Southwest Airlines Co. (NYSE: LUV) shares rose on Tuesday Nov 22 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock, raising the price target of stock.
Meanwhile, The Dow Jones Industrial Average opened opened higher, trading above 19,000 for the first time ever, while the S&P 500 traded above 2,200 shortly after the opening bell on Tuesday.
The S&P 500 SPX, +0.17% opened 5 points, or 0.2%, higher at 2,202. The Dow Jones Industrial Average DJIA, +0.20% added 45 points, or 0.2%, to 19,002. The Nasdaq Composite COMP, +0.25% began the session up 16 points, or 0.3%, at 5,385.
Southwest Airlines Co. (NYSE: LUV) had its price target boosted by equities researchers at Imperial Capital from $46.00 to $57.00. Imperial Capital currently has a rating of Outperform on the shares. The one-year price target of $49.04 is above the opening price of $47.69, resulting a number of other analysts to issue statements on the stock recently. Looking back over the last 52 weeks, Southwest Airlines Co. stock has a high of $51.34.
Shares of Southwest Airlines Co. (NYSE: LUV) opened at $47.69 on Tuesday and has traded in a range between, $47.67 and $47.99, and last traded at $47.86, an increase of $0.50 or 1.06% over the previous closing price.
Southwest Airlines Co. (NYSE: LUV) now has a market cap of 29.46B.
Southwest Airlines Co. (NYSE: LUV) Average Daily Trading Volume
The stock’s average daily volume is 7,752,910 shares out of a total float 614,397,000 and some 693,384 shares traded hands yesterday, below the norm. Trading volume is likely to increase in the next few days as swing traders often use upticks in trading volume to pinpoint large volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to affirm a trend. As such, market traders will continue to watch for institutional sponsorship as an indicator that financial institutions are moving forward.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain teams of analysts that research thousands of stocks, so it is good corroboration to see them taking a postion in a stock you’re researching.
Southwest Airlines Co. (NYSE: LUV) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
Traders are able to make make more effective choices on trades when they track the activity of professional investors.
With that in mind, Southwest Airlines Co. (NYSE: LUV) now has a 50-day MA of $41.67 and 200-day MA of $39.90. It has traded in a 52-week range between $33.96 – 51.34 and today’s last price is 6.78%% lower than the 52 week high of $51.34.
Earnings growth is a critical factor to research when investing in stocks and investors seek companies that have increased their earnings at least 25% or more for 3 consecutive years.
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