Southwest Airlines Co. $LUV Stock Purchased by U S Global Investors Inc.

Key Points

• U S Global Investors increased its Southwest Airlines stake by 13.9% in the third quarter, acquiring 275,204 additional shares. Southwest now represents about 9.3% of the firm’s portfolio and is its largest holding.
• Institutional investors own 80.82% of Southwest’s outstanding shares, while several other funds also raised their positions during the reported periods.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $47.41. Southwest’s latest quarterly results beat estimates, with EPS of $0.66 versus $0.57 expected and revenue of $8.42 billion.

U S Global Investors Inc. grew its position in Southwest Airlines Co. (NYSE:LUV - Free Report) by 13.9% in the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 2,260,841 shares of the airline's stock after acquiring an additional 275,204 shares during the quarter. Southwest Airlines accounts for about 9.3% of U S Global Investors Inc.'s holdings, making the stock its largest position. U S Global Investors Inc. owned 0.46% of Southwest Airlines worth $94,141,000 at the end of the most recent reporting period.

A number of other hedge funds also recently modified their holdings of the company. NewEdge Advisors LLC lifted its position in Southwest Airlines by 954.1% in the first quarter. NewEdge Advisors LLC now owns 127,331 shares of the airline's stock worth $4,784,000 after purchasing an additional 115,251 shares during the period. Gradient Investments LLC boosted its stake in Southwest Airlines by 19.3% during the second quarter. Gradient Investments LLC now owns 539,612 shares of the airline's stock worth $27,747,000 after buying an additional 87,146 shares in the last quarter. WINTON GROUP Ltd increased its holdings in Southwest Airlines by 218.8% in the 2nd quarter. WINTON GROUP Ltd now owns 93,837 shares of the airline's stock valued at $4,825,000 after buying an additional 64,402 shares during the period. PDT Partners LLC bought a new stake in Southwest Airlines in the 2nd quarter valued at $17,913,000. Finally, Bank of New York Mellon Corp increased its holdings in Southwest Airlines by 4.7% in the 1st quarter. Bank of New York Mellon Corp now owns 3,924,407 shares of the airline's stock valued at $147,440,000 after buying an additional 176,742 shares during the period. Institutional investors own 80.82% of the company's stock.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on LUV shares. Jefferies Financial Group increased their price objective on shares of Southwest Airlines from $44.00 to $50.00 and gave the company a "hold" rating in a research note on Wednesday, July 1st. Morgan Stanley upped their target price on shares of Southwest Airlines from $60.00 to $65.00 and gave the company an "overweight" rating in a research note on Monday, July 6th. Raymond James Financial lowered their target price on shares of Southwest Airlines from $60.00 to $54.00 and set an "outperform" rating on the stock in a research note on Monday, August 24th. Bank of America increased their price target on shares of Southwest Airlines from $40.00 to $45.00 and gave the stock an "underperform" rating in a research report on Wednesday, July 1st. Finally, Wall Street Zen cut shares of Southwest Airlines from a "buy" rating to a "hold" rating in a research note on Saturday, September 5th. Nine equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have assigned 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 $47.41.

Southwest Airlines Stock Performance

Shares of NYSE:LUV opened at $41.91 on Friday. The business's fifty day moving average price is $40.62 and its two-hundred day moving average price is $42.89. Southwest Airlines Co. has a fifty-two week low of $29.26 and a fifty-two week high of $55.11. The stock has a market capitalization of $20.51 billion, a price-to-earnings ratio of 15.16, a price-to-earnings-growth ratio of 1.06 and a beta of 1.16. The company has a debt-to-equity ratio of 0.54, a current ratio of 0.49 and a quick ratio of 0.42.

Southwest Airlines (NYSE:LUV - Get Free Report) last released its quarterly earnings data on Wednesday, October 21st. The airline reported $0.66 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.57 by $0.09. The firm had revenue of $8.42 billion during the quarter, compared to analyst estimates of $8.25 billion. Southwest Airlines had a return on equity of 18.07% and a net margin of 3.34%. The business's revenue for the quarter was up 21.2% compared to the same quarter last year. During the same period in the prior year, the company posted $0.11 earnings per share. As a group, analysts predict that Southwest Airlines Co. will post 2.91 EPS for the current fiscal year.

Southwest Airlines Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd were issued a $0.18 dividend. The ex-dividend date of this dividend was Thursday, September 3rd. This represents a $0.72 annualized dividend and a dividend yield of 1.7%. Southwest Airlines's dividend payout ratio is presently 44.17%.

Key Headlines Impacting Southwest Airlines

Here are the key news stories impacting Southwest Airlines this week:

• Positive Sentiment: Q3 results exceeded expectations: Southwest reported adjusted earnings of $0.66 per share versus roughly $0.57 expected, while revenue reached a record $8.42 billion, up 21.2% year over year. Southwest Beats Q3 Earnings and Revenue Estimates
• Positive Sentiment: Strong pricing and demand improved profitability: Passenger revenue increased 22.8%, revenue per available seat mile rose 21.6%, and the operating margin expanded to 4.5% from 0.5% a year earlier. Higher fares and fees helped offset an $821 million increase in fuel expense. LUV Q3 Earnings Beat on Record Revenues and Higher Fares
• Positive Sentiment: Near-term demand remains constructive: Management forecast fourth-quarter unit-revenue growth of 19% to 21% year over year and indicated that travel demand remains healthy. This helped reinforce expectations that Southwest’s commercial initiatives are gaining traction. Southwest Airlines: 3 Key Takeaways for Long-Term Investors

Southwest Airlines Company Profile

Southwest Airlines Co is a major U.S. passenger airline headquartered in Dallas, Texas. The company provides scheduled air transportation for leisure and business travelers, with service connecting cities throughout the United States and selected destinations in Mexico, the Caribbean, and Central America.

Southwest is known for its predominantly domestic network and point-to-point operating model. In addition to passenger flights, the company offers ancillary services and air cargo transportation.

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