Man Group plc Invests $3.38 Million in Southwest Airlines Co. $LUV

Key Points

• Man Group purchased 65,642 Southwest Airlines shares in the second quarter, valued at approximately $3.38 million. Institutional investors collectively own 80.82% of the company.
• Southwest reported quarterly earnings of $0.94 per share, exceeding the $0.52 consensus estimate, while revenue reached $8.72 billion and rose 16.4% year over year.
• The company declared a quarterly dividend of $0.18 per share, representing an annualized dividend of $0.72 and a 1.9% yield. Analysts maintain a consensus “Hold” rating with a $49.01 price target.

Man Group plc purchased a new stake in Southwest Airlines Co. (NYSE:LUV - Free Report) in the 2nd quarter, according to its most recent disclosure with the SEC. The fund purchased 65,642 shares of the airline's stock, valued at approximately $3,375,000.

A number of other institutional investors have also modified their holdings of LUV. SHP Wealth Management bought a new position in shares of Southwest Airlines during the fourth quarter valued at approximately $25,000. Entrust Financial LLC bought a new stake in shares of Southwest Airlines in the 4th quarter worth approximately $26,000. Los Angeles Capital Management LLC bought a new stake in shares of Southwest Airlines in the 4th quarter worth approximately $26,000. Fiduciary Financial Advisors acquired a new position in Southwest Airlines during the 2nd quarter valued at approximately $32,000. Finally, DV Equities LLC acquired a new position in Southwest Airlines during the 4th quarter valued at approximately $30,000. Institutional investors own 80.82% of the company's stock.

Southwest Airlines Price Performance

Shares of LUV opened at $38.54 on Tuesday. Southwest Airlines Co. has a one year low of $29.26 and a one year high of $55.11. The stock's fifty day moving average is $46.39 and its 200-day moving average is $43.94. The company has a debt-to-equity ratio of 0.54, a quick ratio of 0.42 and a current ratio of 0.49. The firm has a market capitalization of $18.85 billion, a price-to-earnings ratio of 23.64, a price-to-earnings-growth ratio of 0.36 and a beta of 1.14.

Southwest Airlines (NYSE:LUV - Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The airline reported $0.94 earnings per share for the quarter, topping the consensus estimate of $0.52 by $0.42. The business had revenue of $8.72 billion during the quarter, compared to the consensus estimate of $8.58 billion. Southwest Airlines had a net margin of 2.78% and a return on equity of 14.15%. The company's quarterly revenue was up 16.4% compared to the same quarter last year. During the same quarter in the prior year, the company 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. Equities analysts anticipate that Southwest Airlines Co. will post 3.32 EPS for the current year.

Southwest Airlines Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd will be paid a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date of this dividend is Thursday, September 3rd. Southwest Airlines's dividend payout ratio is currently 44.17%.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on LUV shares. Raymond James Financial dropped their target price on Southwest Airlines from $60.00 to $54.00 and set an "outperform" rating on the stock in a research report on Monday, August 24th. Morgan Stanley boosted their price target on shares of Southwest Airlines from $60.00 to $65.00 and gave the company an "overweight" rating in a report on Monday, July 6th. JPMorgan Chase & Co. lowered their price target on shares of Southwest Airlines from $60.00 to $59.00 and set an "overweight" rating for the company in a research report on Friday, July 24th. The Goldman Sachs Group increased their price objective on shares of Southwest Airlines from $30.00 to $35.00 and gave the stock a "sell" rating in a report on Thursday, July 2nd. Finally, Zacks Research upgraded shares of Southwest Airlines from a "strong sell" rating to a "hold" rating in a research report on Thursday, June 25th. Nine 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's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $49.01.

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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