Southwest Airlines Co. $LUV Shares Bought by WS Management Lllp

Key Points

• WS Management Lllp increased its stake in Southwest Airlines by 6.1% during the first quarter, owning 636,640 shares valued at approximately $21.4 million, making it the firm's 5th largest position.
• Southwest Airlines announced a quarterly dividend of $0.18 per share to be paid on September 24, representing a 2.2% dividend yield and a payout ratio of 109.09%.
• Several analysts have mixed ratings on the stock, with a consensus rating of "Reduce" and an average price target of $33.06, while the stock recently traded at $32.54.

WS Management Lllp lifted its holdings in shares of Southwest Airlines Co. (NYSE:LUV - Free Report) by 6.1% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 636,640 shares of the airline's stock after buying an additional 36,640 shares during the period. Southwest Airlines comprises 2.4% of WS Management Lllp's holdings, making the stock its 5th largest position. WS Management Lllp owned approximately 0.11% of Southwest Airlines worth $21,378,000 as of its most recent SEC filing.

Other large investors also recently modified their holdings of the company. Pandora Wealth Inc. acquired a new position in shares of Southwest Airlines during the 1st quarter worth about $34,000. Cheviot Value Management LLC acquired a new position in shares of Southwest Airlines during the 1st quarter worth about $42,000. Quent Capital LLC boosted its stake in shares of Southwest Airlines by 78.6% during the 1st quarter. Quent Capital LLC now owns 1,472 shares of the airline's stock worth $49,000 after buying an additional 648 shares during the last quarter. Brooklyn Investment Group lifted its stake in Southwest Airlines by 122.3% in the 1st quarter. Brooklyn Investment Group now owns 1,787 shares of the airline's stock valued at $60,000 after purchasing an additional 983 shares during the last quarter. Finally, Optiver Holding B.V. lifted its stake in Southwest Airlines by 370.3% in the 4th quarter. Optiver Holding B.V. now owns 1,919 shares of the airline's stock valued at $65,000 after purchasing an additional 1,511 shares during the last quarter. 80.82% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the stock. Hsbc Global Res upgraded shares of Southwest Airlines to a "moderate sell" rating in a research note on Thursday, July 24th. Barclays raised their target price on shares of Southwest Airlines from $26.00 to $34.00 and gave the company an "equal weight" rating in a research note on Thursday, July 10th. Evercore ISI cut their target price on shares of Southwest Airlines from $40.00 to $34.00 and set an "in-line" rating for the company in a research note on Friday, July 25th. Jefferies Financial Group upgraded shares of Southwest Airlines from an "underperform" rating to a "hold" rating and raised their target price for the company from $24.00 to $33.00 in a research note on Tuesday, May 27th. Finally, UBS Group raised their target price on shares of Southwest Airlines from $27.00 to $34.00 and gave the company a "neutral" rating in a research note on Monday, July 7th. Four analysts have rated the stock with a Buy rating, nine have given a Hold rating and six have given a Sell rating to the company's stock. According to MarketBeat.com, Southwest Airlines has a consensus rating of "Reduce" and an average price target of $33.06.

Southwest Airlines Stock Down 0.7%

Southwest Airlines stock opened at $32.54 on Tuesday. Southwest Airlines Co. has a twelve month low of $23.82 and a twelve month high of $37.96. The company's 50-day moving average price is $32.78 and its two-hundred day moving average price is $31.16. The stock has a market cap of $17.09 billion, a P/E ratio of 49.30, a P/E/G ratio of 0.85 and a beta of 1.26. The company has a quick ratio of 0.49, a current ratio of 0.56 and a debt-to-equity ratio of 0.51.

Southwest Airlines (NYSE:LUV - Get Free Report) last announced its earnings results on Wednesday, July 23rd. The airline reported $0.43 EPS 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 business had revenue of $7.24 billion for the quarter, compared to the consensus estimate of $7.30 billion. During the same period in the prior year, the business posted $0.58 earnings per share. The firm's revenue for the quarter was down 2.1% compared to the same quarter last year. As a group, analysts expect that Southwest Airlines Co. will post 1.55 EPS for the current year.

Southwest Airlines Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 24th. Stockholders of record on Wednesday, September 3rd will be issued a dividend of $0.18 per share. The ex-dividend date of this dividend 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%.

Southwest Airlines declared that its Board of Directors has initiated a share repurchase plan on Wednesday, July 23rd that permits the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization permits the airline to repurchase up to 9.4% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's board of directors believes its stock is undervalued.

Insider Activity at Southwest Airlines

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

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.

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