Pacer Advisors Inc. Has $1.11 Million Holdings in Southwest Airlines Co. (NYSE:LUV)

Key Points

• Pacer Advisors Inc. reduced its stake in Southwest Airlines by 35.9% in the first quarter, now holding 32,974 shares valued at approximately $1.1 million.
• Several institutional investors have recently adjusted their positions in Southwest Airlines, with 80.82% of the stock currently owned by institutional investors and hedge funds.
• Southwest Airlines reported $0.43 EPS for the last quarter, missing expectations, while also announcing a $2.00 billion share buyback program to repurchase up to 9.4% of its stock.

Pacer Advisors Inc. lessened its position in Southwest Airlines Co. (NYSE:LUV - Free Report) by 35.9% in the 1st quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 32,974 shares of the airline's stock after selling 18,471 shares during the quarter. Pacer Advisors Inc.'s holdings in Southwest Airlines were worth $1,107,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in LUV. GAMMA Investing LLC increased its stake in shares of Southwest Airlines by 3,538.6% during the 1st quarter. GAMMA Investing LLC now owns 326,129 shares of the airline's stock worth $10,951,000 after purchasing an additional 317,166 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. raised its holdings in Southwest Airlines by 10.4% in the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 63,625 shares of the airline's stock worth $2,137,000 after acquiring an additional 5,981 shares during the period. Exchange Traded Concepts LLC grew its position in Southwest Airlines by 7.0% in the 1st quarter. Exchange Traded Concepts LLC now owns 11,625 shares of the airline's stock worth $390,000 after purchasing an additional 759 shares during the last quarter. Tidal Investments LLC grew its position in Southwest Airlines by 25.1% in the 4th quarter. Tidal Investments LLC now owns 55,691 shares of the airline's stock worth $1,872,000 after purchasing an additional 11,173 shares during the last quarter. Finally, State of Alaska Department of Revenue grew its position in Southwest Airlines by 1.5% in the 1st quarter. State of Alaska Department of Revenue now owns 69,413 shares of the airline's stock worth $2,330,000 after purchasing an additional 1,035 shares during the last quarter. Hedge funds and other institutional investors own 80.82% of the company's stock.

Southwest Airlines Trading Down 3.6%

Shares of LUV traded down $1.12 on Friday, reaching $29.81. 12,569,951 shares of the company's stock were exchanged, compared to its average volume of 13,055,449. The company has a current ratio of 0.56, a quick ratio of 0.49 and a debt-to-equity ratio of 0.51. The stock has a market capitalization of $15.66 billion, a P/E ratio of 45.17, a price-to-earnings-growth ratio of 0.77 and a beta of 1.26. The business has a 50 day moving average price of $33.45 and a two-hundred day moving average price of $31.28. Southwest Airlines Co. has a 12 month low of $23.58 and a 12 month high of $37.96.

Southwest Airlines (NYSE:LUV - Get Free Report) last posted its quarterly earnings results on Wednesday, July 23rd. The airline reported $0.43 earnings per share for the quarter, missing analysts' consensus estimates of $0.51 by ($0.08). The business had revenue of $7.24 billion for the quarter, compared to the consensus estimate of $7.30 billion. Southwest Airlines had a return on equity of 6.27% and a net margin of 1.43%. The company's quarterly revenue was down 2.1% on a year-over-year basis. During the same period last year, the firm earned $0.58 earnings per share. Research analysts anticipate that Southwest Airlines Co. will post 1.55 earnings per share for the current year.

Southwest Airlines announced that its Board of Directors has approved a stock buyback plan on Wednesday, July 23rd that permits the company to repurchase $2.00 billion in shares. This repurchase authorization permits the airline to reacquire up to 9.4% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's board believes its shares are undervalued.

Southwest Airlines Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 24th. Investors of record on Wednesday, September 3rd will be paid a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend is Wednesday, September 3rd. Southwest Airlines's payout ratio is 109.09%.

Analyst Upgrades and Downgrades

Several analysts have issued reports on the stock. Hsbc Global Res upgraded shares of Southwest Airlines to a "moderate sell" rating in a research report on Thursday, July 24th. Citigroup decreased their target price on shares of Southwest Airlines from $30.00 to $23.00 and set a "sell" rating on the stock in a research report on Monday, April 14th. Jefferies Financial Group upgraded shares of Southwest Airlines from an "underperform" rating to a "hold" rating and lifted their target price for the company from $24.00 to $33.00 in a research report on Tuesday, May 27th. Susquehanna decreased their target price on shares of Southwest Airlines from $34.00 to $25.00 and set a "neutral" rating on the stock in a research report on Monday, April 7th. Finally, Raymond James Financial reissued an "outperform" rating and set a $40.00 price target (down from $42.00) on shares of Southwest Airlines in a report on Tuesday, April 29th. Seven equities research analysts have rated the stock with a sell rating, nine have given a hold rating and four have assigned a buy rating to the stock. According to MarketBeat, Southwest Airlines presently has a consensus rating of "Hold" and a consensus target price of $32.75.

Southwest Airlines Company 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.