Southwest Airlines Co. $LUV Shares Sold by Bank of Nova Scotia

Key Points

• Bank of Nova Scotia cut its Southwest Airlines stake by 51.1% in the first quarter, selling 35,055 shares and retaining 33,531 shares valued at approximately $1.26 million. Institutional investors collectively own 80.82% of the airline’s stock.
• Analyst sentiment is mixed, with nine Buy, nine Hold, and four Sell ratings. Southwest has an average rating of Hold and a consensus price target of $49.55.
• Southwest reported quarterly EPS of $0.94, beating estimates of $0.52, while revenue reached $8.72 billion. The company also maintains a quarterly dividend of $0.18 per share, equivalent to a 1.6% annual yield.

Bank of Nova Scotia lowered its position in Southwest Airlines Co. (NYSE:LUV - Free Report) by 51.1% in the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 33,531 shares of the airline's stock after selling 35,055 shares during the quarter. Bank of Nova Scotia's holdings in Southwest Airlines were worth $1,260,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also made changes to their positions in the business. Norges Bank purchased a new position in Southwest Airlines during the 4th quarter valued at about $172,038,000. Massachusetts Financial Services Co. MA acquired a new position in Southwest Airlines during the fourth quarter worth about $143,450,000. Franklin Resources Inc. lifted its holdings in shares of Southwest Airlines by 7.0% in the fourth quarter. Franklin Resources Inc. now owns 40,200,530 shares of the airline's stock valued at $1,661,488,000 after purchasing an additional 2,626,853 shares in the last quarter. Mizuho Markets Americas LLC purchased a new stake in shares of Southwest Airlines in the fourth quarter valued at about $55,320,000. Finally, Nearwater Capital Markets Ltd grew its position in shares of Southwest Airlines by 75.0% in the fourth quarter. Nearwater Capital Markets Ltd now owns 2,800,000 shares of the airline's stock valued at $115,724,000 after purchasing an additional 1,200,000 shares during the last quarter. 80.82% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on LUV. The Goldman Sachs Group raised their price objective on shares of Southwest Airlines from $30.00 to $35.00 and gave the stock a "sell" rating in a research note on Thursday, July 2nd. Weiss Ratings raised Southwest Airlines from a "hold (c)" rating to a "hold (c+)" rating in a research note on Tuesday, July 21st. BMO Capital Markets increased their target price on Southwest Airlines from $58.50 to $60.00 and gave the company an "outperform" rating in a report on Friday, July 24th. Bank of America raised their price target on Southwest Airlines from $40.00 to $45.00 and gave the stock an "underperform" rating in a research report on Wednesday, July 1st. Finally, Evercore boosted their price target on Southwest Airlines from $44.00 to $52.00 in a report on Thursday, June 25th. Nine investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have issued a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $49.55.

Southwest Airlines Stock Performance

NYSE:LUV opened at $44.36 on Thursday. The firm has a 50 day simple moving average of $46.43 and a 200-day simple moving average of $44.36. The company has a debt-to-equity ratio of 0.54, a current ratio of 0.49 and a quick ratio of 0.42. The firm has a market cap of $21.70 billion, a PE ratio of 27.21, a P/E/G ratio of 0.40 and a beta of 1.12. Southwest Airlines Co. has a 1-year low of $28.98 and a 1-year high of $55.11.

Southwest Airlines (NYSE:LUV - Get Free Report) last announced its earnings results on Wednesday, July 22nd. The airline reported $0.94 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.52 by $0.42. The firm had revenue of $8.72 billion for the quarter, compared to analyst estimates of $8.58 billion. Southwest Airlines had a net margin of 2.78% and a return on equity of 14.15%. Southwest Airlines's revenue was up 16.4% compared to the same quarter last year. During the same quarter last year, the business earned $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. On average, equities analysts expect that Southwest Airlines Co. will post 3.52 EPS for the current year.

Southwest Airlines Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, July 2nd. Shareholders of record on Thursday, June 11th were paid 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 currently 44.17%.

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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