Renaissance Technologies LLC Purchases Shares of 197,380 Southwest Airlines Co. $LUV

Key Points

• Renaissance Technologies initiated a Southwest Airlines position by purchasing 197,380 shares worth approximately $7.4 million. Institutional investors collectively own 80.82% of the company.
• Southwest reported quarterly earnings of $0.94 per share, surpassing the $0.52 consensus estimate, while revenue rose 16.4% year over year to $8.72 billion.
• The airline declared a quarterly dividend of $0.18 per share, equivalent to a $0.72 annualized payout and a 1.5% yield. Analysts remain divided, resulting in a consensus “Hold” rating and an average price target of $49.55.

Renaissance Technologies LLC purchased a new stake in shares of Southwest Airlines Co. (NYSE:LUV - Free Report) in the first quarter, according to its most recent 13F filing with the SEC. The fund purchased 197,380 shares of the airline's stock, valued at approximately $7,416,000.

Several other institutional investors have also recently made changes to their positions in the company. SHP Wealth Management bought a new stake in Southwest Airlines during the fourth quarter valued at $25,000. GHP Investment Advisors Inc. bought a new position in Southwest Airlines in the 4th quarter worth about $26,000. Entrust Financial LLC purchased a new stake in shares of Southwest Airlines in the 4th quarter valued at about $26,000. Los Angeles Capital Management LLC purchased a new stake in shares of Southwest Airlines in the 4th quarter valued at about $26,000. Finally, Optima Capital LLC bought a new stake in shares of Southwest Airlines during the 4th quarter valued at about $27,000. Institutional investors own 80.82% of the company's stock.

Southwest Airlines Price Performance

Shares of NYSE:LUV opened at $46.99 on Tuesday. The stock has a market cap of $22.99 billion, a PE ratio of 28.83, a PEG ratio of 0.39 and a beta of 1.14. The company's fifty day moving average is $46.73 and its 200 day moving average is $44.40. Southwest Airlines Co. has a 52 week low of $28.98 and a 52 week high of $55.11. The company has a quick ratio of 0.42, a current ratio of 0.49 and a debt-to-equity ratio of 0.54.

Southwest Airlines (NYSE:LUV - Get Free Report) last posted its quarterly earnings results 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. Southwest Airlines had a net margin of 2.78% and a return on equity of 14.15%. The business had revenue of $8.72 billion during the quarter, compared to the consensus estimate of $8.58 billion. During the same period in the previous year, the firm posted $0.43 earnings per share. The firm'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. Research analysts anticipate that Southwest Airlines Co. will post 3.49 earnings per share for the current year.

Southwest Airlines Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, September 3rd will be issued a dividend of $0.18 per share. The ex-dividend date is Thursday, September 3rd. This represents a $0.72 annualized dividend and a yield of 1.5%. Southwest Airlines's dividend payout ratio is currently 44.17%.

Wall Street Analyst Weigh In

Several brokerages have recently commented on LUV. Wall Street Zen raised Southwest Airlines from a "hold" rating to a "buy" rating in a report on Sunday, July 5th. Wells Fargo & Company raised their target price on shares of Southwest Airlines from $44.00 to $50.00 and gave the company an "equal weight" rating in a research note on Tuesday, June 30th. Barclays lifted their target price 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. Morgan Stanley increased 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. Finally, The Goldman Sachs Group raised their price objective on shares of Southwest Airlines from $30.00 to $35.00 and gave the company a "sell" rating in a research report on Thursday, July 2nd. Nine equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $49.55.

Southwest Airlines Company 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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