Potential Investment: A Long-Term Look at Southwest Airlines Co. (LUV)

MONTFORD JOHN T, Director, subtracted 980 shares of Southwest Airlines Co. (LUV) from its portfolio at the rate of $51.27 per share valuing $50,241 on Dec 12. The insider left behind 20,103 shares of the company to its portfolio. Currently, the 1st Resistance Point for this stock is $53.13, with a 2nd Resistance Point sitting at $53.48. Meanwhile, this company’s stock has a 1st Support Level at $52.30 and a 2nd Support Level at $51.82. Before making a move on any particular stock, readers often pay close attention to support and resistance markers. The last reported price for shares of Southwest Airlines Co. (LUV) was $52.79. Southwest Airlines Co. (LUV) stock has lost -$1.55, or -2.85%, in the past five days. In the last full month, these shares have gained $0.69, or 1.32%. In the past three months, this stock’s price has risen by $0.90, or 1.73%. This year-to-date, Southwest Airlines Co. (LUV) shares have gained $6.31, or 13.58%.

Analyzing price projection indicators is a helpful way to determine whether a potential stock buy is a wise choice for profits in the short term, medium term, and long term. For Southwest Airlines Co. (LUV) stock, 50% of short-term indicators suggest that these shares are a “ Hold .” Meanwhile, 100% of medium-term indicators point to this stock being a “ Buy .” Looking further ahead, 50% of long-term indicators suggest that this stock is a “ Buy .”

With 537,517 K shares outstanding, this company currently has a market capitalization of $28,375,524K. Southwest Airlines Co. (LUV) generates $21,965 M in annual sales, amounting to annual net income of $2,465 M. This stock has generated a 1-Year Total Return of -14.27%, a 3-Year Total Return of 37.22%, and a 5-year Total Return of 72.69%. This stock’s 5-Year Dividend Growth is 369.23%, with its most recent dividend valued at $0.180 per share on 08/20/19. Its Annual Dividend Yield is 1.36%, and its Annual Dividend Rate is 0.72.

In the most recently-reported fiscal quarter, which ended in 06/19, Southwest Airlines Co. (LUV) reported earnings of $1.37 per share. Wall Street analysts, on average, were expecting the company to report earnings of $1.35 per share, representing a 0.02 difference and 1.48% surprise. In the previous quarter ending in 03/19, the reported earnings of $0.70 represented a 0.09 difference from the consensus estimate calling for $0.61 per share, which was a 14.75% surprise.

For the current fiscal quarter, which is set to end in 09/2019, the average earnings estimate is $1.09 per share. This estimate came from a total of 11 Wall Street Analysts. Of those market experts, the high estimate was $1.12 and the low estimate was $1.02. In the year-ago quarter, Southwest Airlines Co. (LUV) generated per-share earnings of $1.08. If the analysts are correct about the current quarter’s earnings, the growth will be +0.93%.

Turning our focus now to insider trading activity, there have been 0 purchases (0 shares in total) and 0 sale (0 shares in total) in the last 3 months. In the last 6 months, there have been 10 insider buys amounting to 30,770 shares and 0 insider sales amounting to 0 shares. In the past full year, 26 insider purchases were made (involving 421,099 shares) and 38 insider sell-offs equivalent to 141,690 shares.

Moving onto liquidity, Southwest Airlines Co. (LUV) has a Current Ratio of 0.64, a Quick Ratio of 0.58 and a Cash Ratio of 0.47. Looking at this company’s capital structure, its Total Debt to Total Equity is 34.76, its Total Debt to Total Capital is 25.79, and its Total Debt to Total Assets is now 12.54. Looking even further ahead into the future, its Long-Term Debt to Equity is 33.05 and its Long-Term Debt to Total Capital is 28.61.