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Should You Buy Southwest Airlines Co. (NYSE:LUV) Right Now? Here’s How to Decide

Southwest Airlines Co. (NYSE:LUV) previous close was $61.46 while the outstanding shares total 591.00M. The firm has a beta of 1.25. LUV’s shares traded lower over the last trading session, losing -0.18% on 06/01/21. The shares fell to a low of $61.09 before closing at $61.35. Intraday shares traded counted 5.23 million, which was 21.34% higher than its 30-day average trading volume of 6.65M. The stock’s Relative Strength Index (RSI) is 51.63, with weekly volatility at 1.79% and ATR at 1.44. The LUV stock’s 52-week price range has touched low of $30.24 and a $64.75 high.

Investors have identified the Airlines company Southwest Airlines Co. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $36.44 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Southwest Airlines Co. (LUV) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For LUV, the company has in raw cash 11.97 billion on their books with 225.0 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 16.1 billion total, with 8.18 billion as their total liabilities.

LUV were able to record 550.0 million as free cash flow during the 07/22/2021 quarter of the year, this saw their quarterly net cash flow reduce by 908.0 million. In cash movements, the company had a total of 645.0 million as operating cash flow.

Potential earnings growth for Southwest Airlines Co. (LUV)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 07/22/2021 quarter of the year, Southwest Airlines Co. recorded a total of 2.05 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -106.34% coming in sequential stages and their sales for the 07/22/2021 quarter increasing by 1.9%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 1.08 billion trying to sell their products during the last quarter, with the result yielding a gross income of 974.0 million. This allows shareholders to hold on to 591.00M with the recently reported earning now reading 0.20 cents per share. This is a figure that compared to analyst’s prediction for their 07/22/2021 (-1.72 cents a share).

Having a look at the company’s valuation, the company is expected to record 3.24 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on LUV sounds very interesting.

Is the stock of LUV attractive?

In related news, Director, MONTFORD JOHN T sold 500 shares of the company’s stock in a transaction that recorded on Mar 15. The sale was performed at an average price of 61.85, for a total value of 30,925. As the sale deal closes, the EVP Corporate Services, Jordan Robert E now sold 28,795 shares of the company’s stock, valued at 1,727,196. Also, EVP, Daily Operations, Wells Gregory D sold 15,909 shares of the company’s stock in a deal that was recorded on Feb 25. The shares were price at an average price of 57.46 per share, with a total market value of 914,131. Following this completion of acquisition, the EVP Daily Operations, Kasher Alan now holds 2,000 shares of the company’s stock, valued at 115,606. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.30%.

14 out of 22 analysts covering the stock have rated it a Buy, while 5 have maintained a Hold recommendation on Southwest Airlines Co.. 0 analysts has assigned a Sell rating on the LUV stock. The 12-month mean consensus price target for the company’s shares has been set at $69.65.

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