Will Southwest Airlines Co Go Down Anytime Soon? Option Trader Doubt That

 Will Southwest Airlines Co Go Down Anytime Soon? Option Trader Doubt That

In today’s session Southwest Airlines Co (LUV) registered an unusually high (2,258) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the December, 2016 call, expecting serious LUV increase. With 2,258 contracts traded and 38924 open interest for the Dec, 16 contract, it seems this is a quite bullish bet. The option with symbol: LUV161216C00039000 closed last at: $2.45 or 22.5% up. About 2.37 million shares traded hands. Southwest Airlines Co (NYSE:LUV) has declined 7.45% since April 5, 2016 and is downtrending. It has underperformed by 9.41% the S&P500.

Southwest Airlines Co (NYSE:LUV) Ratings Coverage

Out of 11 analysts covering Southwest Airlines Co. (NYSE:LUV), 8 rate it a “Buy”, 0 “Sell”, while 3 “Hold”. This means 73% are positive. Southwest Airlines Co. has been the topic of 26 analyst reports since July 30, 2015 according to StockzIntelligence Inc. As per Friday, January 22, the company rating was maintained by Credit Suisse. The stock has “Overweight” rating given by JP Morgan on Thursday, October 27. The stock of Southwest Airlines Co (NYSE:LUV) has “Neutral” rating given on Friday, July 22 by Buckingham Research. Bernstein initiated Southwest Airlines Co (NYSE:LUV) on Tuesday, October 11 with “Outperform” rating. The rating was maintained by Deutsche Bank on Friday, July 24 with “Buy”. The stock has “Strong-Buy” rating given by Vetr on Tuesday, August 18. The stock of Southwest Airlines Co (NYSE:LUV) has “Buy” rating given on Tuesday, July 26 by Evercore. As per Friday, July 24, the company rating was maintained by Cowen & Co. Morgan Stanley upgraded Southwest Airlines Co (NYSE:LUV) on Thursday, January 7 to “Equal-Weight” rating. The firm has “Outperform” rating given on Friday, September 9 by Imperial Capital.

According to Zacks Investment Research, “Southwest Airlines is a major domestic airline that provides primarily shorthaul, high-frequency, point-to-point, low-fare service. Southwest operates over Boeing 737 aircraft in numerous cities. Southwest has the lowest operating cost structure in the domestic airline industry and consistently offers the lowest and simplest fares. Southwest also has one of the best overall Customer Service records.”

Insitutional Activity: The institutional sentiment decreased to 0.89 in 2016 Q2. Its down 0.09, from 0.98 in 2016Q1. The ratio fall, as 75 funds sold all Southwest Airlines Co shares owned while 260 reduced positions. 66 funds bought stakes while 233 increased positions. They now own 471.95 million shares or 5.42% less from 499.00 million shares in 2016Q1.
First Quadrant L P Ca has 838,500 shares for 0.73% of their US portfolio. Westend Capital Mngmt Ltd, a California-based fund reported 44,693 shares. Phocas holds 0.02% or 7,657 shares in its portfolio. Adams Diversified Equity Fund, a Maryland-based fund reported 204,900 shares. Qs Limited Liability Corp holds 542,934 shares or 0.18% of its portfolio. Brave Asset Mngmt Incorporated, a New Jersey-based fund reported 1,500 shares. First Interstate Retail Bank holds 0.05% of its portfolio in Southwest Airlines Co (NYSE:LUV) for 6,498 shares. Peapack Gladstone Financial reported 5,923 shares or 0% of all its holdings. Mu Invs Company, a Japan-based fund reported 4,000 shares. Prudential Fincl Incorporated reported 3.91 million shares or 0.26% of all its holdings. Wellington Mngmt Limited Liability Partnership accumulated 1.73 million shares or 0.02% of the stock. Leuthold Gru Limited Co owns 236,746 shares or 0.98% of their US portfolio. Cantab Capital Llp has 0% invested in the company for 44,196 shares. Moreover, Ubs Oconnor has 0% invested in Southwest Airlines Co (NYSE:LUV) for 142,500 shares. Blackrock last reported 0.09% of its portfolio in the stock.

Insider Transactions: Since May 26, 2016, the stock had 3 buys, and 3 selling transactions for $450,876 net activity. $204,046 worth of shares were bought by CUNNINGHAM WILLIAM H DR on Wednesday, August 3. 28,106 shares were bought by KELLY GARY C, worth $1.00M on Tuesday, August 2. Another trade for 18,765 shares valued at $784,250 was sold by Lamb Jeff. On Tuesday, June 7 the insider MONTFORD JOHN T sold $52,404. Another trade for 1,776 shares valued at $66,820 was made by Shaw Mark R on Wednesday, July 27. 4,200 shares were bought by Van de Ven Michael G, worth $150,247.

Southwest Airlines Co. operates Southwest Airlines. The company has a market cap of $26.52 billion. Southwest is a passenger airline that provides scheduled air transportation in the United States and near-international markets. It has a 11.89 P/E ratio. The Firm serves approximately 100 destinations in over 40 states, such as the District of Columbia, the Commonwealth of Puerto Rico, and approximately seven near-international countries, including Mexico, Jamaica, The Bahamas, Aruba, Dominican Republic, Costa Rica, and Belize.

LUV Company Profile

Southwest Airlines Co. (Southwest), incorporated on March 9, 1967, operates Southwest Airlines. Southwest is a passenger airline that provides scheduled air transportation in the United States and near-international markets. The Firm serves approximately 100 destinations in over 40 states, such as the District of Columbia, the Commonwealth of Puerto Rico, and approximately seven near-international countries, including Mexico, Jamaica, The Bahamas, Aruba, Dominican Republic, Costa Rica, and Belize. The Firm added its first three destinations in Central America (San Jose, Costa Rica, Belize City, Belize, and Liberia, Costa Rica) and also commenced Southwest service to a fourth destination in Mexico (Puerto Vallarta). Southwest operates a total of approximately 704 Boeing 737 aircraft. The Firm also added approximately 20 domestic nonstop destinations from Dallas Love Field. Southwest offers a total of 180 weekday departures to over 50 nonstop destinations from Dallas Love Field. In addition, the Company added over eight international nonstop destinations from a newly constructed five-gate international terminal at Houston’s William P. Hobby Airport.

More notable recent Southwest Airlines Co (NYSE:LUV) news were published by: Seekingalpha.com which released: “Southwest Airlines: Capacity Discipline Is The Key” on November 08, 2016, also Reuters.com with their article: “Southwest Airlines pilots approve new contract” published on November 07, 2016, Fool.com published: “Why Southwest Airlines Co Stock Was Falling Today” on October 26, 2016. More interesting news about Southwest Airlines Co (NYSE:LUV) were released by: Prnewswire.com and their article: “Southwest Airlines Flight Attendants Approve Tentative Agreement” published on October 31, 2016 as well as Seekingalpha.com‘s news article titled: “Is Southwest Airlines Ready To Fly? (Part 2)” with publication date: November 03, 2016.

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