Hsbc Holdings PLC Has $38.92 Million Stock Position in Southwest Airlines Co. $LUV

Hsbc Holdings PLC boosted its holdings in Southwest Airlines Co. (NYSE:LUV) by 23.8% in the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 939,398 shares of the airline’s stock after purchasing an additional 180,619 shares during the quarter. Hsbc Holdings PLC owned about 0.19% of Southwest Airlines worth $38,916,000 at the end of the most recent quarter.

Other institutional investors have also recently added to or reduced their stakes in the company. SHP Wealth Management acquired a new stake in shares of Southwest Airlines during the 4th quarter worth approximately $25,000. GHP Investment Advisors Inc. acquired a new position in shares of Southwest Airlines during the 4th quarter valued at $26,000. Entrust Financial LLC acquired a new position in shares of Southwest Airlines during the 4th quarter valued at $26,000. Los Angeles Capital Management LLC bought a new position in Southwest Airlines during the fourth quarter worth $26,000. Finally, Optima Capital LLC bought a new position in Southwest Airlines during the fourth quarter worth $27,000. 80.82% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of research firms have commented on LUV. Jefferies Financial Group raised their price target on shares of Southwest Airlines from $37.00 to $44.00 and gave the stock a “hold” rating in a report on Tuesday, June 16th. The Goldman Sachs Group cut their price objective on shares of Southwest Airlines from $32.00 to $30.00 and set a “sell” rating on the stock in a research report on Wednesday, April 1st. Argus reduced their target price on Southwest Airlines from $55.00 to $45.00 and set a “buy” rating for the company in a research note on Friday, April 24th. Wells Fargo & Company dropped their price target on Southwest Airlines from $50.00 to $44.00 and set an “equal weight” rating on the stock in a research note on Monday, March 16th. Finally, BMO Capital Markets cut their price target on Southwest Airlines from $57.50 to $45.00 and set an “outperform” rating on the stock in a report on Tuesday, March 31st. Nine investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and five have issued a Sell rating to the company. According to MarketBeat, the company has an average rating of “Hold” and an average price target of $44.95.

Southwest Airlines Stock Performance

LUV opened at $49.38 on Wednesday. Southwest Airlines Co. has a 1-year low of $28.98 and a 1-year high of $55.11. The company has a market cap of $24.14 billion, a price-to-earnings ratio of 31.86, a PEG ratio of 0.51 and a beta of 1.15. The company’s fifty day moving average price is $41.71 and its two-hundred day moving average price is $42.92. The company has a current ratio of 0.48, a quick ratio of 0.41 and a debt-to-equity ratio of 0.66.

Southwest Airlines (NYSE:LUV) last issued its quarterly earnings data on Wednesday, April 22nd. The airline reported $0.45 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.45. The firm had revenue of $7.25 billion during the quarter, compared to analysts’ expectations of $8.46 billion. Southwest Airlines had a net margin of 2.83% and a return on equity of 10.66%. The business’s revenue was up 12.8% on a year-over-year basis. During the same period last year, the company earned ($0.13) earnings per share. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. On average, analysts expect that Southwest Airlines Co. will post 2.93 EPS for the current fiscal year.

Southwest Airlines Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, July 2nd. Shareholders of record on Thursday, June 11th will be paid a dividend of $0.18 per share. The ex-dividend date is Thursday, June 11th. This represents a $0.72 dividend on an annualized basis and a yield of 1.5%. Southwest Airlines’s payout ratio is 46.45%.

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.