Caxton Associates LLP Increases Position in Southwest Airlines Co. $LUV

Key Points

• Caxton Associates LLP boosted its Southwest Airlines stake by 169.7% in the first quarter, ending with 89,659 shares valued at about $3.37 million.
• Southwest reported a strong quarterly beat, posting $0.94 EPS versus the $0.52 estimate and revenue of $8.72 billion, with revenue up 16.4% year over year.
• Despite the earnings beat, the stock fell 6.1% as the company gave softer guidance, cutting its full-year outlook to $3.25-$4.25 EPS and forecasting Q3 EPS below consensus amid higher fuel costs.

Caxton Associates LLP increased its stake in shares of Southwest Airlines Co. (NYSE:LUV - Free Report) by 169.7% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 89,659 shares of the airline's stock after buying an additional 56,412 shares during the quarter. Caxton Associates LLP's holdings in Southwest Airlines were worth $3,368,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Gibbs Wealth Management grew its stake in shares of Southwest Airlines by 86.7% in the 1st quarter. Gibbs Wealth Management now owns 29,879 shares of the airline's stock valued at $1,123,000 after purchasing an additional 13,874 shares during the last quarter. Sei Investments Co. lifted its holdings in shares of Southwest Airlines by 105.3% during the first quarter. Sei Investments Co. now owns 592,515 shares of the airline's stock worth $22,261,000 after purchasing an additional 303,922 shares during the period. Cetera Investment Advisers lifted its holdings in shares of Southwest Airlines by 2.0% during the first quarter. Cetera Investment Advisers now owns 175,125 shares of the airline's stock worth $6,579,000 after purchasing an additional 3,366 shares during the period. First Trust Advisors LP grew its position in Southwest Airlines by 29.0% in the 1st quarter. First Trust Advisors LP now owns 651,106 shares of the airline's stock valued at $24,462,000 after buying an additional 146,559 shares during the last quarter. Finally, Bellwether Advisors LLC acquired a new position in Southwest Airlines in the 1st quarter valued at $1,355,000. 80.82% of the stock is owned by hedge funds and other institutional investors.

Southwest Airlines Trading Down 6.1%

Shares of LUV opened at $44.75 on Friday. The firm has a market capitalization of $21.87 billion, a P/E ratio of 27.45, a PEG ratio of 0.45 and a beta of 1.12. The company has a current ratio of 0.48, a quick ratio of 0.41 and a debt-to-equity ratio of 0.66. The firm's 50-day moving average is $45.88 and its two-hundred day moving average is $44.29. 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 data 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 firm had revenue of $8.72 billion during the quarter, compared to analysts' expectations of $8.58 billion. Southwest Airlines had a return on equity of 13.93% and a net margin of 2.78%.Southwest Airlines's revenue was up 16.4% on a year-over-year basis. During the same period in the previous year, the firm posted $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. On average, research analysts predict that Southwest Airlines Co. will post 3.23 earnings per share for the current fiscal year.

Southwest Airlines Announces Dividend

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

Wall Street Analyst Weigh In

A number of equities analysts have commented on the stock. Susquehanna upped their price objective on shares of Southwest Airlines from $44.00 to $55.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 7th. Weiss Ratings upgraded shares of Southwest Airlines from a "hold (c)" rating to a "hold (c+)" rating in a research note on Tuesday. Citigroup increased their price target on shares of Southwest Airlines from $44.00 to $55.00 and gave the stock a "neutral" rating in a report on Friday, June 26th. JPMorgan Chase & Co. reduced their price objective on shares of Southwest Airlines from $58.00 to $56.00 in a research report on Friday, March 27th. Finally, Morgan Stanley lifted their price objective on Southwest Airlines from $60.00 to $65.00 and gave the company an "overweight" rating in a 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 company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $49.58.

Southwest Airlines News Roundup

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 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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