Canada Pension Plan Investment Board Takes Position in Southwest Airlines Co. $LUV

Key Points

• Canada Pension Plan Investment Board acquired 215,300 Southwest Airlines shares worth approximately $11.1 million, while institutional investors collectively own 80.82% of the company.
• Analyst sentiment remains mixed, with nine Buy, nine Hold and four Sell ratings, resulting in a consensus “Hold” rating and an average price target of $49.01.
• Southwest reported quarterly EPS of $0.94, exceeding the $0.52 consensus estimate, and revenue of $8.72 billion. The company also declared a quarterly dividend of $0.18 per share, representing a 1.8% annualized yield.

Canada Pension Plan Investment Board bought a new position in shares of Southwest Airlines Co. (NYSE:LUV - Free Report) in the 2nd quarter, according to its most recent disclosure with the SEC. The institutional investor bought 215,300 shares of the airline's stock, valued at approximately $11,071,000.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in LUV. Franklin Resources Inc. increased its holdings in Southwest Airlines by 7.0% in the 4th quarter. Franklin Resources Inc. now owns 40,200,530 shares of the airline's stock worth $1,661,488,000 after acquiring an additional 2,626,853 shares in the last quarter. BlackRock Inc. acquired a new stake in shares of Southwest Airlines in the second quarter valued at about $1,538,382,000. Invesco Ltd. increased its stake in shares of Southwest Airlines by 9.2% during the third quarter. Invesco Ltd. now owns 6,837,197 shares of the airline's stock worth $218,175,000 after purchasing an additional 577,326 shares in the last quarter. Morgan Stanley increased its stake in shares of Southwest Airlines by 4.1% during the fourth quarter. Morgan Stanley now owns 6,228,475 shares of the airline's stock worth $257,423,000 after purchasing an additional 244,891 shares in the last quarter. Finally, Dimensional Fund Advisors LP raised its position in shares of Southwest Airlines by 2.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 5,763,154 shares of the airline's stock worth $216,472,000 after purchasing an additional 117,833 shares during the last quarter. Hedge funds and other institutional investors own 80.82% of the company's stock.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on LUV shares. Morgan Stanley lifted their price objective on Southwest Airlines from $60.00 to $65.00 and gave the stock an "overweight" rating in a report on Monday, July 6th. Raymond James Financial reduced their target price on Southwest Airlines from $60.00 to $54.00 and set an "outperform" rating for the company in a report on Monday, August 24th. Zacks Research upgraded Southwest Airlines from a "strong sell" rating to a "hold" rating in a research report on Thursday, June 25th. The Goldman Sachs Group lifted their price target on Southwest Airlines from $30.00 to $35.00 and gave the stock a "sell" rating in a research note on Thursday, July 2nd. Finally, Bank of America boosted their price target on Southwest Airlines from $40.00 to $45.00 and gave the stock an "underperform" rating in a research report on Wednesday, July 1st. Nine investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat.com, Southwest Airlines presently has a consensus rating of "Hold" and an average price target of $49.01.

Southwest Airlines Stock Down 0.2%

Shares of NYSE LUV opened at $39.70 on Friday. The stock has a market cap of $19.42 billion, a PE ratio of 24.36, a P/E/G ratio of 0.36 and a beta of 1.14. 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 company has a 50-day moving average of $46.59 and a 200 day moving average of $44.12.

Southwest Airlines (NYSE:LUV - Get Free Report) last released its earnings results on Wednesday, July 22nd. The airline reported $0.94 earnings per share for the quarter, topping analysts' consensus estimates of $0.52 by $0.42. The business had revenue of $8.72 billion for the quarter, compared to analyst estimates 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 was up 16.4% on a year-over-year basis. During the same period last year, the company posted $0.43 EPS. 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. As a group, sell-side analysts predict that Southwest Airlines Co. will post 3.32 EPS for the current fiscal year.

Southwest Airlines Dividend Announcement

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