On October 1, 2024, Rakesh Gangwal, a Director at Southwest Airlines Co (LUV, Financial), purchased 165,553 shares of the company, as reported in a recent SEC Filing. Following this transaction, the insider now owns a total of 2,304,410 shares of Southwest Airlines Co.
Southwest Airlines Co, a major airline in the United States, operates a passenger airline that provides scheduled air transportation in the United States and near-international markets. As of the latest transaction, the company's market cap stands at approximately $17.72 billion.
The shares were acquired at a price of $29.15 each. This pricing places the company's price-earnings ratio at 227.46, significantly above both the industry median of 14.61 and the historical median for the company.
According to GF Value, the intrinsic value of the stock is estimated at $39.27, suggesting that Southwest Airlines Co is modestly undervalued with a price-to-GF-Value ratio of 0.74.
Over the past year, the insider has been actively increasing their stake in the company, purchasing a total of 3,600,000 shares. This recent acquisition is part of a broader trend observed within the company, where there have been 7 insider buys and no insider sells over the past year.
This insider buying activity could be a signal to investors about the perceived value of the stock at current prices, especially when considered alongside the company's valuation metrics and GF Value assessment.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
