HighTower Advisors LLC Raises Position in Southwest Airlines Co. $LUV

Key Points

• HighTower Advisors increased its Southwest Airlines position by 19.2% in the second quarter, bringing its holdings to 221,388 shares valued at approximately $11.4 million. Institutional investors collectively own 80.82% of the company.
• Analyst sentiment is mixed, with Southwest receiving a consensus “Hold” rating and an average price target of $49.01. Recent price targets range from $48 to $54, while several firms adjusted their ratings or targets.
• Southwest exceeded quarterly expectations, reporting $0.94 in earnings per share and $8.72 billion in revenue, with revenue up 16.4% year over year. The company also declared a quarterly dividend of $0.18 per share, representing a 1.9% yield.

HighTower Advisors LLC lifted its holdings in shares of Southwest Airlines Co. (NYSE:LUV - Free Report) by 19.2% during the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 221,388 shares of the airline's stock after purchasing an additional 35,732 shares during the quarter. HighTower Advisors LLC's holdings in Southwest Airlines were worth $11,384,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also made changes to their positions in the business. SHP Wealth Management acquired a new position in shares of Southwest Airlines during the 4th quarter valued at about $25,000. Entrust Financial LLC purchased a new position in shares of Southwest Airlines during the 4th quarter worth about $26,000. Los Angeles Capital Management LLC acquired a new stake in shares of Southwest Airlines in the fourth quarter worth approximately $26,000. Scarborough Advisors LLC acquired a new stake in shares of Southwest Airlines in the first quarter worth approximately $28,000. Finally, DV Equities LLC purchased a new stake in Southwest Airlines in the fourth quarter valued at approximately $30,000. Hedge funds and other institutional investors own 80.82% of the company's stock.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on LUV. Wall Street Zen lowered shares of Southwest Airlines from a "buy" rating to a "hold" rating in a research report on Saturday, September 5th. TD Cowen decreased their price target on shares of Southwest Airlines from $53.00 to $48.00 and set a "buy" rating on the stock in a report on Monday, August 24th. Zacks Research raised shares of Southwest Airlines from a "strong sell" rating to a "hold" rating in a research note on Thursday, June 25th. Wells Fargo & Company boosted their price objective on shares of Southwest Airlines from $44.00 to $50.00 and gave the company an "equal weight" rating in a research note on Tuesday, June 30th. Finally, Raymond James Financial dropped their price objective on Southwest Airlines from $60.00 to $54.00 and set an "outperform" rating for the company in a report on Monday, August 24th. Nine investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat, Southwest Airlines presently has a consensus rating of "Hold" and a consensus price target of $49.01.

Southwest Airlines Stock Up 0.0%

LUV opened at $38.69 on Thursday. Southwest Airlines Co. has a 1 year low of $29.26 and a 1 year high of $55.11. The firm has a 50 day moving average price of $44.66 and a 200 day moving average price of $43.28. The company has a debt-to-equity ratio of 0.54, a quick ratio of 0.42 and a current ratio of 0.49. The company has a market cap of $18.93 billion, a PE ratio of 23.74, a price-to-earnings-growth ratio of 0.36 and a beta of 1.13.

Southwest Airlines (NYSE:LUV - Get Free Report) last announced its quarterly earnings results on Wednesday, July 22nd. The airline reported $0.94 earnings per share for the quarter, beating analysts' consensus estimates of $0.52 by $0.42. Southwest Airlines had a net margin of 2.78% and a return on equity of 14.15%. The firm had revenue of $8.72 billion for the quarter, compared to analysts' expectations of $8.58 billion. During the same period in the previous year, the company posted $0.43 earnings per share. Southwest Airlines's revenue was up 16.4% compared to the same quarter last year. 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. Sell-side analysts expect that Southwest Airlines Co. will post 3.28 earnings per share for the current year.

Southwest Airlines Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, September 3rd will be issued a dividend of $0.18 per share. The ex-dividend date is Thursday, September 3rd. This represents a $0.72 annualized dividend and a dividend yield of 1.9%. Southwest Airlines's payout ratio is presently 44.17%.

Southwest Airlines Profile

Southwest Airlines Co is a major U.S. passenger airline headquartered in Dallas, Texas. Operating under the Southwest Airlines brand, the company provides scheduled air transportation for domestic and international travelers and also offers air cargo services.

Southwest was founded in 1967 and began commercial service in 1971, initially connecting Dallas, Houston and San Antonio. The airline expanded its network across the United States and now serves numerous destinations in the United States, Mexico, the Caribbean, Central America and other nearby international markets.

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