Southwest Airlines stock plunges on lower fares

Southwest Airlines pilot performs a preflight check on an aircraft at Hartsfield–Jackson Atlanta International Airport in Atlanta. Southwest Airlines reports financial results Wednesday O

For the reporting quarter, equity analysts expect the stock to deliver $0.88 in earnings per share (EPS). Revenue was short of expectations, at $5.14 billion versus $5.16 billion estimated according to Bloomberg.

Southwest Airlines reported revenues of $5,139 million, which edged past the Zacks Consensus Estimate of $5,132 million. Once the market opened, shares fell as far as 11.2% after the company released its third-quarter results, before rebounding to decline 8.5%, or $38.40 a share. Morgan Stanley reissued a "hold" rating and set a $43.00 price target on shares of Southwest Airlines in a report on Sunday, August 21st. The company had a trading volume of 17,015,604 shares. The stock stands 6.34% above the average-price of 50 days and 4.27% compared with the SMA 20.

BAC is trading -5.87% below its 52-week high and 54.50% above its 52-week low. The company has a market capitalization of $23.09 billion, a PE ratio of 9.87 and a beta of 0.80. Post opening the session at $42.15, the shares hit an intraday low of $41.71 and an intraday high of $42.725 and the price fluctuated in this range throughout the day.Shares ended Tuesday session in Red.

Investors were particularly disturbed by Southwest's forecast that a key figure revenue for every seat flown one mile would decline again in the fourth quarter, and likely at a faster pace than in the third quarter. Finally, Sanford C. Bernstein began coverage on Southwest Airlines in a report on Monday, October 10th.

In related news, COO De Ven Michael G. Van acquired 4,200 shares of Southwest Airlines stock in a transaction on Wednesday, August 3rd. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this hyperlink.

Southwest CEO Gary Kelly vowed that he would "manage our growth prudently". Year to Date performance value (YTD perf) value is -1.9%. The disclosure for this purchase can be found here.

Other hedge funds have also added to or reduced their stakes in the company. (JBLU - Analyst Report), Spirit Airlines Inc. Finally, Nordea Investment Management AB boosted its stake in Southwest Airlines by 0.4% in the second quarter. (NYSE:HST) now has mean rating of 2.80 while 1 analysts have commented the shares as "BUY", 4 recommended as "OUTPERFORM" and 13 commented as "HOLD". Institutional investors and hedge funds own 78.41% of the company's stock. This is no way is a recommendation to buy or sell Southwest Airlines Co. Southwest's competitors - spanning the spectrum from business-focused airlines like Delta Air Lines (NYSE: DAL) to leisure-focused budget carriers like Spirit Airlines (NASDAQ: SAVE) - are projecting that unit revenue will start to recover next quarter.



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