Allspring Global Investments Holdings LLC Acquires 156,029 Shares of Southwest Airlines Co. $LUV

Key Points

• Allspring Global Investments sharply increased its Southwest Airlines stake in Q1, buying 156,029 shares and lifting its holdings by 662.4% to 179,583 shares valued at about $6.9 million.
• Southwest’s latest earnings beat expectations, with Q2 adjusted EPS of $0.94 versus the $0.52 estimate and revenue of $8.72 billion topping forecasts, supported by record quarterly revenue and stronger fares.
• Despite the strong quarter, the outlook was weaker: Southwest cut its full-year EPS guidance to $3.25-$4.25 and guided Q3 EPS to $0.50-$0.75, with higher fuel costs cited as a major pressure on margins.

Allspring Global Investments Holdings LLC boosted its holdings in Southwest Airlines Co. (NYSE:LUV - Free Report) by 662.4% during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 179,583 shares of the airline's stock after buying an additional 156,029 shares during the quarter. Allspring Global Investments Holdings LLC's holdings in Southwest Airlines were worth $6,865,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. SHP Wealth Management bought a new position in Southwest Airlines in the 4th quarter valued at approximately $25,000. GHP Investment Advisors Inc. bought a new stake in shares of Southwest Airlines during the fourth quarter worth $26,000. Entrust Financial LLC acquired a new position in shares of Southwest Airlines during the fourth quarter worth $26,000. Los Angeles Capital Management LLC acquired a new position in shares of Southwest Airlines during the fourth quarter worth $26,000. Finally, Optima Capital LLC bought a new position in shares of Southwest Airlines in the 4th quarter valued at $27,000. Institutional investors own 80.82% of the company's stock.

Key Southwest Airlines News

Here are the key news stories impacting Southwest Airlines this week:

• Positive Sentiment: Southwest posted Q2 adjusted EPS of $0.94, well above Wall Street’s $0.52 estimate, and revenue of $8.72 billion also topped expectations, helped by record quarterly revenues, stronger fares, and margin expansion. Southwest Airlines Co (LUV) Q2 2026 Earnings Call Highlights: Record Revenues and Strong ...
• Positive Sentiment: Analysts received another boost from a Zacks Rank #2 (Buy) upgrade, reflecting improved earnings expectations and near-term optimism for the stock. Southwest (LUV) Upgraded to Buy: What Does It Mean for the Stock?
• Neutral Sentiment: The company highlighted operational resilience and strong customer demand in its earnings call transcript, but the details were largely consistent with the headline results already reported. Southwest Airlines Co. (LUV) Q2 2026 Earnings Call Transcript
• Negative Sentiment: Guidance disappointed: Southwest forecast Q3 EPS of $0.50 to $0.75, below the analyst consensus near $0.72, and trimmed its full-year outlook to $3.25 to $4.25 as fuel costs climbed sharply. Southwest Airlines Stock Slides as Q3 Guidance Comes in Light
• Negative Sentiment: Multiple reports emphasized that elevated fuel expenses, including roughly an $889 million increase, are pressuring margins and weighing on investor sentiment despite the earnings beat. Southwest Airlines put Texas jet fuel on a boat to LA for the first time amid supply worries

Southwest Airlines Stock Performance

NYSE:LUV opened at $44.75 on Friday. The company has a market capitalization of $21.87 billion, a PE ratio of 27.45, a P/E/G ratio of 0.45 and a beta of 1.12. The company has a 50 day simple moving average of $45.88 and a two-hundred day simple moving average of $44.29. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.41 and a current ratio of 0.48. Southwest Airlines Co. has a fifty-two week low of $28.98 and a fifty-two week high of $55.11.

Southwest Airlines (NYSE:LUV - Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The airline reported $0.94 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.52 by $0.42. Southwest Airlines had a net margin of 2.78% and a return on equity of 13.93%. The firm had revenue of $8.72 billion for the quarter, compared to the consensus estimate of $8.58 billion. During the same quarter in the previous year, the company earned $0.43 EPS. The company's revenue for the quarter 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 anticipate that Southwest Airlines Co. will post 3.23 earnings per share for the current year.

Southwest Airlines Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, July 2nd. Investors of record on Thursday, June 11th were issued a $0.18 dividend. The ex-dividend date was Thursday, June 11th. This represents a $0.72 annualized dividend and a yield of 1.6%. Southwest Airlines's payout ratio is presently 46.45%.

Wall Street Analyst Weigh In

Several research firms have commented on LUV. TD Cowen increased their target price on Southwest Airlines from $47.00 to $53.00 and gave the company a "buy" rating in a research report on Thursday, July 2nd. BMO Capital Markets upped their price objective on Southwest Airlines from $45.00 to $58.50 and gave the company an "outperform" rating in a research note on Thursday, July 2nd. Wells Fargo & Company raised their price objective on shares of Southwest Airlines from $44.00 to $50.00 and gave the company an "equal weight" rating in a report on Tuesday, June 30th. BNP Paribas Exane boosted their target price on shares of Southwest Airlines from $24.00 to $33.00 and gave the stock an "underperform" rating in a report on Tuesday, April 21st. Finally, Morgan Stanley upped their price target on shares of Southwest Airlines from $60.00 to $65.00 and gave the company an "overweight" rating in a research report on Monday, July 6th. Nine analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average price target of $49.58.

Southwest Airlines 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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