Linda B. Rutherford, Chief Administration Officer at Southwest Airlines Co. (NYSE:LUV), recently executed a sale of company shares, according to a filing with the Securities and Exchange Commission. On December 6, Rutherford sold 3,849 shares of Southwest Airlines common stock at an average price of $34.395 per share, totaling approximately $132,386. The sale comes amid a strong performance period for the airline, with the stock showing a 20.7% return over the past six months. According to InvestingPro data, Southwest Airlines maintains a market capitalization of approximately $20 billion. Following this transaction, Rutherford directly owns 89,376 shares of the company. Additionally, she holds 1,661 shares indirectly through the company's Retirement Savings Plan. InvestingPro analysis suggests the stock is currently trading slightly below its Fair Value, with additional ProTips and comprehensive metrics available through the Pro Research Report, which provides deep-dive analysis of Southwest Airlines among 1,400+ top US stocks.
In other recent news, Southwest Airlines has seen an upward revision in its Q4 revenue outlook, expecting a 5.5% to 7.0% increase in revenue per available seat mile. This positive forecast is supported by six analysts who recently revised their earnings upwards for the upcoming period. Despite this, Goldman Sachs (NYSE:GS) has reiterated its Sell rating for the company's stock, citing potential risks to future earnings.
On the other hand, Morgan Stanley (NYSE:MS) has resumed coverage on Southwest, assigning the stock an Overweight rating and setting a price target of $42.00. The firm anticipates a series of revenue and cost initiatives to restore normalized earnings power back in the $3-4 range by 2027.
Meanwhile, the global airline industry is expected to see significant financial improvements due to a 20% drop in Brent crude oil prices over the last year, according to a recent IATA report. This decrease is expected to reduce fuel costs for airlines, which make up 30% of total expenses.
The airline industry has also seen robust passenger traffic and a surge in air cargo demand, contributing to a projected net profit of $36.6 billion in 2025. However, supply chain issues are anticipated to continue, potentially impacting the industry's growth.
In other developments, Southwest Airlines has appointed Rakesh Gangwal as the independent Chair of the Board of Directors and has announced plans to initiate a new $750 million accelerated share repurchase program in Q1 2025. These are the recent developments for Southwest Airlines.
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