Southwest Airlines Company (LUV) Stock Soars After Dividend Announcement

Southwest Airlines Company rose 1.4% Friday to $38.01 per share. As reported by Barrons: "Southwest Airlines ( ticker: LUV ) said it will resume paying a dividend. The company had suspended its payout in April 2020 owing to the pandemic." You can read more about it here. For those of you thinking about investing in the stock, here is a brief look at the company's fundamentals.

Southwest Airlines Co. operates as a passenger airline company that provide scheduled air transportation services in the United States and near-international markets. As of December 31, 2021, the company operated a total fleet of 728 Boeing 737 aircrafts; and served 121 destinations in 42 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as 10 near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos. The company belongs to the Industrials sector, which has an average price to earnings (P/E) ratio of 21.46 and an average price to book (P/B) ratio of 3.7. In contrast, Southwest Airlines Company has a trailing 12 month P/E ratio of 28.6 and a P/B ratio of 2.1.

Southwest Airlines Company has moved -6.1% over the last year compared to -15.7% for the S&P 500 -- a difference of 9.6%. Southwest Airlines Company has a 52 week high of $50.1 and a 52 week low of $30.2. At today's price of $38.01 per share, Southwest Airlines Company is -23.78% away from its target price of $49.87, and on average, analysts give the stock a rating of buy. 1.7% of the company's shares are linked to short positions, and 76.0% of the shares are owned by institutional investors.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.