Southwest Airlines Co. $LUV Stock Position Reduced by The Manufacturers Life Insurance Company

Key Points

• The Manufacturers Life Insurance Company reduced its Southwest Airlines position by 5.1% in the second quarter, selling 31,268 shares and retaining 587,410 shares valued at approximately $30.2 million. Institutional investors collectively own 80.82% of LUV.
• Southwest reported quarterly earnings of $0.94 per share, surpassing the $0.52 analyst consensus, while revenue rose 16.4% year over year to $8.72 billion.
• The stock opened at $39.19, below its 50-day and 200-day moving averages, while analysts maintain a consensus “Hold” rating with an average price target of $48.05. Southwest also declared a quarterly dividend of $0.18 per share, implying a 1.8% yield.

The Manufacturers Life Insurance Company decreased its position in Southwest Airlines Co. (NYSE:LUV - Free Report) by 5.1% in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 587,410 shares of the airline's stock after selling 31,268 shares during the quarter. The Manufacturers Life Insurance Company owned 0.12% of Southwest Airlines worth $30,205,000 as of its most recent SEC filing.

A number of other institutional investors have also made changes to their positions in LUV. SHP Wealth Management bought a new position in Southwest Airlines during the fourth quarter worth $25,000. Entrust Financial LLC acquired a new position in Southwest Airlines in the fourth quarter worth $26,000. Los Angeles Capital Management LLC bought a new stake in Southwest Airlines during the fourth quarter valued at $26,000. Archer Investment Corp bought a new stake in Southwest Airlines during the second quarter valued at $32,000. Finally, Fiduciary Financial Advisors acquired a new stake in shares of Southwest Airlines during the second quarter worth $32,000. 80.82% of the stock is currently owned by institutional investors.

Southwest Airlines Stock Performance

Shares of LUV opened at $39.19 on Friday. Southwest Airlines Co. has a 1 year low of $29.26 and a 1 year high of $55.11. The company has a market cap of $19.17 billion, a price-to-earnings ratio of 24.04, a price-to-earnings-growth ratio of 0.36 and a beta of 1.13. The company has a debt-to-equity ratio of 0.54, a quick ratio of 0.42 and a current ratio of 0.49. The firm has a fifty day moving average of $44.21 and a 200-day moving average of $43.16.

Southwest Airlines (NYSE:LUV - Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The airline reported $0.94 earnings per share for the quarter, topping analysts' consensus estimates of $0.52 by $0.42. The business 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 company's revenue for the quarter was up 16.4% compared to the same quarter last year. During the same quarter last 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 3.28 earnings per share for the current year.

Southwest Airlines Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Shareholders of record on Thursday, September 3rd will be paid a $0.18 dividend. The ex-dividend date is Thursday, September 3rd. This represents a $0.72 annualized dividend and a dividend yield of 1.8%. Southwest Airlines's dividend payout ratio (DPR) is presently 44.17%.

Wall Street Analyst Weigh In

LUV has been the topic of a number of recent research reports. Jefferies Financial Group raised their price target on shares of Southwest Airlines from $44.00 to $50.00 and gave the stock a "hold" rating in a research report on Wednesday, July 1st. Morgan Stanley increased their price objective on shares of Southwest Airlines from $60.00 to $65.00 and gave the stock an "overweight" rating in a research note on Monday, July 6th. JPMorgan Chase & Co. cut their target price on shares of Southwest Airlines from $60.00 to $59.00 and set an "overweight" rating on the stock in a report on Friday, July 24th. UBS Group decreased their target price on Southwest Airlines from $56.00 to $49.00 and set a "buy" rating for the company in a research note on Thursday. Finally, The Goldman Sachs Group upped their target price on Southwest Airlines from $30.00 to $35.00 and gave the company a "sell" rating in a report on Thursday, July 2nd. Nine investment 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. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $48.05.

Southwest Airlines Company Profile

Southwest Airlines Co is a major U.S. passenger airline headquartered in Dallas, Texas. Operating under the Southwest Airlines brand, the company provides scheduled air transportation for domestic and international travelers and also offers air cargo services.

Southwest was founded in 1967 and began commercial service in 1971, initially connecting Dallas, Houston and San Antonio. The airline expanded its network across the United States and now serves numerous destinations in the United States, Mexico, the Caribbean, Central America and other nearby international markets.

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