Kingstone Capital Partners Texas LLC Buys Shares of 114,842 Southwest Airlines Co. $LUV

Key Points

• Kingstone Capital Partners Texas LLC invested approximately $3.73 million in Southwest Airlines by purchasing 114,842 shares during the 2nd quarter of 2023.
• Southwest Airlines reported a 0.43 EPS for the last quarter, missing estimates and experiencing a 2.1% decline in revenue compared to the previous year.
• The company announced a quarterly dividend of $0.18 per share with a dividend payout ratio of 109.09%, indicating significant returns to shareholders despite recent earnings challenges.

Kingstone Capital Partners Texas LLC purchased a new position in Southwest Airlines Co. (NYSE:LUV - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The firm purchased 114,842 shares of the airline's stock, valued at approximately $3,725,000.

Other institutional investors also recently bought and sold shares of the company. GTS Securities LLC lifted its position in Southwest Airlines by 108.8% during the 4th quarter. GTS Securities LLC now owns 7,986 shares of the airline's stock worth $268,000 after buying an additional 98,593 shares in the last quarter. Public Employees Retirement System of Ohio raised its stake in Southwest Airlines by 31.0% during the 4th quarter. Public Employees Retirement System of Ohio now owns 284,312 shares of the airline's stock worth $9,559,000 after buying an additional 67,307 shares during the period. Forum Financial Management LP lifted its holdings in shares of Southwest Airlines by 92.2% during the 4th quarter. Forum Financial Management LP now owns 16,599 shares of the airline's stock valued at $558,000 after purchasing an additional 7,963 shares in the last quarter. Ameriflex Group Inc. acquired a new position in shares of Southwest Airlines in the fourth quarter valued at approximately $131,000. Finally, Pinnacle Wealth Planning Services Inc. acquired a new position in shares of Southwest Airlines during the fourth quarter worth about $206,000. 80.82% of the stock is currently owned by institutional investors.

Southwest Airlines Price Performance

Shares of LUV traded down $0.24 during midday trading on Monday, reaching $32.28. The stock had a trading volume of 10,781,117 shares, compared to its average volume of 8,258,661. The company has a market capitalization of $16.95 billion, a price-to-earnings ratio of 48.91, a price-to-earnings-growth ratio of 0.84 and a beta of 1.19. The company's 50-day moving average is $32.41 and its 200 day moving average is $31.42. The company has a current ratio of 0.56, a quick ratio of 0.49 and a debt-to-equity ratio of 0.51. Southwest Airlines Co. has a 12-month low of $23.82 and a 12-month high of $37.96.

Southwest Airlines (NYSE:LUV - Get Free Report) last issued its quarterly earnings results on Wednesday, July 23rd. The airline reported $0.43 earnings per share for the quarter, missing the consensus estimate of $0.51 by ($0.08). Southwest Airlines had a return on equity of 6.27% and a net margin of 1.43%.The firm had revenue of $7.24 billion during the quarter, compared to analysts' expectations of $7.30 billion. During the same period in the previous year, the company earned $0.58 earnings per share. Southwest Airlines's revenue for the quarter was down 2.1% on a year-over-year basis. On average, equities analysts predict that Southwest Airlines Co. will post 1.55 EPS for the current fiscal year.

Southwest Airlines announced that its Board of Directors has approved a share repurchase program on Wednesday, July 23rd that authorizes the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization authorizes the airline to buy up to 9.4% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company's leadership believes its shares are undervalued.

Southwest Airlines Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 24th. Investors of record on Wednesday, September 3rd will be given a dividend of $0.18 per share. The ex-dividend date is Wednesday, September 3rd. This represents a $0.72 annualized dividend and a dividend yield of 2.2%. Southwest Airlines's dividend payout ratio (DPR) is currently 109.09%.

Insider Activity at Southwest Airlines

In related news, Director Sarah Feinberg bought 1,500 shares of Southwest Airlines stock in a transaction dated Tuesday, August 5th. The shares were acquired at an average cost of $30.01 per share, with a total value of $45,015.00. Following the completion of the transaction, the director owned 14,229 shares in the company, valued at $427,012.29. The trade was a 11.78% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Gregg A. Saretsky acquired 3,345 shares of Southwest Airlines stock in a transaction on Wednesday, August 6th. The shares were purchased at an average price of $30.03 per share, for a total transaction of $100,450.35. Following the completion of the acquisition, the director directly owned 23,644 shares in the company, valued at $710,029.32. This trade represents a 16.48% increase in their ownership of the stock. The disclosure for this purchase can be found here. Corporate insiders own 0.79% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts have commented on the stock. JPMorgan Chase & Co. upped their price objective on shares of Southwest Airlines from $28.00 to $35.00 and gave the company an "overweight" rating in a report on Friday, September 12th. Deutsche Bank Aktiengesellschaft upgraded Southwest Airlines from a "hold" rating to a "buy" rating and set a $40.00 target price on the stock in a report on Thursday, May 29th. Susquehanna raised their price objective on Southwest Airlines from $25.00 to $30.00 and gave the company a "neutral" rating in a research note on Tuesday, August 5th. Jefferies Financial Group raised Southwest Airlines from an "underperform" rating to a "hold" rating and increased their price target for the company from $24.00 to $33.00 in a research report on Tuesday, May 27th. Finally, Wall Street Zen lowered Southwest Airlines from a "hold" rating to a "sell" rating in a report on Saturday, July 26th. Five investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $33.38.

Southwest Airlines Profile

Southwest Airlines Co operates as a passenger airline company that provides scheduled air transportation services in the United States and near-international markets. As of December 31, 2023, the company operated a total fleet of 817 Boeing 737 aircraft; and served 121 destinations in 42 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as ten near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos.