Hodges Capital Management Inc. Buys Shares of 83,308 Southwest Airlines Co. $LUV

Key Points

• Hodges Capital Management initiated a new position in Southwest Airlines during the first quarter, buying 83,308 shares valued at about $3.13 million.
• Institutional ownership remains heavy, with 80.82% of Southwest Airlines stock held by hedge funds and other institutional investors.
• Analysts are broadly cautious: the stock carries an average “Hold” rating with a consensus price target of $49.58, while Southwest recently traded at $50.81.

Hodges Capital Management Inc. purchased a new position in shares of Southwest Airlines Co. (NYSE:LUV - Free Report) during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm purchased 83,308 shares of the airline's stock, valued at approximately $3,130,000.

A number of other hedge funds and other institutional investors have also modified their holdings of the company. AQR Capital Management LLC boosted its position in Southwest Airlines by 100.6% during the first quarter. AQR Capital Management LLC now owns 39,347 shares of the airline's stock worth $1,303,000 after acquiring an additional 19,729 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in Southwest Airlines by 5.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 61,060 shares of the airline's stock valued at $2,050,000 after acquiring an additional 3,141 shares during the last quarter. Empowered Funds LLC raised its holdings in Southwest Airlines by 7.6% in the 1st quarter. Empowered Funds LLC now owns 7,459 shares of the airline's stock valued at $250,000 after acquiring an additional 527 shares during the last quarter. EverSource Wealth Advisors LLC lifted its stake in shares of Southwest Airlines by 73.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 5,690 shares of the airline's stock worth $185,000 after purchasing an additional 2,408 shares during the period. Finally, First Trust Advisors LP lifted its stake in shares of Southwest Airlines by 47.4% during the 2nd quarter. First Trust Advisors LP now owns 307,602 shares of the airline's stock worth $9,979,000 after purchasing an additional 98,986 shares during the period. 80.82% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the company. Argus decreased their price objective on Southwest Airlines from $55.00 to $45.00 and set a "buy" rating on the stock in a report on Friday, April 24th. Jefferies Financial Group upped their target price on Southwest Airlines from $44.00 to $50.00 and gave the company a "hold" rating in a research note on Wednesday, July 1st. HSBC upgraded Southwest Airlines from a "reduce" rating to a "hold" rating and increased their target price for the stock from $24.40 to $36.10 in a research report on Friday, April 24th. Barclays lifted their price target on Southwest Airlines from $56.00 to $65.00 and gave the company an "overweight" rating in a report on Thursday, June 25th. Finally, Evercore upped their price objective on shares of Southwest Airlines from $44.00 to $52.00 in a research note on Thursday, June 25th. Nine analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $49.58.

Southwest Airlines Stock Up 1.1%

Shares of Southwest Airlines stock opened at $50.81 on Tuesday. Southwest Airlines Co. has a twelve month low of $28.98 and a twelve month high of $55.11. The stock has a market cap of $24.83 billion, a price-to-earnings ratio of 32.78, a price-to-earnings-growth ratio of 0.51 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 company has a fifty day moving average price of $43.34 and a 200 day moving average price of $43.59.

Southwest Airlines (NYSE:LUV - Get Free Report) last released its quarterly earnings data on Wednesday, April 22nd. The airline reported $0.45 EPS for the quarter, meeting the consensus estimate of $0.45. The company had revenue of $7.25 billion for the quarter, compared to analyst estimates of $8.46 billion. Southwest Airlines had a return on equity of 10.66% and a net margin of 2.83%.The firm's revenue was up 12.8% compared to the same quarter last year. During the same period last year, the company posted ($0.13) earnings per share. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. Equities research analysts forecast that Southwest Airlines Co. will post 3.02 earnings per share for the current fiscal year.

Southwest Airlines Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, July 2nd. Stockholders of record on Thursday, June 11th were paid a $0.18 dividend. The ex-dividend date was Thursday, June 11th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.4%. Southwest Airlines's dividend payout ratio (DPR) is 46.45%.

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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