Southwest Airlines Company (NYSE: LUV) shares rose in value in early trading today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. stocks edged lower Monday, with major indexes retreating from record levels.
The Dow Jones Industrial Average DJIA, -0.31% fell 48 points, or 0.2%, to 19,916, while the S&P 500 index SPX, -0.29% lost 5 points to 2,272, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.03% rose 4 points to 5,529, a gain of about 0.1%.
Analysts at Vetr Inc. upgraded shares of Southwest Airlines Company (NYSE: LUV) from Buy to Strong-Buy today. Vetr Inc. currently has a rating of Strong-Buy on the shares. The one-year price target of $57.23 is higher than the opening price of $50.00, resulting a number of other analysts to comment on the stock in recent days. Looking back over the last year, Southwest Airlines Company stock has a high of $52.12. Stock prices often trend to the upside on recommendations and new price targets of professional brokerage firms.
Shares of Southwest Airlines Company (NYSE: LUV) opened at $50.00 yesterday trading between $49.80 and $50.31, and last traded at $50.02, an increase of $0.09 from the previous closing price.
Southwest Airlines Company (NYSE: LUV) currently has a market cap of 30.79B.
Southwest Airlines Company (NYSE: LUV) Average Daily Trading Volume
The stock’s average daily volume is 7,270,230 shares out of a total float 614,415,000 and some 430,343 shares traded hands yesterday, 89 percent lower than the norm. lower than normal. Look for trading volume to pick up in the coming days as investors often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have teams of analysts that investigate thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Southwest Airlines Company (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.
By spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.
Trades for Southwest Airlines Company (NYSE: LUV) have ranged from $33.96 – 52.1200, and the stock now has a 50-day MA of $49.10 and 200-day MA of $41.51. Today’s last price is 4.02%% below the 52 week high of $52.12.
Earnings growth is a crucial factor to look at when buying stocks and investors seek companies that have been successful at growing their earnings by at least 25% over a 3 year period.
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