AXQ Capital LP Reduces Stock Position in Southwest Airlines Co. $LUV

Key Points

• AXQ Capital LP cut its Southwest Airlines position by 81.5% in the second quarter, selling 62,688 shares and retaining 14,262 shares valued at approximately $733,000.
• Southwest reported quarterly EPS of $0.94, exceeding the $0.52 consensus estimate, while revenue rose 16.4% year over year to $8.72 billion. The company also declared a quarterly dividend of $0.18 per share, yielding about 1.8% annually.
• Analyst sentiment remains mixed, with nine Buy, nine Hold, and four Sell ratings; the stock carries an overall “Hold” consensus and an average price target of $49.01.

AXQ Capital LP reduced its position in shares of Southwest Airlines Co. (NYSE:LUV - Free Report) by 81.5% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 14,262 shares of the airline's stock after selling 62,688 shares during the period. AXQ Capital LP's holdings in Southwest Airlines were worth $733,000 as of its most recent SEC filing.

Several other large investors also recently modified their holdings of the business. SHP Wealth Management purchased a new position in shares of Southwest Airlines during the fourth quarter valued at approximately $25,000. Entrust Financial LLC purchased a new position in Southwest Airlines during the 4th quarter valued at $26,000. Los Angeles Capital Management LLC purchased a new position in Southwest Airlines during the 4th quarter valued at $26,000. Scarborough Advisors LLC bought a new position in Southwest Airlines in the 1st quarter worth $28,000. Finally, DV Equities LLC bought a new position in Southwest Airlines in the 4th quarter worth $30,000. 80.82% of the stock is owned by institutional investors.

Southwest Airlines Stock Performance

Shares of LUV stock opened at $39.64 on Monday. The company has a market capitalization of $19.39 billion, a price-to-earnings ratio of 24.32, a price-to-earnings-growth ratio of 0.37 and a beta of 1.13. The company has a debt-to-equity ratio of 0.54, a quick ratio of 0.42 and a current ratio of 0.49. Southwest Airlines Co. has a one year low of $29.26 and a one year high of $55.11. The company's 50-day moving average is $45.39 and its 200 day moving average is $43.59.

Southwest Airlines (NYSE:LUV - Get Free Report) last issued its earnings results on Wednesday, July 22nd. The airline reported $0.94 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.52 by $0.42. The business had revenue of $8.72 billion during the quarter, compared to analysts' expectations of $8.58 billion. Southwest Airlines had a net margin of 2.78% and a return on equity of 14.15%. The business's revenue for the quarter was up 16.4% compared to the same quarter last year. During the same period in the previous year, the company earned $0.43 earnings per share. 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. Sell-side analysts expect that Southwest Airlines Co. will post 3.28 EPS for the current fiscal year.

Southwest Airlines Announces Dividend

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

Wall Street Analyst Weigh In

Several research firms have weighed in on LUV. JPMorgan Chase & Co. cut their price objective on Southwest Airlines from $60.00 to $59.00 and set an "overweight" rating on the stock in a research report on Friday, July 24th. Jefferies Financial Group raised their target price on Southwest Airlines from $44.00 to $50.00 and gave the company a "hold" rating in a research note on Wednesday, July 1st. Weiss Ratings upgraded Southwest Airlines from a "hold (c)" rating to a "hold (c+)" rating in a research report on Tuesday, August 18th. Wall Street Zen lowered Southwest Airlines from a "buy" rating to a "hold" rating in a research report on Saturday. Finally, Barclays lifted their price target on shares of Southwest Airlines from $56.00 to $65.00 and gave the company an "overweight" rating in a research report on Thursday, June 25th. 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 stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $49.01.

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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