Dimensional Fund Advisors LP Acquires 117,833 Shares of Southwest Airlines Co. $LUV

Key Points

• Dimensional Fund Advisors LP increased its Southwest Airlines stake by 2.1% in the first quarter, buying 117,833 shares and bringing its holdings to 5,763,154 shares worth about $216.5 million.
• Southwest delivered a strong Q2 earnings beat, reporting adjusted EPS of $0.94 versus the $0.52 estimate and revenue of $8.72 billion, both supported by record quarterly revenue and better fares.
• Despite the earnings beat, guidance disappointed: Southwest lowered its full-year outlook to $3.25 to $4.25 EPS and forecast Q3 EPS of $0.50 to $0.75, with higher fuel costs pressuring margins.

Dimensional Fund Advisors LP grew its holdings in shares of Southwest Airlines Co. (NYSE:LUV - Free Report) by 2.1% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 5,763,154 shares of the airline's stock after purchasing an additional 117,833 shares during the period. Dimensional Fund Advisors LP owned about 1.18% of Southwest Airlines worth $216,472,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently made changes to their positions in LUV. SHP Wealth Management acquired a new stake in Southwest Airlines during the fourth quarter worth approximately $25,000. GHP Investment Advisors Inc. acquired a new position in Southwest Airlines in the 4th quarter valued at $26,000. Entrust Financial LLC bought a new stake in shares of Southwest Airlines during the 4th quarter valued at $26,000. Los Angeles Capital Management LLC bought a new stake in shares of Southwest Airlines during the 4th quarter valued at $26,000. Finally, Optima Capital LLC acquired a new stake in shares of Southwest Airlines during the 4th quarter worth $27,000. 80.82% of the stock is currently owned by institutional investors and hedge funds.

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 Price Performance

LUV stock opened at $44.75 on Friday. The company has a fifty day moving average price of $45.88 and a 200-day moving average price of $44.29. The company 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. Southwest Airlines Co. has a 52-week low of $28.98 and a 52-week high of $55.11. 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 (NYSE:LUV - Get Free Report) last issued its quarterly earnings data on Wednesday, July 22nd. The airline reported $0.94 earnings per share for the quarter, topping the consensus estimate of $0.52 by $0.42. The company had revenue of $8.72 billion for 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 13.93%. Southwest Airlines's revenue for the quarter was up 16.4% on a year-over-year basis. During the same quarter 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. As a group, equities analysts expect that Southwest Airlines Co. will post 3.23 EPS for the current year.

Southwest Airlines Dividend Announcement

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

Analysts Set New Price Targets

A number of research analysts recently commented on LUV shares. Wells Fargo & Company boosted their price target on Southwest Airlines from $44.00 to $50.00 and gave the company an "equal weight" rating in a research note on Tuesday, June 30th. The Goldman Sachs Group increased their price objective on shares of Southwest Airlines from $30.00 to $35.00 and gave the stock a "sell" rating in a research note on Thursday, July 2nd. Weiss Ratings raised shares of Southwest Airlines from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday. Barclays boosted their target price 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. Finally, Jefferies Financial Group upped their price target on shares of Southwest Airlines from $44.00 to $50.00 and gave the stock a "hold" rating in a report on Wednesday, July 1st. Nine analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus 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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