Wealthfront Advisers LLC Acquires New Stake in Southwest Airlines Co. $LUV

Key Points

• Wealthfront Advisers acquired a new 41,418-share stake in Southwest Airlines during the second quarter, valued at approximately $2.13 million. Institutional investors collectively own 80.82% of the company.
• Southwest reported quarterly earnings of $0.94 per share, beating estimates of $0.52, while revenue reached $8.72 billion and rose 16.4% year over year.
• The airline declared a quarterly dividend of $0.18 per share, equal to an annualized $0.72 payout and a 1.8% yield. Analysts maintain a consensus “Hold” rating with an average price target of $49.55.

Wealthfront Advisers LLC acquired a new position in shares of Southwest Airlines Co. (NYSE:LUV - Free Report) in the second quarter, according to the company in its most recent filing with the SEC. The firm acquired 41,418 shares of the airline's stock, valued at approximately $2,130,000.

Several other institutional investors have also recently added to or reduced their stakes in the company. AQR Capital Management LLC boosted its stake in shares of Southwest Airlines by 100.6% during the 1st quarter. AQR Capital Management LLC now owns 39,347 shares of the airline's stock worth $1,303,000 after purchasing an additional 19,729 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of Southwest Airlines by 5.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 61,060 shares of the airline's stock valued at $2,050,000 after buying an additional 3,141 shares during the last quarter. Empowered Funds LLC raised its position in shares of Southwest Airlines by 7.6% in the first quarter. Empowered Funds LLC now owns 7,459 shares of the airline's stock valued at $250,000 after buying an additional 527 shares during the last quarter. EverSource Wealth Advisors LLC lifted its stake in shares of Southwest Airlines by 73.4% during the second quarter. EverSource Wealth Advisors LLC now owns 5,690 shares of the airline's stock valued at $185,000 after buying an additional 2,408 shares during the period. Finally, First Trust Advisors LP lifted its stake in shares of Southwest Airlines by 47.4% during the second quarter. First Trust Advisors LP now owns 307,602 shares of the airline's stock valued at $9,979,000 after buying an additional 98,986 shares during the period. Institutional investors and hedge funds own 80.82% of the company's stock.

Southwest Airlines Price Performance

Southwest Airlines stock opened at $39.87 on Friday. Southwest Airlines Co. has a 1 year low of $29.26 and a 1 year high of $55.11. The firm has a 50 day moving average price of $47.38 and a 200 day moving average price of $44.56. The company has a market cap of $19.50 billion, a price-to-earnings ratio of 24.46, a PEG ratio of 0.37 and a beta of 1.14. The company has a debt-to-equity ratio of 0.54, a quick ratio of 0.42 and a current ratio of 0.49.

Southwest Airlines (NYSE:LUV - Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The airline reported $0.94 EPS for the quarter, topping the consensus estimate of $0.52 by $0.42. The firm had revenue of $8.72 billion during the quarter, compared to analyst estimates of $8.58 billion. Southwest Airlines had a net margin of 2.78% and a return on equity of 14.15%. Southwest Airlines's revenue for the quarter was up 16.4% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.43 earnings per share. 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. Sell-side analysts predict that Southwest Airlines Co. will post 3.41 earnings per share for the current year.

Southwest Airlines Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd will be issued 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 presently 44.17%.

Analyst Ratings Changes

Several analysts have commented on LUV shares. Morgan Stanley lifted their target price 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. Susquehanna increased their price target on Southwest Airlines from $44.00 to $55.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 7th. Raymond James Financial raised their price objective on Southwest Airlines from $55.00 to $60.00 and gave the stock an "outperform" rating in a report on Monday, July 6th. Weiss Ratings raised Southwest Airlines from a "hold (c)" rating to a "hold (c+)" rating in a research report on Tuesday. Finally, Citigroup dropped their target price on Southwest Airlines from $55.00 to $50.00 and set a "neutral" rating for the company in a research note on Friday, July 24th. Nine research analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have given a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $49.55.

Southwest Airlines Company 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.

Want to see what other hedge funds are holding LUV? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Southwest Airlines Co. (NYSE:LUV - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source