Southwest Airlines Co. $LUV Shares Sold by Cookson Peirce & Co. Inc.

Key Points

• Cookson Peirce reduced its Southwest Airlines position by 3.8% in the second quarter, selling 32,740 shares and retaining 830,605 shares valued at approximately $42.7 million.
• Analyst sentiment is mixed, with nine Buy, nine Hold and four Sell ratings; the consensus rating is Hold, with an average price target of $49.01.
• Southwest exceeded quarterly earnings expectations, reporting $0.94 EPS versus the $0.52 consensus and revenue of $8.72 billion. The company also declared a quarterly dividend of $0.18 per share, representing a 1.8% annualized yield.

Cookson Peirce & Co. Inc. lowered its position in Southwest Airlines Co. (NYSE:LUV - Free Report) by 3.8% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 830,605 shares of the airline's stock after selling 32,740 shares during the quarter. Southwest Airlines makes up approximately 1.4% of Cookson Peirce & Co. Inc.'s portfolio, making the stock its 17th biggest position. Cookson Peirce & Co. Inc. owned approximately 0.17% of Southwest Airlines worth $42,710,000 at the end of the most recent quarter.

Other large investors have also modified their holdings of the company. SHP Wealth Management purchased a new stake in Southwest Airlines in the 4th quarter valued at $25,000. Entrust Financial LLC purchased a new position in Southwest Airlines during the 4th quarter worth $26,000. Los Angeles Capital Management LLC purchased a new position in Southwest Airlines during the 4th quarter worth $26,000. Scarborough Advisors LLC acquired a new position in Southwest Airlines in the first quarter valued at $28,000. Finally, DV Equities LLC acquired a new position in Southwest Airlines in the fourth quarter valued at $30,000. 80.82% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

LUV has been the topic of several recent research reports. The Goldman Sachs Group boosted their price target on Southwest Airlines from $30.00 to $35.00 and gave the company a "sell" rating in a research report on Thursday, July 2nd. Evercore increased their price objective on Southwest Airlines from $44.00 to $52.00 in a research report on Thursday, June 25th. BMO Capital Markets lifted their target price on Southwest Airlines from $58.50 to $60.00 and gave the company an "outperform" rating in a research note on Friday, July 24th. Barclays boosted their target price on Southwest Airlines from $56.00 to $65.00 and gave the company an "overweight" rating in a report on Thursday, June 25th. Finally, TD Cowen cut their price target on Southwest Airlines from $53.00 to $48.00 and set a "buy" rating for the company in a research note on Monday, August 24th. Nine investment analysts have rated the stock with a Buy rating, nine have assigned 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 a consensus target price of $49.01.

Southwest Airlines Stock Performance

LUV opened at $39.70 on Friday. The stock has a market cap of $19.42 billion, a P/E ratio of 24.36, a P/E/G ratio of 0.36 and a beta of 1.14. 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 stock's 50 day simple moving average is $46.59 and its 200 day simple moving average is $44.12. Southwest Airlines Co. has a 1-year low of $29.26 and a 1-year high of $55.11.

Southwest Airlines (NYSE:LUV - Get Free Report) last issued its quarterly earnings data on Wednesday, July 22nd. The airline reported $0.94 EPS for the quarter, beating analysts' consensus estimates of $0.52 by $0.42. The firm had revenue of $8.72 billion for the quarter, compared to analysts' expectations of $8.58 billion. Southwest Airlines had a net margin of 2.78% and a return on equity of 14.15%. The firm's revenue was up 16.4% on a year-over-year basis. During the same period in the prior year, the company earned $0.43 EPS. 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. As a group, equities analysts anticipate that Southwest Airlines Co. will post 3.32 EPS for the current fiscal year.

Southwest Airlines Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd will be given a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date of this dividend is Thursday, September 3rd. Southwest Airlines's payout ratio is currently 44.17%.

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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