Aberdeen Group plc Trims Stock Position in Southwest Airlines Co. $LUV

Key Points

• Aberdeen Group plc reduced its stake in Southwest Airlines by 17.1% in Q4, selling 25,226 shares and finishing the period with 122,474 shares valued at about $5.06 million.
• Analyst sentiment is mixed: Barclays upgraded to overweight with a $56 target and Deutsche Bank raised its target to $48, but the consensus remains a Hold with an average price target of $43.72.
• Shares trade around $40.33 with a 52‑week range of $23.82–$55.11 and a PE of 48.01; the company pays a $0.18 quarterly dividend (1.8% yield) and has a payout ratio of 85.7%.

Aberdeen Group plc reduced its stake in shares of Southwest Airlines Co. (NYSE:LUV - Free Report) by 17.1% during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 122,474 shares of the airline's stock after selling 25,226 shares during the quarter. Aberdeen Group plc's holdings in Southwest Airlines were worth $5,062,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently modified their holdings of the business. Benjamin Edwards Inc. boosted its stake in Southwest Airlines by 1.4% during the 2nd quarter. Benjamin Edwards Inc. now owns 24,857 shares of the airline's stock valued at $806,000 after purchasing an additional 333 shares in the last quarter. GAMMA Investing LLC lifted its position in shares of Southwest Airlines by 2.4% during the 3rd quarter. GAMMA Investing LLC now owns 14,285 shares of the airline's stock valued at $456,000 after acquiring an additional 341 shares during the last quarter. Valeo Financial Advisors LLC lifted its holdings in shares of Southwest Airlines by 3.3% in the third quarter. Valeo Financial Advisors LLC now owns 10,791 shares of the airline's stock valued at $344,000 after purchasing an additional 343 shares in the last quarter. Zacks Investment Management lifted its holdings in shares of Southwest Airlines by 0.4% in the third quarter. Zacks Investment Management now owns 83,070 shares of the airline's stock valued at $2,651,000 after purchasing an additional 348 shares in the last quarter. Finally, CI Investments Inc. lifted its holdings in shares of Southwest Airlines by 11.0% in the third quarter. CI Investments Inc. now owns 3,545 shares of the airline's stock valued at $113,000 after purchasing an additional 350 shares in the last quarter. Institutional investors own 80.82% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on LUV shares. Barclays upgraded Southwest Airlines from an "equal weight" rating to an "overweight" rating and increased their target price for the company from $34.00 to $56.00 in a report on Tuesday, December 16th. Deutsche Bank Aktiengesellschaft raised their target price on Southwest Airlines from $40.00 to $48.00 and gave the company a "buy" rating in a report on Friday, December 12th. Zacks Research downgraded Southwest Airlines from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, March 11th. Wells Fargo & Company lowered their price target on Southwest Airlines from $50.00 to $44.00 and set an "equal weight" rating on the stock in a research report on Monday, March 16th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Southwest Airlines in a research note on Friday, March 27th. Eight investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat, Southwest Airlines presently has an average rating of "Hold" and an average price target of $43.72.

Southwest Airlines Price Performance

LUV opened at $40.33 on Thursday. The company has a fifty day moving average price of $45.36 and a two-hundred day moving average price of $39.58. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.45 and a current ratio of 0.52. Southwest Airlines Co. has a 52 week low of $23.82 and a 52 week high of $55.11. The firm has a market capitalization of $19.80 billion, a PE ratio of 48.01, a P/E/G ratio of 0.30 and a beta of 1.19.

Southwest Airlines (NYSE:LUV - Get Free Report) last released its earnings results on Wednesday, January 28th. The airline reported $0.58 EPS for the quarter, topping analysts' consensus estimates of $0.56 by $0.02. Southwest Airlines had a net margin of 1.57% and a return on equity of 6.18%. The firm had revenue of $7.44 billion during the quarter, compared to analyst estimates of $7.51 billion. During the same quarter in the previous year, the business earned $0.56 EPS. The business's quarterly revenue was up 7.4% compared to the same quarter last year. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. As a group, analysts anticipate that Southwest Airlines Co. will post 1.55 earnings per share for the current year.

Southwest Airlines Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, April 2nd. Investors of record on Thursday, March 12th were given a $0.18 dividend. This represents a $0.72 annualized dividend and a yield of 1.8%. The ex-dividend date of this dividend was Thursday, March 12th. Southwest Airlines's payout ratio is currently 85.71%.

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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