Hodges Capital Management Inc. Takes Position in Southwest Airlines Co. $LUV

Hodges Capital Management Inc. bought a new position in shares of Southwest Airlines Co. (NYSE:LUV) during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund bought 83,308 shares of the airline’s stock, valued at approximately $3,130,000.

Several other institutional investors and hedge funds have also made changes to their positions in LUV. SHP Wealth Management purchased a new stake in Southwest Airlines during the 4th quarter worth $25,000. GHP Investment Advisors Inc. purchased a new position in Southwest Airlines in the 4th quarter valued at about $26,000. Entrust Financial LLC purchased a new position in 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 during the fourth quarter valued at about $26,000. Finally, Optima Capital LLC acquired a new stake in shares of Southwest Airlines during the fourth quarter valued at about $27,000. 80.82% of the stock is currently owned by hedge funds and other institutional investors.

Southwest Airlines Price Performance

LUV opened at $50.81 on Tuesday. The company has a 50-day moving average of $43.34 and a 200-day moving average of $43.59. The company has a market capitalization of $24.83 billion, a P/E ratio of 32.78, a PEG ratio of 0.51 and a beta of 1.12. Southwest Airlines Co. has a 1-year low of $28.98 and a 1-year high of $55.11. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.41 and a current ratio of 0.48.

Southwest Airlines (NYSE:LUV) last issued its earnings results on Wednesday, April 22nd. The airline reported $0.45 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.45. Southwest Airlines had a net margin of 2.83% and a return on equity of 10.66%. The business had revenue of $7.25 billion for the quarter, compared to analyst estimates of $8.46 billion. During the same quarter in the prior year, the business posted ($0.13) EPS. The company’s revenue for the quarter was up 12.8% on a year-over-year basis. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. Equities analysts expect that Southwest Airlines Co. will post 3.02 EPS for the current fiscal year.

Southwest Airlines Dividend Announcement

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 dividend of $0.18 per share. The ex-dividend date was Thursday, June 11th. This represents a $0.72 annualized dividend and a yield of 1.4%. Southwest Airlines’s dividend payout ratio is presently 46.45%.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the company. BNP Paribas Exane lifted their target price on Southwest Airlines from $24.00 to $33.00 and gave the stock an “underperform” rating in a research report on Tuesday, April 21st. JPMorgan Chase & Co. lowered their price objective on Southwest Airlines from $58.00 to $56.00 in a research note on Friday, March 27th. Susquehanna raised their price objective on Southwest Airlines from $44.00 to $55.00 and gave the company a “neutral” rating in a research note on Tuesday. Evercore lifted their price objective on Southwest Airlines from $44.00 to $52.00 in a report on Thursday, June 25th. Finally, Weiss Ratings lowered Southwest Airlines from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday, June 8th. Nine equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $49.58.

Southwest Airlines 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.