Fifth Third Bancorp Acquires 60,273 Shares of Southwest Airlines Co. $LUV

Key Points

• Fifth Third Bancorp increased its stake in Southwest Airlines by 255.9% in the first quarter, buying 60,273 additional shares and bringing its total holdings to 83,825 shares worth about $3.15 million.
• Southwest Airlines reported Q1 EPS of $0.45, matching analyst expectations, but revenue of $7.25 billion fell short of the $8.46 billion forecast even as revenue rose 12.8% year over year.
• Analyst sentiment remains mixed: Southwest has a Hold consensus rating with an average target price of $49.58, while recent price-target hikes came from firms including Wells Fargo and Morgan Stanley.

Fifth Third Bancorp grew its stake in shares of Southwest Airlines Co. (NYSE:LUV - Free Report) by 255.9% in the first quarter, according to its most recent filing with the SEC. The institutional investor owned 83,825 shares of the airline's stock after purchasing an additional 60,273 shares during the period. Fifth Third Bancorp's holdings in Southwest Airlines were worth $3,149,000 as of its most recent filing with the SEC.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Norges Bank bought a new stake in shares of Southwest Airlines in the 4th quarter worth $172,038,000. SG Americas Securities LLC boosted its holdings in Southwest Airlines by 2,468.4% during the fourth quarter. SG Americas Securities LLC now owns 3,752,352 shares of the airline's stock worth $155,085,000 after purchasing an additional 3,606,255 shares during the last quarter. Massachusetts Financial Services Co. MA bought a new stake in Southwest Airlines in the 4th quarter worth about $143,450,000. Franklin Resources Inc. grew its position 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 purchasing an additional 2,626,853 shares in the last quarter. Finally, Mizuho Markets Americas LLC purchased a new stake in Southwest Airlines in the 4th quarter valued at about $55,320,000. 80.82% of the stock is owned by hedge funds and other institutional investors.

Southwest Airlines Stock Up 0.0%

Shares of NYSE LUV opened at $48.09 on Monday. The company has a debt-to-equity ratio of 0.66, a current ratio of 0.48 and a quick ratio of 0.41. The stock has a market capitalization of $23.50 billion, a PE ratio of 31.02, a P/E/G ratio of 0.45 and a beta of 1.12. Southwest Airlines Co. has a one year low of $28.98 and a one year high of $55.11. The business's fifty day moving average price is $45.26 and its 200-day moving average price is $44.12.

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

Southwest Airlines Dividend Announcement

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

Analyst Upgrades and Downgrades

LUV has been the subject of a number of research analyst reports. Wells Fargo & Company increased their price target on Southwest Airlines from $44.00 to $50.00 and gave the company an "equal weight" rating in a research report on Tuesday, June 30th. Zacks Research upgraded Southwest Airlines from a "strong sell" rating to a "hold" rating in a research note on Thursday, June 25th. Morgan Stanley lifted their target price on Southwest Airlines from $60.00 to $65.00 and gave the stock an "overweight" rating in a research note on Monday, July 6th. HSBC raised shares of Southwest Airlines from a "reduce" rating to a "hold" rating and boosted their price target for the stock from $24.40 to $36.10 in a report on Friday, April 24th. Finally, The Goldman Sachs Group raised their price objective on shares of Southwest Airlines from $30.00 to $35.00 and gave the stock a "sell" rating in a report on Thursday, July 2nd. Nine equities research 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. According to MarketBeat, Southwest Airlines has an average rating of "Hold" and a consensus 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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