33,369 Shares in Southwest Airlines Co. $LUV Bought by Northwestern Mutual Wealth Management Co.

Key Points

• Northwestern Mutual Wealth Management purchased 33,369 Southwest Airlines shares worth approximately $1.7 million, while institutional investors collectively own 80.82% of LUV stock.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $49.01; price targets in recent reports ranged from $45 to $65.
• Southwest exceeded quarterly earnings expectations, reporting $0.94 in EPS and $8.72 billion in revenue, while declaring a quarterly dividend of $0.18 per share, equivalent to a 1.8% yield.

Northwestern Mutual Wealth Management Co. purchased a new position in Southwest Airlines Co. (NYSE:LUV - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 33,369 shares of the airline's stock, valued at approximately $1,716,000.

Other institutional investors have also added to or reduced their stakes in the company. Franklin Resources Inc. lifted its position in Southwest Airlines by 7.0% in the fourth quarter. Franklin Resources Inc. now owns 40,200,530 shares of the airline's stock valued at $1,661,488,000 after purchasing an additional 2,626,853 shares during the last quarter. BlackRock Inc. bought a new position in shares of Southwest Airlines in the second quarter worth approximately $1,538,382,000. Invesco Ltd. increased its stake in shares of Southwest Airlines by 9.2% in the third quarter. Invesco Ltd. now owns 6,837,197 shares of the airline's stock worth $218,175,000 after buying an additional 577,326 shares during the period. Morgan Stanley increased its stake in shares of Southwest Airlines by 4.1% in the fourth quarter. Morgan Stanley now owns 6,228,475 shares of the airline's stock worth $257,423,000 after buying an additional 244,891 shares during the period. Finally, Dimensional Fund Advisors LP raised its holdings in Southwest Airlines by 2.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 5,763,154 shares of the airline's stock valued at $216,472,000 after buying an additional 117,833 shares during the last quarter. 80.82% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the stock. Morgan Stanley raised their price target on shares of Southwest Airlines from $60.00 to $65.00 and gave the stock an "overweight" rating in a report on Monday, July 6th. Zacks Research raised shares of Southwest Airlines from a "strong sell" rating to a "hold" rating in a research note on Thursday, June 25th. Bank of America increased their target price on shares of Southwest Airlines from $40.00 to $45.00 and gave the stock an "underperform" rating in a report on Wednesday, July 1st. JPMorgan Chase & Co. reduced their price target on Southwest Airlines from $60.00 to $59.00 and set an "overweight" rating on the stock in a report on Friday, July 24th. Finally, Wells Fargo & Company boosted their price target on Southwest Airlines from $44.00 to $50.00 and gave the company an "equal weight" rating in a report on Tuesday, June 30th. Nine investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $49.01.

Southwest Airlines Stock Up 0.8%

Shares of NYSE LUV opened at $40.71 on Tuesday. The company has a current ratio of 0.49, a quick ratio of 0.42 and a debt-to-equity ratio of 0.54. Southwest Airlines Co. has a 12 month low of $29.26 and a 12 month high of $55.11. The firm has a market capitalization of $19.92 billion, a PE ratio of 24.98, a price-to-earnings-growth ratio of 0.36 and a beta of 1.14. The firm has a fifty day simple moving average of $47.17 and a two-hundred day simple moving average of $44.42.

Southwest Airlines (NYSE:LUV - Get Free Report) last announced its earnings results on Wednesday, July 22nd. The airline reported $0.94 earnings per share for the quarter, beating analysts' consensus estimates of $0.52 by $0.42. Southwest Airlines had a net margin of 2.78% and a return on equity of 14.15%. The firm had revenue of $8.72 billion for the quarter, compared to analyst estimates of $8.58 billion. During the same quarter in the previous year, the firm posted $0.43 EPS. The company's revenue for the quarter was up 16.4% compared to the same quarter last year. 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. Equities analysts expect that Southwest Airlines Co. will post 3.41 earnings per share for the current year.

Southwest Airlines Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Shareholders of record on Thursday, September 3rd will be given a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 1.8%. The ex-dividend date of this dividend is Thursday, September 3rd. Southwest Airlines's payout ratio is presently 44.17%.

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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