Verdence Capital Advisors LLC significantly increased its stake in Southwest Airlines Co. (NYSE: LUV) during the third quarter of 2023, raising ownership by an impressive 180.1%. The advisory firm now holds 28,157 shares of the airline’s stock after acquiring an additional 18,106 shares during the period, bringing the total value of its holdings to approximately $908,000.
This move reflects broader trends as several institutional investors have also made adjustments to their positions in Southwest Airlines. For instance, Elevation Point Wealth Partners LLC established a new stake in the second quarter valued at $25,000, while Quent Capital LLC invested around $27,000 during the third quarter. Other notable participants include Corsicana & Co., which purchased shares worth $27,000, and Caitong International Asset Management Co. Ltd., which acquired a stake valued at approximately $31,000.
Current Market Performance
As of the latest trading session, shares of Southwest Airlines opened at $42.87. The airline’s market capitalization stands at $22.17 billion, with a price-to-earnings ratio of 65.96 and a PEG ratio of 0.23. Over the past year, the stock has seen a low of $23.82 and a high of $45.02. Key financial indicators include a quick ratio of 0.42, a current ratio of 0.49, and a debt-to-equity ratio of 0.52. The stock’s 50-day moving average price is $39.13, while the 200-day moving average price is $34.83.
Southwest Airlines has also recently announced a quarterly dividend, which was paid on January 16, 2024. Shareholders of record on December 26, 2023 received a dividend of $0.18, translating to an annualized dividend of $0.72 and a yield of 1.7%. The company’s dividend payout ratio currently stands at 110.77%, indicating a commitment to returning value to shareholders.
Analyst Updates and Ratings
Recent evaluations from various research firms have provided mixed perspectives on Southwest Airlines. Notably, TD Cowen raised their price target on the stock from $31.00 to $42.00 while maintaining a “hold” rating as of December 12, 2023. Similarly, Barclays upgraded Southwest Airlines from “equal weight” to “overweight,” with a new target price of $56.00 as of December 16, 2023.
In contrast, Weiss Ratings reaffirmed a “hold” rating in a report dated December 29, 2023. The Jefferies Financial Group slightly adjusted their price objective from $33.00 to $34.00, also rating the stock as a “hold.” Coverage from BMO Capital Markets began with a “market perform” rating and a target price of $43.00.
MarketBeat.com reports that the consensus rating for the stock is “Hold,” with an average target price set at $41.79. Analysts have provided a variety of ratings, with six identifying the stock as a “Buy,” eleven as a “Hold,” and four as a “Sell.”
Founded in 1967 in Dallas, Texas, Southwest Airlines Co. operates as a low-cost carrier within the United States and near-international markets. The airline, known for its point-to-point service and primarily utilizing Boeing 737 aircraft, emphasizes competitive fares and customer-friendly policies such as open seating. Over the years, Southwest has established a reputation for efficient operations, including quick turnaround times and high aircraft utilization.
For more detailed insights into Southwest Airlines and its market performance, stakeholders and interested parties can access further information through reliable financial sources.
