The security is reeling from this weekend’s delays and cencelations
Southwest Airlines Co (NYSE:LUV) is getting caught up in this weekend’s winter storm drama, with reports coming out that the company is expected to see the biggest decline in available seat miles out of any of the major U.S. airlines due to thousands of flight cancelations during the holiday weekend. While most other travel sectors are brushing off the spate of delays, shares of Southwest are sinking, last seen down 4.1% at $34.63, after the Transportation Department expressed concern over the flight name’s “disproportionate” number of delays and cancelations.
Earlier this month, we pointed out the 20-day moving average as a possible point of contention on the charts. Since then, the security has slipped even further away from this former support level, with additional pressure forming at the 10-day moving average. It briefly looked like the $35 mark might contain some of the stock’s downside, though this level has also been breached during during today’s trading.
Despite a more than 15% year-to-date deficit, analysts remain bullish on LUV, which could invite some downward rating and price adjustments. Of the 16 in coverage, all but five call the stock a “strong buy.” Plus, the 12-month consensus price target of $49.31 is a 36.6% premium to Friday’s close.