Southwest Airlines Company (NYSE:LUV) – Equities researchers at Imperial Capital cut their Q3 2017 earnings estimates for shares of Southwest Airlines in a research note issued to investors on Friday. Imperial Capital analyst M. Derchin now anticipates that the airline will post earnings of $0.91 per share for the quarter, down from their previous estimate of $1.04. Imperial Capital currently has a “Outperform” rating on the stock. Imperial Capital also issued estimates for Southwest Airlines’ FY2017 earnings at $3.75 EPS and FY2018 earnings at $4.90 EPS.
A number of other analysts have also commented on the company. Bank of America Corporation boosted their price objective on Southwest Airlines from $62.00 to $75.00 and gave the stock a “buy” rating in a report on Friday, June 30th. BidaskClub lowered Southwest Airlines from a “buy” rating to a “hold” rating in a report on Monday, July 24th. Zacks Investment Research lowered Southwest Airlines from a “buy” rating to a “hold” rating in a report on Monday, June 5th. Wolfe Research downgraded Southwest Airlines from an “outperform” rating to a “market perform” rating and set a $63.00 target price on the stock. in a research note on Monday, July 10th. They noted that the move was a valuation call. Finally, Vetr upgraded Southwest Airlines from a “buy” rating to a “strong-buy” rating and set a $64.53 target price on the stock in a research note on Thursday, July 27th. One analyst has rated the stock with a sell rating, five have assigned a hold rating, twelve have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. The stock currently has an average rating of “Buy” and an average target price of $66.10.
Southwest Airlines (LUV) opened at 53.60 on Monday. Southwest Airlines has a 12 month low of $36.31 and a 12 month high of $64.39. The company’s 50-day moving average price is $54.25 and its 200 day moving average price is $57.03. The firm has a market capitalization of $32.08 billion, a PE ratio of 16.44 and a beta of 1.29.
Southwest Airlines (NYSE:LUV) last issued its quarterly earnings results on Thursday, July 27th. The airline reported $1.24 EPS for the quarter, beating the consensus estimate of $1.20 by $0.04. Southwest Airlines had a return on equity of 26.07% and a net margin of 9.63%. The firm had revenue of $5.74 billion during the quarter, compared to analysts’ expectations of $5.73 billion. During the same period in the prior year, the firm posted $1.19 earnings per share. The business’s quarterly revenue was up 6.7% compared to the same quarter last year.
The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 14th. Investors of record on Thursday, August 24th will be paid a $0.125 dividend. The ex-dividend date of this dividend is Tuesday, August 22nd. This represents a $0.50 annualized dividend and a yield of 0.93%. Southwest Airlines’s payout ratio is 15.34%.
Southwest Airlines announced that its board has initiated a stock repurchase program on Wednesday, May 17th that authorizes the company to buyback $2.00 billion in outstanding shares. This buyback authorization authorizes the airline to reacquire up to 5.8% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s board of directors believes its stock is undervalued.
In other news, Director William H. Dr Cunningham acquired 4,500 shares of the company’s stock in a transaction that occurred on Friday, August 11th. The shares were acquired at an average price of $54.00 per share, for a total transaction of $243,000.00. Following the completion of the purchase, the director now owns 66,969 shares in the company, valued at $3,616,326. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 0.21% of the stock is currently owned by corporate insiders.
Institutional investors have recently bought and sold shares of the stock. BDO Wealth Advisors LLC purchased a new stake in shares of Southwest Airlines during the second quarter worth $102,000. Guardian Life Insurance Co. of America lifted its position in shares of Southwest Airlines by 0.6% during the first quarter. Guardian Life Insurance Co. of America now owns 2,374 shares of the airline’s stock worth $128,000 after acquiring an additional 15 shares in the last quarter. Pittenger & Anderson Inc. lifted its position in shares of Southwest Airlines by 13.5% during the second quarter. Pittenger & Anderson Inc. now owns 2,100 shares of the airline’s stock worth $130,000 after acquiring an additional 250 shares in the last quarter. Van ECK Associates Corp lifted its position in shares of Southwest Airlines by 6.6% during the first quarter. Van ECK Associates Corp now owns 2,502 shares of the airline’s stock worth $135,000 after acquiring an additional 154 shares in the last quarter. Finally, National Pension Service purchased a new stake in shares of Southwest Airlines during the second quarter worth $141,000. Institutional investors and hedge funds own 79.42% of the company’s stock.
Southwest Airlines Company Profile
Southwest Airlines Co (Southwest) operates Southwest Airlines, a passenger airline that provides scheduled air transportation in the United States and near-international markets. The Company provides point-to-point service. The Company offers ancillary service offerings, such as Southwest’s EarlyBird Check-In and transportation of pets and unaccompanied minors, in accordance with Southwest’s respective policies.
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