Commonwealth Equity Services LLC reduced its stake in Southwest Airlines Co. (NYSE:LUV – Free Report) by 13.4% during the fourth quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 98,945 shares of the airline’s stock after selling 15,322 shares during the quarter. Commonwealth Equity Services LLC’s holdings in Southwest Airlines were worth $4,089,000 at the end of the most recent quarter.
A number of other large investors have also recently made changes to their positions in the stock. EntryPoint Capital LLC purchased a new position in shares of Southwest Airlines during the 4th quarter valued at about $339,000. Federated Hermes Inc. lifted its position in shares of Southwest Airlines by 263.2% during the 4th quarter. Federated Hermes Inc. now owns 1,023,730 shares of the airline’s stock valued at $42,311,000 after buying an additional 741,839 shares in the last quarter. IFC & Insurance Marketing Inc. purchased a new position in shares of Southwest Airlines during the 4th quarter valued at about $47,000. M&G PLC boosted its position in shares of Southwest Airlines by 10.8% in the fourth quarter. M&G PLC now owns 505,212 shares of the airline’s stock worth $20,714,000 after purchasing an additional 49,328 shares during the period. Finally, Campbell & CO Investment Adviser LLC bought a new position in shares of Southwest Airlines in the fourth quarter worth approximately $9,870,000. 80.82% of the stock is owned by hedge funds and other institutional investors.
Analyst Ratings Changes
A number of research firms have weighed in on LUV. HSBC upgraded shares of Southwest Airlines from a “reduce” rating to a “hold” rating and upped their price target for the stock from $24.40 to $36.10 in a research report on Friday, April 24th. Argus cut their price target on Southwest Airlines from $55.00 to $45.00 and set a “buy” rating for the company in a research note on Friday, April 24th. Citigroup cut their price target on Southwest Airlines from $54.00 to $44.00 and set a “neutral” rating for the company in a research note on Friday, March 20th. UBS Group increased their price target on Southwest Airlines from $49.00 to $53.00 and gave the stock a “buy” rating in a research note on Tuesday, May 26th. Finally, TD Cowen increased their price target on Southwest Airlines from $46.00 to $47.00 and gave the stock a “buy” rating in a research note on Monday, April 27th. Nine analysts have rated the stock with a Buy rating, eight have issued a Hold rating and five have given a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $44.21.
Southwest Airlines Price Performance
LUV stock opened at $41.61 on Monday. Southwest Airlines Co. has a one year low of $28.98 and a one year high of $55.11. The company’s fifty day moving average price is $39.93 and its 200-day moving average price is $41.91. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.41 and a current ratio of 0.48. The company has a market capitalization of $20.34 billion, a PE ratio of 26.84, a price-to-earnings-growth ratio of 0.45 and a beta of 1.15.
Southwest Airlines (NYSE:LUV – Get Free Report) last released its earnings results on Wednesday, April 22nd. The airline reported $0.45 EPS for the quarter, hitting the consensus estimate of $0.45. Southwest Airlines had a net margin of 2.83% and a return on equity of 10.66%. The firm had revenue of $7.25 billion for the quarter, compared to the consensus estimate of $8.46 billion. During the same quarter in the previous year, the firm earned ($0.13) earnings per share. The company’s quarterly revenue was up 12.8% compared to the same quarter last year. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. On average, equities analysts anticipate that Southwest Airlines Co. will post 2.81 EPS for the current fiscal year.
Southwest Airlines Dividend Announcement
The business also recently disclosed a quarterly dividend, which will be paid on Thursday, July 2nd. Shareholders of record on Thursday, June 11th will be issued a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a dividend yield of 1.7%. The ex-dividend date of this dividend is Thursday, June 11th. Southwest Airlines’s dividend payout ratio is 46.45%.
About Southwest Airlines
Southwest Airlines Co is a U.S.-based low-cost carrier that operates a point-to-point domestic and near-international airline network. Headquartered in Dallas, Texas, the company primarily flies Boeing 737 aircraft and offers no-frills, single-class service designed to keep fares competitive. Southwest’s operating model emphasizes high aircraft utilization, quick turnaround times and an open seating policy, allowing customers to board and select seats on a first-come, first-served basis.
Founded in 1967 by Herb Kelleher and Rollin King as Air Southwest Company, Southwest began commercial service in 1971, initially connecting Dallas, Houston and San Antonio.
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