Investors Purchase Large Volume of Southwest Airlines Call Options (NYSE:LUV)

Southwest Airlines Co. (NYSE:LUV) was the recipient of unusually large options trading activity on Friday. Stock investors bought 36,182 call options on the stock. This represents an increase of 83% compared to the average volume of 19,747 call options.

Hedge Funds Weigh In On Southwest Airlines

A number of large investors have recently made changes to their positions in LUV. SHP Wealth Management acquired a new position in shares of Southwest Airlines in the 4th quarter valued at about $25,000. GHP Investment Advisors Inc. acquired a new position in shares of Southwest Airlines in the 4th quarter valued at about $26,000. Entrust Financial LLC acquired a new position in shares of Southwest Airlines in the 4th quarter valued at about $26,000. Los Angeles Capital Management LLC acquired a new position in shares of Southwest Airlines in the 4th quarter valued at about $26,000. Finally, Optima Capital LLC acquired a new position in shares of Southwest Airlines in the 4th quarter valued at about $27,000. Institutional investors and hedge funds own 80.82% of the company’s stock.

Analyst Upgrades and Downgrades

LUV has been the topic of several research reports. JPMorgan Chase & Co. dropped their price target on shares of Southwest Airlines from $58.00 to $56.00 in a research report on Friday, March 27th. Morgan Stanley boosted their price target on shares of Southwest Airlines from $55.00 to $60.00 and gave the stock an “overweight” rating in a research report on Monday, June 1st. UBS Group boosted their price target on shares of Southwest Airlines from $49.00 to $53.00 and gave the stock a “buy” rating in a research report on Tuesday, May 26th. Jefferies Financial Group dropped their price target on shares of Southwest Airlines from $42.00 to $37.00 and set a “hold” rating on the stock in a research report on Monday, April 27th. Finally, The Goldman Sachs Group cut their price objective on Southwest Airlines from $32.00 to $30.00 and set a “sell” rating on the stock in a report on Wednesday, April 1st. Nine equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and five have given a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $44.21.

Southwest Airlines Price Performance

NYSE LUV opened at $45.50 on Friday. The stock’s 50-day moving average price is $40.46 and its two-hundred day moving average price is $42.23. The company has a current ratio of 0.48, a quick ratio of 0.41 and a debt-to-equity ratio of 0.66. The company has a market cap of $22.24 billion, a PE ratio of 29.36, a PEG ratio of 0.49 and a beta of 1.15. Southwest Airlines has a 1 year low of $28.98 and a 1 year high of $55.11.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings data on Wednesday, April 22nd. The airline reported $0.45 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.45. The firm had revenue of $7.25 billion for the quarter, compared to the consensus estimate of $8.46 billion. Southwest Airlines had a return on equity of 10.66% and a net margin of 2.83%.The business’s revenue for the quarter was up 12.8% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($0.13) EPS. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. On average, analysts predict that Southwest Airlines will post 2.81 EPS for the current year.

Southwest Airlines Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, July 2nd. Shareholders of record on Thursday, June 11th will be issued a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 1.6%. The ex-dividend date is Thursday, June 11th. Southwest Airlines’s payout ratio is presently 46.45%.

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.