Catalyst Capital Advisors LLC Takes Position in Southwest Airlines Co. $LUV

Key Points

• Catalyst Capital Advisors opened a new position in Southwest Airlines, buying 49,600 shares worth about $1.86 million in the first quarter.
• Institutional ownership remains high, with several large investors adding to their stakes and about 80.82% of Southwest’s stock held by institutions.
• Southwest reported Q1 EPS of $0.45, matching expectations, but revenue came in below estimates at $7.25 billion; analysts currently have an average Hold rating with a target price of $49.58.

Catalyst Capital Advisors LLC acquired a new position in shares of Southwest Airlines Co. (NYSE:LUV - Free Report) in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 49,600 shares of the airline's stock, valued at approximately $1,863,000.

Other institutional investors and hedge funds have also bought and sold shares of the company. 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 during the last quarter. Invesco Ltd. lifted its holdings in Southwest Airlines by 9.2% during the third quarter. Invesco Ltd. now owns 6,837,197 shares of the airline's stock valued at $218,175,000 after purchasing an additional 577,326 shares during the last quarter. Morgan Stanley boosted its position in 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 during the period. Norges Bank purchased a new position in shares of Southwest Airlines in the fourth quarter worth about $172,038,000. Finally, Bank of New York Mellon Corp increased its stake in shares of Southwest Airlines by 4.7% in the first quarter. Bank of New York Mellon Corp now owns 3,924,407 shares of the airline's stock worth $147,440,000 after purchasing an additional 176,742 shares in the last quarter. 80.82% of the stock is owned by institutional investors.

Southwest Airlines Price Performance

Shares of NYSE LUV opened at $48.09 on Friday. The firm has a market capitalization of $23.50 billion, a P/E ratio of 31.02, a P/E/G ratio of 0.47 and a beta of 1.12. The company has a quick ratio of 0.41, a current ratio of 0.48 and a debt-to-equity ratio of 0.66. The stock's 50-day simple moving average is $45.26 and its two-hundred day simple moving average is $44.09. Southwest Airlines Co. has a twelve month low of $28.98 and a twelve month high of $55.11.

Southwest Airlines (NYSE:LUV - Get Free Report) last issued its quarterly earnings results on Wednesday, April 22nd. The airline reported $0.45 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.45. The firm had revenue of $7.25 billion during the quarter, compared to the consensus estimate of $8.46 billion. Southwest Airlines had a return on equity of 10.66% and a net margin of 2.83%.The company's revenue for the quarter was up 12.8% on a year-over-year basis. During the same quarter last year, the company posted ($0.13) EPS. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. As a group, equities analysts anticipate that Southwest Airlines Co. will post 3.23 EPS for the current fiscal year.

Southwest Airlines Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, July 2nd. Investors of record on Thursday, June 11th were given a $0.18 dividend. The ex-dividend date was Thursday, June 11th. This represents a $0.72 annualized dividend and a yield of 1.5%. Southwest Airlines's payout ratio is 46.45%.

Analyst Ratings Changes

Several research analysts recently commented on LUV shares. Morgan Stanley raised their price objective 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. Barclays raised their price target on Southwest Airlines from $56.00 to $65.00 and gave the stock an "overweight" rating in a report on Thursday, June 25th. Weiss Ratings lowered Southwest Airlines from a "hold (c+)" rating to a "hold (c)" rating in a research note on Monday, June 8th. Wall Street Zen upgraded Southwest Airlines from a "hold" rating to a "buy" rating in a research note on Sunday, July 5th. Finally, Citigroup upped their price target on Southwest Airlines from $44.00 to $55.00 and gave the company a "neutral" rating in a research report on Friday, June 26th. Nine investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $49.58.

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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