Lombard Odier Asset Management USA Corp Reduces Position in Southwest Airlines Co. $LUV

Key Points

• Lombard Odier Asset Management USA Corp cut its Southwest Airlines stake by 49.7% in the first quarter, selling 33,966 shares and leaving it with 34,363 shares valued at about $1.29 million.
• Southwest recently posted a strong quarter, with EPS of $0.94 versus the $0.52 estimate and revenue of $8.72 billion, also beating forecasts and rising 16.4% year over year.
• Analysts remain somewhat mixed but broadly constructive: Barclays and BMO raised targets and reiterated bullish ratings, while the stock’s consensus rating is currently Hold with an average price target of $49.55.

Lombard Odier Asset Management USA Corp decreased its holdings in Southwest Airlines Co. (NYSE:LUV - Free Report) by 49.7% during the 1st quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 34,363 shares of the airline's stock after selling 33,966 shares during the quarter. Lombard Odier Asset Management USA Corp's holdings in Southwest Airlines were worth $1,291,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds have also recently bought and sold shares of the business. SHP Wealth Management purchased a new stake in Southwest Airlines during the 4th quarter worth approximately $25,000. GHP Investment Advisors Inc. acquired a new position in shares of Southwest Airlines in the 4th quarter valued at approximately $26,000. Entrust Financial LLC purchased a new position in shares of Southwest Airlines during the 4th quarter valued at approximately $26,000. Los Angeles Capital Management LLC purchased a new position in shares of Southwest Airlines during the 4th quarter valued at approximately $26,000. Finally, Optima Capital LLC acquired a new stake in shares of Southwest Airlines during the fourth quarter worth approximately $27,000. Hedge funds and other institutional investors own 80.82% of the company's stock.

Southwest Airlines Price Performance

Shares of NYSE LUV opened at $45.19 on Friday. Southwest Airlines Co. has a twelve month low of $28.98 and a twelve month high of $55.11. The company has a current ratio of 0.49, a quick ratio of 0.41 and a debt-to-equity ratio of 0.54. The company has a market capitalization of $22.09 billion, a price-to-earnings ratio of 27.72, a price-to-earnings-growth ratio of 0.37 and a beta of 1.12. The business has a 50 day simple moving average of $46.01 and a 200-day simple moving average of $44.29.

Southwest Airlines (NYSE:LUV - Get Free Report) last announced its quarterly earnings data on Wednesday, July 22nd. The airline reported $0.94 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.52 by $0.42. The firm had revenue of $8.72 billion for the quarter, compared to analysts' expectations of $8.58 billion. Southwest Airlines had a return on equity of 14.15% and a net margin of 2.78%.The firm's revenue for the quarter was up 16.4% on a year-over-year basis. During the same period last year, the business posted $0.43 earnings per share. 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. As a group, equities research analysts expect that Southwest Airlines Co. will post 3.59 earnings per share for the current year.

Southwest Airlines Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, July 2nd. Shareholders of record on Thursday, June 11th were issued a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date of this dividend was Thursday, June 11th. Southwest Airlines's dividend payout ratio is 44.17%.

Southwest Airlines News Summary

Here are the key news stories impacting Southwest Airlines this week:

• Positive Sentiment: BMO Capital Markets raised its price target on Southwest Airlines to $60 from $58.50 and reiterated an outperform rating, signaling confidence in further upside after the company’s earnings beat. Benzinga report
• Positive Sentiment: Barclays kept a buy rating on Southwest Airlines, reinforcing the bullish view from analysts following the airline’s latest quarter. Barclays article
• Positive Sentiment: Southwest reported second-quarter adjusted EPS of $0.94, well above estimates, and record quarterly revenue, showing improved earnings power and solid demand. Yahoo Finance report
• Positive Sentiment: Several earnings recaps highlighted stronger fares, commercial gains, and margin expansion, suggesting the company’s transformation efforts are starting to show through in results. Zacks report

Analyst Ratings Changes

LUV has been the subject of a number of research analyst reports. Barclays lifted their price target on shares of Southwest Airlines from $56.00 to $65.00 and gave the stock an "overweight" rating in a research note on Thursday, June 25th. Weiss Ratings upgraded shares of Southwest Airlines from a "hold (c)" rating to a "hold (c+)" rating in a research note on Tuesday. TD Cowen raised their price objective on shares of Southwest Airlines from $47.00 to $53.00 and gave the stock a "buy" rating in a report on Thursday, July 2nd. Jefferies Financial Group boosted their target price on shares of Southwest Airlines from $44.00 to $50.00 and gave the stock a "hold" rating in a research report on Wednesday, July 1st. Finally, Susquehanna upped their target price on shares of Southwest Airlines from $44.00 to $55.00 and gave the company a "neutral" rating in a research note on Tuesday, July 7th. Nine investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat.com, Southwest Airlines currently has a consensus rating of "Hold" and an average target price of $49.55.

Southwest Airlines 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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