Redwood Investment Management LLC bought a new position in shares of Southwest Airlines Co. (NYSE:LUV – Free Report) during the 2nd quarter, HoldingsChannel reports. The firm bought 43,571 shares of the airline’s stock, valued at approximately $2,240,000.
Other hedge funds also recently added to or reduced their stakes in the company. Primecap Management Co. CA purchased a new stake in Southwest Airlines in the second quarter valued at about $2,509,179,000. BlackRock Inc. acquired a new stake in Southwest Airlines in the second quarter worth about $1,538,382,000. Bank of New York Mellon Corp purchased a new stake in shares of Southwest Airlines during the second quarter worth about $234,872,000. Norges Bank acquired a new position in shares of Southwest Airlines during the fourth quarter valued at about $172,038,000. Finally, Franklin Resources Inc. increased its holdings in shares of Southwest Airlines by 7.0% during the fourth quarter. Franklin Resources Inc. now owns 40,200,530 shares of the airline’s stock valued at $1,661,488,000 after acquiring an additional 2,626,853 shares in the last quarter. 80.82% of the stock is owned by institutional investors and hedge funds.
Analyst Upgrades and Downgrades
A number of research firms recently commented on LUV. Evercore lifted their target price on shares of Southwest Airlines from $44.00 to $52.00 in a research note on Thursday, June 25th. Susquehanna upped their price target on shares of Southwest Airlines from $44.00 to $55.00 and gave the company a “neutral” rating in a research note on Tuesday, July 7th. TD Cowen decreased their price target on shares of Southwest Airlines from $53.00 to $48.00 and set a “buy” rating for the company in a report on Monday. Wall Street Zen upgraded shares of Southwest Airlines from a “hold” rating to a “buy” rating in a research note on Sunday, July 5th. Finally, Bank of America boosted their price objective on shares of Southwest Airlines from $40.00 to $45.00 and gave the company an “underperform” rating in a report on Wednesday, July 1st. Nine research analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat, Southwest Airlines currently has a consensus rating of “Hold” and an average price target of $49.01.
Southwest Airlines Trading Down 0.3%
NYSE LUV opened at $40.70 on Thursday. The company has a market capitalization of $19.91 billion, a PE ratio of 24.97, a P/E/G ratio of 0.37 and a beta of 1.14. The company has a fifty day moving average of $46.92 and a 200 day moving average of $44.25. Southwest Airlines Co. has a 1 year low of $29.26 and a 1 year high of $55.11. The company has a debt-to-equity ratio of 0.54, a current ratio of 0.49 and a quick ratio of 0.42.
Southwest Airlines (NYSE:LUV – Get Free Report) last announced its quarterly earnings results on Wednesday, July 22nd. The airline reported $0.94 earnings per share for the quarter, beating the consensus estimate of $0.52 by $0.42. Southwest Airlines had a return on equity of 14.15% and a net margin of 2.78%.The company had revenue of $8.72 billion during the quarter, compared to analysts’ expectations of $8.58 billion. During the same period last year, the business earned $0.43 earnings per share. Southwest Airlines’s quarterly revenue was up 16.4% on a year-over-year basis. Southwest Airlines has set its FY 2026 guidance at 3.250-4.250 EPS and its Q3 2026 guidance at 0.500-0.750 EPS. Research analysts forecast that Southwest Airlines Co. will post 3.32 earnings per share for the current year.
Southwest Airlines Dividend Announcement
The company also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, September 3rd will be paid a $0.18 dividend. This represents a $0.72 annualized dividend and a dividend yield of 1.8%. The ex-dividend date is Thursday, September 3rd. Southwest Airlines’s payout ratio is currently 44.17%.
Southwest Airlines Company Profile
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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