Tidal Investments LLC Lowers Stake in Southwest Airlines Co. $LUV

Key Points

• Tidal Investments cut its Southwest Airlines stake by 70.5% in the second quarter, selling 86,602 shares and retaining 36,168 shares valued at approximately $1.86 million. Institutional investors collectively own 80.82% of LUV.
• Analyst sentiment remains mixed: nine analysts rate the stock Buy, nine Hold and four Sell, producing an overall Hold rating and a consensus price target of $48.05.
• Southwest reported quarterly EPS of $0.94, well above the $0.52 consensus estimate, on revenue of $8.72 billion, up 16.4% year over year. The company also declared a quarterly dividend of $0.18 per share, representing a 1.8% annualized yield.

Tidal Investments LLC reduced its position in Southwest Airlines Co. (NYSE:LUV - Free Report) by 70.5% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 36,168 shares of the airline's stock after selling 86,602 shares during the quarter. Tidal Investments LLC's holdings in Southwest Airlines were worth $1,860,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors have also recently modified their holdings of the company. SHP Wealth Management purchased a new position in shares of Southwest Airlines during the 4th quarter valued at $25,000. Archer Investment Corp bought a new stake in Southwest Airlines during the second quarter valued at about $32,000. Fiduciary Financial Advisors bought a new stake in Southwest Airlines during the second quarter valued at about $32,000. Scarborough Advisors LLC purchased a new position in shares of Southwest Airlines in the first quarter valued at about $28,000. Finally, Grove Bank & Trust lifted its position in shares of Southwest Airlines by 109.4% in the second quarter. Grove Bank & Trust now owns 871 shares of the airline's stock valued at $45,000 after acquiring an additional 455 shares in the last quarter. 80.82% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of research firms have recently weighed in on LUV. Weiss Ratings raised Southwest Airlines from a "hold (c)" rating to a "hold (c+)" rating in a research note on Tuesday, August 18th. Wall Street Zen cut Southwest Airlines from a "buy" rating to a "hold" rating in a report on Saturday, September 5th. Zacks Research upgraded Southwest Airlines from a "strong sell" rating to a "hold" rating in a research note on Thursday, June 25th. JPMorgan Chase & Co. cut their price objective on shares of Southwest Airlines from $60.00 to $59.00 and set an "overweight" rating for the company in a report on Friday, July 24th. Finally, Morgan Stanley lifted their price objective on shares of Southwest Airlines from $60.00 to $65.00 and gave the company an "overweight" rating in a research report on Monday, July 6th. Nine 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, Southwest Airlines has an average rating of "Hold" and a consensus price target of $48.05.

Trending Headlines about Southwest Airlines

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

• Positive Sentiment: Southwest said it expects to meet its third-quarter profit target despite higher fuel costs, suggesting resilient travel demand, pricing power and cost controls may offset some of the margin pressure. Southwest Airlines expects to meet Q3 profit goal despite higher fuel costs
• Positive Sentiment: Southwest’s planned airport lounges and 2027 premium co-branded credit card with JPMorgan Chase could create new high-margin loyalty and ancillary-revenue streams while strengthening the airline’s appeal to premium travelers. The first lounges are planned for Austin, Baltimore, Honolulu and Nashville. Southwest finally joins the lounge business
• Positive Sentiment: Higher airfares across the industry, driven by elevated fuel and labor expenses, could help Southwest recover increased operating costs if demand remains solid. Airline industry continues to witness higher air fares
• Neutral Sentiment: Southwest presented at Morgan Stanley’s Laguna Conference, giving investors an update on strategy and outlook. Recent weakness in the shares has raised questions about valuation, but the event itself provided no clearly stated material change in fundamentals. Southwest Airlines Morgan Stanley conference transcript
• Negative Sentiment: Jet-fuel prices are squeezing Southwest and other major airlines, prompting carriers to cut flights and trim lower-priced capacity. Reduced flying could limit revenue growth, while higher fuel costs threaten profitability if fare increases do not fully offset them. Major airlines cut flights as higher jet fuel prices hit carriers

Southwest Airlines Price Performance

NYSE:LUV opened at $40.32 on Friday. The company has a current ratio of 0.49, a quick ratio of 0.42 and a debt-to-equity ratio of 0.54. The company has a market capitalization of $19.73 billion, a P/E ratio of 24.74, a P/E/G ratio of 0.36 and a beta of 1.13. Southwest Airlines Co. has a 12 month low of $29.26 and a 12 month high of $55.11. The business's 50-day moving average is $43.41 and its 200 day moving average is $42.81.

Southwest Airlines (NYSE:LUV - Get Free Report) last announced its quarterly earnings results on Wednesday, July 22nd. The airline reported $0.94 EPS for the quarter, beating analysts' consensus estimates of $0.52 by $0.42. Southwest Airlines had a return on equity of 14.15% and a net margin of 2.78%.The company had revenue of $8.72 billion during the quarter, compared to analyst estimates of $8.58 billion. During the same period in the prior year, the company earned $0.43 earnings per share. The firm's revenue 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. On average, equities research analysts forecast that Southwest Airlines Co. will post 3.28 earnings per share for the current fiscal year.

Southwest Airlines Announces Dividend

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

About Southwest Airlines

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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