Weiss Asset Management LP Boosts Holdings in Southwest Airlines Co. $LUV

Key Points

• Weiss Asset Management boosted its stake in Southwest Airlines by 52% in the first quarter, bringing its holdings to 161,040 shares valued at about $6.05 million.
• Southwest’s latest quarterly results were better than expected, with EPS of $0.94 versus $0.52 expected and revenue of $8.72 billion, up 16.4% from a year earlier.
• Analysts remain mixed but broadly cautious-to-positive on the stock: the consensus rating is Hold with an average price target of $49.55, while several firms recently raised targets after the earnings beat.

Weiss Asset Management LP increased its stake in shares of Southwest Airlines Co. (NYSE:LUV - Free Report) by 52.0% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 161,040 shares of the airline's stock after acquiring an additional 55,122 shares during the quarter. Weiss Asset Management LP's holdings in Southwest Airlines were worth $6,050,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently bought and sold shares of the stock. SHP Wealth Management purchased a new position in shares of Southwest Airlines during the fourth quarter worth about $25,000. GHP Investment Advisors Inc. purchased a new stake in shares of Southwest Airlines in the 4th quarter valued at about $26,000. Entrust Financial LLC purchased a new stake in shares of Southwest Airlines in the 4th quarter valued at about $26,000. Los Angeles Capital Management LLC acquired a new stake in shares of Southwest Airlines in the 4th quarter valued at about $26,000. Finally, Optima Capital LLC acquired a new stake in shares of Southwest Airlines in the 4th quarter valued at about $27,000. 80.82% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research firms recently issued reports on LUV. Susquehanna raised 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. BNP Paribas Exane boosted their price objective on Southwest Airlines from $24.00 to $33.00 and gave the company an "underperform" rating in a research note on Tuesday, April 21st. Raymond James Financial increased their price objective on Southwest Airlines from $55.00 to $60.00 and gave the company an "outperform" rating in a report on Monday, July 6th. The Goldman Sachs Group raised their target price on shares of Southwest Airlines from $30.00 to $35.00 and gave the stock a "sell" rating in a research report on Thursday, July 2nd. Finally, Argus cut their target price on shares of Southwest Airlines from $55.00 to $45.00 and set a "buy" rating on the stock in a report on Friday, April 24th. Nine analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $49.55.

Southwest Airlines Stock Up 1.1%

Southwest Airlines stock opened at $45.19 on Friday. The stock has a 50 day moving average of $46.01 and a two-hundred day moving average of $44.29. Southwest Airlines Co. has a twelve month low of $28.98 and a twelve month high of $55.11. The stock has a market capitalization of $22.09 billion, a price-to-earnings ratio of 27.72, a PEG ratio of 0.37 and a beta of 1.12. The company has a current ratio of 0.49, a quick ratio of 0.41 and a debt-to-equity ratio of 0.54.

Southwest Airlines (NYSE:LUV - Get Free Report) last released its earnings results on Wednesday, July 22nd. The airline reported $0.94 earnings per share (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 business had revenue of $8.72 billion for the quarter, compared to analyst estimates of $8.58 billion. During the same quarter in the previous year, the company posted $0.43 earnings per share. The company's revenue for the quarter was up 16.4% compared to the same quarter last year. 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. As a group, research analysts expect that Southwest Airlines Co. will post 3.59 earnings per share for the current year.

Southwest Airlines Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, July 2nd. Shareholders of record on Thursday, June 11th were paid a $0.18 dividend. This represents a $0.72 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend was Thursday, June 11th. Southwest Airlines's payout ratio is currently 44.17%.

Trending Headlines about Southwest Airlines

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

• Positive Sentiment: BMO Capital Markets raised its price target on Southwest Airlines to $60 from $58.50 and reiterated an outperform rating, signaling confidence in further upside after the company’s earnings beat. Benzinga report
• Positive Sentiment: Barclays kept a buy rating on Southwest Airlines, reinforcing the bullish view from analysts following the airline’s latest quarter. Barclays article
• Positive Sentiment: Southwest reported second-quarter adjusted EPS of $0.94, well above estimates, and record quarterly revenue, showing improved earnings power and solid demand. Yahoo Finance report
• Positive Sentiment: Several earnings recaps highlighted stronger fares, commercial gains, and margin expansion, suggesting the company’s transformation efforts are starting to show through in results. Zacks report

About Southwest Airlines

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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