July 12th, the stock reached its highest price level of $37.92, adding 4.07% to its value on that day. Year-to-date, Southwest Airlines has seen a performance increase of 12.61%, and over the past 30 days, it has shown a performance increase of 20.52%.
Looking at the company’s revenue forecast, Southwest Airlines expects its revenue growth to decrease by -15.40% in the current quarter, but anticipates a 92.00% increase in the next quarter. Overall, revenue growth for this year is estimated to rise by 11.80% compared to the previous financial year.
Analysts have assigned a consensus price target of $42.88 to Southwest Airlines’ stock, implying a rise of 11.57% from its current value. The low price target is projected to be $35.00, indicating a gain of 7.7% for the stock’s current value, while the high target is set at $60.00, suggesting a drop of -58.23% in reaching the projected high.
Southwest Airlines is performing comparatively well compared to other players in the industry. Over the past six months, the company has added 4.71% of value to its shares, showing an annual growth rate of 125.86%, while the industry’s growth rate is 19.10%. Additionally, Southwest Airlines recently raised its revenue forecast for fiscal year 2023.
In terms of shareholders, insiders possess 0.35% of the company’s total shares, while institutions own 77.85%. The top institutional holder of Southwest Airlines is The Vanguard Group, Inc., with 66.23 million shares worth $2.16 billion. Primecap Management Company holds the second-largest stake with 50.85 million shares worth $1.65 billion. Vanguard/Primecap Fund and Vanguard Total Stock Market Index Fund are the top two Mutual Funds that own Southwest Airlines’ shares.
Southwest Airlines is expected to release its next quarterly report on July 27th, and investors are optimistic about the company announcing better current-quarter dividends despite facing challenges associated with its mounting debt.
In conclusion, Southwest Airlines has faced a drop in its stock price this year, but analysts have an overall positive view of the company. It has shown strong performance in recent trading sessions and is projected to experience growth in revenue. However, investors should consider the diverse opinions of analysts and the potential risks associated with investing in the airline industry.
