Hsbc Holdings PLC Acquires New Position in Southwest Airlines Co. $LUV

Hsbc Holdings PLC acquired a new position in shares of Southwest Airlines Co. (NYSE:LUV - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm acquired 900,590 shares of the airline's stock, valued at approximately $46,295,000. Hsbc Holdings PLC owned about 0.18% of Southwest Airlines at the end of the most recent quarter.

Other institutional investors also recently bought and sold shares of the company. SHP Wealth Management acquired a new stake in shares of Southwest Airlines during the 4th quarter worth approximately $25,000. Entrust Financial LLC purchased a new stake in shares of Southwest Airlines during the 4th quarter valued at approximately $26,000. Los Angeles Capital Management LLC acquired a new position in Southwest Airlines in the fourth quarter valued at approximately $26,000. Fiduciary Financial Advisors acquired a new position in Southwest Airlines in the second quarter valued at approximately $32,000. Finally, DV Equities LLC purchased a new position in Southwest Airlines in the fourth quarter worth approximately $30,000. 80.82% of the stock is owned by hedge funds and other institutional investors.

Southwest Airlines Stock Down 0.3%

Shares of LUV opened at $40.70 on Thursday. The company has a debt-to-equity ratio of 0.54, a quick ratio of 0.42 and a current ratio of 0.49. Southwest Airlines Co. has a 1 year low of $29.26 and a 1 year high of $55.11. The stock has a market capitalization of $19.91 billion, a PE ratio of 24.97, a P/E/G ratio of 0.37 and a beta of 1.14. The company's 50-day simple moving average is $46.92 and its 200-day simple moving average is $44.25.

Southwest Airlines (NYSE:LUV - Get Free Report) last posted its quarterly earnings results on Wednesday, July 22nd. The airline reported $0.94 EPS for the quarter, topping the consensus estimate of $0.52 by $0.42. Southwest Airlines had a net margin of 2.78% and a return on equity of 14.15%. The business had revenue of $8.72 billion during the quarter, compared to the consensus estimate of $8.58 billion. During the same quarter in the previous year, the firm posted $0.43 earnings per share. The company's quarterly 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. Analysts forecast that Southwest Airlines Co. will post 3.32 earnings per share for the current fiscal year.

Southwest Airlines Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, September 3rd will be paid a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 1.8%. The ex-dividend date of this dividend is Thursday, September 3rd. Southwest Airlines's payout ratio is presently 44.17%.

Wall Street Analyst Weigh In

LUV has been the topic of a number of research analyst reports. The Goldman Sachs Group lifted their target price on Southwest Airlines from $30.00 to $35.00 and gave the company a "sell" rating in a research report on Thursday, July 2nd. Morgan Stanley increased their price target on Southwest Airlines from $60.00 to $65.00 and gave the stock an "overweight" rating in a report on Monday, July 6th. Evercore raised their price objective on Southwest Airlines from $44.00 to $52.00 in a research report on Thursday, June 25th. JPMorgan Chase & Co. reduced their price objective on shares of Southwest Airlines from $60.00 to $59.00 and set an "overweight" rating on the stock in a report on Friday, July 24th. Finally, Citigroup decreased their target price on shares of Southwest Airlines from $55.00 to $50.00 and set a "neutral" rating on the stock in a research report on Friday, July 24th. Nine research 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's stock. According to MarketBeat, Southwest Airlines has a consensus rating of "Hold" and a consensus price target of $49.01.

Southwest Airlines Company 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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