Kiltearn Partners LLP Takes $31.86 Million Position in Southwest Airlines Co. $LUV

Key Points

• Kiltearn Partners LLP acquired 619,627 Southwest Airlines shares worth approximately $31.86 million, making LUV its third-largest portfolio holding at 7.7% of assets.
• Southwest reported quarterly EPS of $0.94, exceeding estimates of $0.52, while revenue rose 16.4% year over year to $8.72 billion. The company maintained full-year 2026 EPS guidance of $3.25–$4.25.
• Analyst sentiment remains mixed, with an overall “Hold” rating and an average price target of $49.55. Southwest also declared a quarterly dividend of $0.18 per share, representing a 1.8% yield.

Kiltearn Partners LLP acquired a new stake in shares of Southwest Airlines Co. (NYSE:LUV - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The fund acquired 619,627 shares of the airline's stock, valued at approximately $31,861,000. Southwest Airlines accounts for approximately 7.7% of Kiltearn Partners LLP's portfolio, making the stock its 3rd biggest position. Kiltearn Partners LLP owned approximately 0.13% of Southwest Airlines at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. AQR Capital Management LLC raised its stake in Southwest Airlines by 100.6% during the 1st 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 period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted 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 valued at $2,050,000 after purchasing an additional 3,141 shares in the last quarter. Empowered Funds LLC boosted its position in shares of Southwest Airlines by 7.6% in the first quarter. Empowered Funds LLC now owns 7,459 shares of the airline's stock worth $250,000 after purchasing an additional 527 shares during the period. EverSource Wealth Advisors LLC boosted its position in shares of Southwest Airlines by 73.4% in the second 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 boosted its position in shares of Southwest Airlines by 47.4% in the second 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 owned by hedge funds and other institutional investors.

Southwest Airlines Trading Up 1.3%

Southwest Airlines stock opened at $40.41 on Friday. The stock has a market cap of $19.77 billion, a P/E ratio of 24.79, a PEG ratio of 0.36 and a beta of 1.14. The company has a debt-to-equity ratio of 0.54, a current ratio of 0.49 and a quick ratio of 0.42. Southwest Airlines Co. has a 1 year low of $29.26 and a 1 year high of $55.11. The firm's 50 day moving average price is $47.28 and its 200-day moving average price is $44.53.

Southwest Airlines (NYSE:LUV - Get Free Report) last issued its earnings results on Wednesday, July 22nd. The airline reported $0.94 earnings per share for the quarter, topping 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 during the quarter, compared to analyst estimates of $8.58 billion. During the same quarter in the prior year, the business earned $0.43 earnings per share. Southwest Airlines's revenue for the quarter was up 16.4% on a year-over-year basis. 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. On average, equities analysts predict that Southwest Airlines Co. will post 3.41 earnings per share for the current fiscal year.

Southwest Airlines Announces Dividend

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

Analyst Upgrades and Downgrades

Several brokerages have recently commented on LUV. Barclays raised their price objective on shares of Southwest Airlines from $56.00 to $65.00 and gave the company an "overweight" rating in a research report on Thursday, June 25th. Zacks Research raised shares of Southwest Airlines from a "strong sell" rating to a "hold" rating in a report on Thursday, June 25th. Raymond James Financial increased their price target on Southwest Airlines from $55.00 to $60.00 and gave the stock an "outperform" rating in a research note on Monday, July 6th. Bank of America raised their price target on Southwest Airlines from $40.00 to $45.00 and gave the company an "underperform" rating in a report on Wednesday, July 1st. Finally, Citigroup lowered their price objective on 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 assigned a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $49.55.

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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