The Manufacturers Life Insurance Company Has $23.24 Million Position in Southwest Airlines Co. $LUV

Key Points

• The Manufacturers Life Insurance Company reduced its Southwest Airlines stake by 9.4% in the first quarter, selling 64,168 shares and retaining 618,678 shares valued at approximately $23.24 million. Institutional investors collectively own 80.82% of the company.
• Southwest reported quarterly earnings of $0.94 per share, exceeding the $0.52 consensus estimate, while revenue reached $8.72 billion, up 16.4% year over year and above expectations.
• The airline declared a quarterly dividend of $0.18 per share, equivalent to $0.72 annually and a 1.6% yield. Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $49.55.

The Manufacturers Life Insurance Company cut its stake in shares of Southwest Airlines Co. (NYSE:LUV - Free Report) by 9.4% during the first quarter, according to its most recent disclosure with the SEC. The institutional investor owned 618,678 shares of the airline's stock after selling 64,168 shares during the period. The Manufacturers Life Insurance Company owned about 0.13% of Southwest Airlines worth $23,244,000 at the end of the most recent reporting period.

Several other large investors have also recently added to or reduced their stakes in the stock. SHP Wealth Management acquired a new position in shares of Southwest Airlines in the fourth quarter worth $25,000. GHP Investment Advisors Inc. purchased a new position in Southwest Airlines in the fourth quarter valued at about $26,000. Entrust Financial LLC purchased a new position in Southwest Airlines in the fourth quarter valued at about $26,000. Los Angeles Capital Management LLC acquired a new position in Southwest Airlines in the 4th quarter worth about $26,000. Finally, Optima Capital LLC acquired a new position in Southwest Airlines in the 4th quarter worth about $27,000. Institutional investors and hedge funds own 80.82% of the company's stock.

Southwest Airlines Stock Performance

NYSE:LUV opened at $44.98 on Friday. Southwest Airlines Co. has a 52-week low of $28.98 and a 52-week high of $55.11. 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 company has a market cap of $22.01 billion, a price-to-earnings ratio of 27.60, a PEG ratio of 0.39 and a beta of 1.12. The firm's 50-day moving average is $46.61 and its 200-day moving average is $44.37.

Southwest Airlines (NYSE:LUV - Get Free Report) last posted its quarterly earnings results on Wednesday, July 22nd. The airline reported $0.94 EPS for the quarter, beating the consensus estimate of $0.52 by $0.42. Southwest Airlines had a return on equity of 14.15% and a net margin of 2.78%.The firm had revenue of $8.72 billion during the quarter, compared to analysts' expectations of $8.58 billion. During the same quarter in the prior year, the firm posted $0.43 EPS. The company's revenue for the quarter was up 16.4% on a year-over-year basis. 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. Equities research analysts anticipate that Southwest Airlines Co. will post 3.49 earnings per share for the current year.

Southwest Airlines Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, September 3rd will be paid a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date is Thursday, September 3rd. Southwest Airlines's dividend payout ratio is presently 44.17%.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on the company. Barclays lifted their price target on Southwest Airlines from $56.00 to $65.00 and gave the company an "overweight" rating in a report on Thursday, June 25th. HSBC raised shares of Southwest Airlines from a "reduce" rating to a "hold" rating and boosted their target price for the stock from $24.40 to $36.10 in a research report on Friday, April 24th. JPMorgan Chase & Co. reduced their price objective on shares of Southwest Airlines from $60.00 to $59.00 and set an "overweight" rating for the company in a research note on Friday, July 24th. Weiss Ratings upgraded shares of Southwest Airlines from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday, July 21st. Finally, Jefferies Financial Group raised their target price on Southwest Airlines from $44.00 to $50.00 and gave the company a "hold" rating in a report on Wednesday, July 1st. Nine investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $49.55.

Southwest Airlines 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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