Analytical Lens: Exploring Southwest Airlines Co (LUV)’s Financial Story Through Ratios

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The closing price of Southwest Airlines Co (NYSE: LUV) was $28.58 for the day, up 2.22% from the previous closing price of $27.96. In other words, the price has increased by $2.22 from its previous closing price. On the day, 15.58 million shares were traded. LUV stock price reached its highest trading level at $28.98 during the session, while it also had its lowest trading level at $28.14.

Ratios:

Our analysis of LUV’s different ratios will help us gain a deeper understanding of the company. For the most recent quarter (mrq), Quick Ratio is recorded 0.72 and its Current Ratio is at 0.77. In the meantime, Its Debt-to-Equity ratio is 0.85 whereas as Long-Term Debt/Eq ratio is at 0.54.

On March 20, 2025, UBS Upgraded its rating to Neutral which previously was Sell and also upped its target price recommendation from $29 to $36.

Insider Transactions:

Also, insider trades can serve as a great indicator of what management thinks about the future direction of a stock’s price. A recent insider transaction in this stock occurred on Apr 30 ’25 when SARETSKY GREGG A bought 3,670 shares for $27.29 per share. The transaction valued at 100,169 led to the insider holds 14,881 shares of the business.

Breber Pierre R bought 10,000 shares of LUV for $268,877 on Apr 29 ’25. The Director now owns 44,000 shares after completing the transaction at $26.89 per share. On Apr 28 ’25, another insider, Hess David P, who serves as the Director of the company, bought 7,500 shares for $26.52 each. As a result, the insider paid 198,900 and bolstered with 23,156 shares of the company.

Valuation Measures:

Investors should consider key stock statistics when deciding whether to invest or divest. In the wake of the recent closing price, LUV now has a Market Capitalization of 16286770176 and an Enterprise Value of 16029764608. As of this moment, Southwest’s Price-to-Earnings (P/E) ratio for their current fiscal year is 33.94, and their Forward P/E ratio for the next fiscal year is 11.50. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 0.66. For the stock, the TTM Price-to-Sale (P/S) ratio is 0.59 while its Price-to-Book (P/B) ratio in mrq is 1.74. Its current Enterprise Value per Revenue stands at 0.581 whereas that against EBITDA is 8.477.

Stock Price History:

The Beta on a monthly basis for LUV is 1.17, which has changed by 0.09292543 over the last 52 weeks, in comparison to a change of 0.092895746 over the same period for the S&P500. Over the past 52 weeks, LUV has reached a high of $36.12, while it has fallen to a 52-week low of $23.58. The 50-Day Moving Average of the stock is -3.04%, while the 200-Day Moving Average is calculated to be -5.13%.

Shares Statistics:

LUV traded an average of 13.31M shares per day over the past three months and 15362020 shares per day over the past ten days. A total of 569.87M shares are outstanding, with a floating share count of 563.15M. Insiders hold about 1.18% of the company’s shares, while institutions hold 89.85% stake in the company. Shares short for LUV as of 1744675200 were 33100401 with a Short Ratio of 2.49, compared to 1741910400 on 35280603. Therefore, it implies a Short% of Shares Outstanding of 33100401 and a Short% of Float of 6.569999999999999.

Dividends & Splits

With its trailing 12-month dividend rate of 0.72, LUV has a forward annual dividend rate of 0.72. Against a Trailing Annual Dividend Yield of 0.025751075The stock’s 5-year Average Dividend Yield is 1.03. The current Payout Ratio is 95.45% for LUV, which recently paid a dividend on 2025-03-12 with an ex-dividend date of 1741737600. Stock splits for the company last occurred on 2001-02-16 when the company split stock in a 3:2 ratio.

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