Kettle Hill Capital Management LLC Sells 404,256 Shares of Southwest Airlines Co. $LUV

Key Points

• Kettle Hill Capital Management reduced its Southwest Airlines position by 74.2% in the fourth quarter, selling 404,256 shares and leaving it with 140,208 shares valued at about $5.8 million.
• Institutional ownership remains high, with several other funds increasing stakes in LUV and institutions holding 80.82% of the stock overall.
• Analysts are mixed on the stock: the consensus rating is “Hold” with an average price target of $44.21, while recent targets ranged from $42 to $60 and earnings came in at $0.45 per share, matching estimates.

Kettle Hill Capital Management LLC cut its stake in shares of Southwest Airlines Co. (NYSE:LUV - Free Report) by 74.2% during the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 140,208 shares of the airline's stock after selling 404,256 shares during the quarter. Southwest Airlines makes up about 1.3% of Kettle Hill Capital Management LLC's portfolio, making the stock its 29th largest position. Kettle Hill Capital Management LLC's holdings in Southwest Airlines were worth $5,795,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds have also bought and sold shares of LUV. AQR Capital Management LLC boosted its stake 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 in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in Southwest Airlines by 5.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 61,060 shares of the airline's stock worth $2,050,000 after buying an additional 3,141 shares during the last quarter. Empowered Funds LLC raised its holdings in Southwest Airlines by 7.6% during the first quarter. Empowered Funds LLC now owns 7,459 shares of the airline's stock worth $250,000 after buying an additional 527 shares during the last quarter. EverSource Wealth Advisors LLC raised its holdings in Southwest Airlines by 73.4% during the second quarter. EverSource Wealth Advisors LLC now owns 5,690 shares of the airline's stock worth $185,000 after buying an additional 2,408 shares during the last quarter. Finally, First Trust Advisors LP raised its holdings in Southwest Airlines by 47.4% during the second quarter. First Trust Advisors LP now owns 307,602 shares of the airline's stock worth $9,979,000 after buying an additional 98,986 shares during the last quarter. 80.82% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

LUV has been the topic of several research reports. Raymond James Financial upped their price objective on shares of Southwest Airlines from $45.00 to $55.00 and gave the stock an "outperform" rating in a report on Friday, April 24th. Susquehanna lowered their price objective on shares of Southwest Airlines from $55.00 to $42.00 and set a "neutral" rating on the stock in a report on Thursday, April 2nd. Morgan Stanley upped their price objective on shares of Southwest Airlines from $55.00 to $60.00 and gave the stock an "overweight" rating in a report on Monday, June 1st. TD Cowen upped their price objective on shares of Southwest Airlines from $46.00 to $47.00 and gave the stock a "buy" rating in a report on Monday, April 27th. Finally, Evercore upped their price objective on shares of Southwest Airlines from $43.00 to $44.00 in a report on Friday, April 24th. Nine equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $44.21.

Southwest Airlines Stock Performance

Shares of LUV stock opened at $46.10 on Tuesday. The firm has a 50-day moving average of $40.63 and a 200-day moving average of $42.38. The company has a market cap of $22.53 billion, a P/E ratio of 29.74, a P/E/G ratio of 0.49 and a beta of 1.15. The company has a debt-to-equity ratio of 0.66, a current ratio of 0.48 and a quick ratio of 0.41. Southwest Airlines Co. has a one year low of $28.98 and a one year high of $55.11.

Southwest Airlines (NYSE:LUV - Get Free Report) last announced its earnings results 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 during the quarter, compared to the consensus estimate of $8.46 billion. Southwest Airlines had a net margin of 2.83% and a return on equity of 10.66%. The firm's revenue for the quarter was up 12.8% on a year-over-year basis. During the same quarter in the prior 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 2.81 EPS for the current fiscal year.

Southwest Airlines Announces Dividend

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

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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