Principal Financial Group Inc. Has $20.57 Million Stake in Southwest Airlines Co. $LUV

Key Points

• Principal Financial Group reduced its Southwest Airlines stake by 3.8% in the first quarter, but still held 547,600 shares worth about $20.57 million at quarter-end.
• Institutional ownership remains heavy, with 80.82% of Southwest stock held by institutions and hedge funds, while several other investors made small increases to their positions.
• Analysts are mixed on LUV: the consensus rating is Hold with an average price target of $49.58, even as multiple firms recently raised their targets and Southwest’s shares traded around $48.66.

Principal Financial Group Inc. trimmed its position in shares of Southwest Airlines Co. (NYSE:LUV - Free Report) by 3.8% during the 1st quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 547,600 shares of the airline's stock after selling 21,359 shares during the period. Principal Financial Group Inc. owned 0.11% of Southwest Airlines worth $20,573,000 at the end of the most recent reporting period.

Several other large investors also recently added to or reduced their stakes in the company. MCF Advisors LLC boosted its position in shares of Southwest Airlines by 28.5% in the fourth quarter. MCF Advisors LLC now owns 915 shares of the airline's stock worth $38,000 after buying an additional 203 shares during the period. World Investment Advisors raised its position in Southwest Airlines by 1.0% during the fourth quarter. World Investment Advisors now owns 21,148 shares of the airline's stock valued at $843,000 after buying an additional 210 shares during the period. Parkside Financial Bank & Trust lifted its stake in Southwest Airlines by 7.5% in the 4th quarter. Parkside Financial Bank & Trust now owns 3,063 shares of the airline's stock worth $127,000 after acquiring an additional 213 shares in the last quarter. Annis Gardner Whiting Capital Advisors LLC lifted its stake in Southwest Airlines by 1.5% in the 4th quarter. Annis Gardner Whiting Capital Advisors LLC now owns 16,437 shares of the airline's stock worth $682,000 after acquiring an additional 235 shares in the last quarter. Finally, Transcend Capital Advisors LLC boosted its position in Southwest Airlines by 4.2% during the 4th quarter. Transcend Capital Advisors LLC now owns 6,726 shares of the airline's stock worth $278,000 after acquiring an additional 272 shares during the period. 80.82% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several research firms have weighed in on LUV. Citigroup lifted their target price on Southwest Airlines from $44.00 to $55.00 and gave the company a "neutral" rating in a research note on Friday, June 26th. Evercore increased their price target on shares of Southwest Airlines from $44.00 to $52.00 in a research report on Thursday, June 25th. Morgan Stanley raised their price target on shares of Southwest Airlines from $60.00 to $65.00 and gave the stock an "overweight" rating in a report on Monday, July 6th. TD Cowen boosted their price objective on shares of Southwest Airlines from $47.00 to $53.00 and gave the company a "buy" rating in a research report on Thursday, July 2nd. Finally, Argus dropped their price objective on shares of Southwest Airlines from $55.00 to $45.00 and set a "buy" rating on the stock in a research note on Friday, April 24th. Nine equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have given a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and an average price target of $49.58.

Southwest Airlines Stock Up 0.7%

LUV opened at $48.66 on Wednesday. Southwest Airlines Co. has a fifty-two week low of $28.98 and a fifty-two week high of $55.11. The business has a 50-day moving average of $45.61 and a 200-day moving average of $44.22. The company has a debt-to-equity ratio of 0.66, a current ratio of 0.48 and a quick ratio of 0.41. The company has a market capitalization of $23.79 billion, a PE ratio of 31.40, a price-to-earnings-growth ratio of 0.46 and a beta of 1.12.

Southwest Airlines (NYSE:LUV - Get Free Report) last announced its quarterly earnings results on Wednesday, April 22nd. The airline reported $0.45 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.45. Southwest Airlines had a return on equity of 10.66% and a net margin of 2.83%.The business had revenue of $7.25 billion during the quarter, compared to analyst estimates of $8.46 billion. During the same period in the previous year, the company earned ($0.13) EPS. The firm's revenue was up 12.8% on a year-over-year basis. Equities research analysts forecast that Southwest Airlines Co. will post 3.23 EPS for the current fiscal 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 paid a $0.18 dividend. The ex-dividend date was Thursday, June 11th. This represents a $0.72 dividend on an annualized basis and a yield of 1.5%. Southwest Airlines's payout ratio is 46.45%.

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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