Arrowstreet Capital Limited Partnership Has $182.53 Million Stake in Southwest Airlines Co. $LUV

Arrowstreet Capital Limited Partnership lessened its position in Southwest Airlines Co. (NYSE:LUV) by 37.6% in the first quarter, HoldingsChannel.com reports. The fund owned 4,858,283 shares of the airline’s stock after selling 2,932,884 shares during the period. Arrowstreet Capital Limited Partnership’s holdings in Southwest Airlines were worth $182,526,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors also recently modified their holdings of the company. MCF Advisors LLC lifted its stake in Southwest Airlines by 28.5% in the 4th quarter. MCF Advisors LLC now owns 915 shares of the airline’s stock valued at $38,000 after purchasing an additional 203 shares during the last quarter. World Investment Advisors boosted its stake in shares of Southwest Airlines by 1.0% during the 4th quarter. World Investment Advisors now owns 21,148 shares of the airline’s stock worth $843,000 after acquiring an additional 210 shares during the period. Parkside Financial Bank & Trust boosted its stake in shares of Southwest Airlines by 7.5% during the 4th quarter. Parkside Financial Bank & Trust now owns 3,063 shares of the airline’s stock worth $127,000 after acquiring an additional 213 shares during the period. Annis Gardner Whiting Capital Advisors LLC boosted its stake in shares of Southwest Airlines by 1.5% during the 4th quarter. Annis Gardner Whiting Capital Advisors LLC now owns 16,437 shares of the airline’s stock worth $682,000 after acquiring an additional 235 shares during the period. Finally, Transcend Capital Advisors LLC increased its holdings in shares of Southwest Airlines by 4.2% during the 4th quarter. Transcend Capital Advisors LLC now owns 6,726 shares of the airline’s stock worth $278,000 after acquiring an additional 272 shares during the last quarter. 80.82% of the stock is currently owned by institutional investors and hedge funds.

Key Southwest Airlines News

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

Analyst Ratings Changes

LUV has been the topic of a number of research analyst reports. Wells Fargo & Company increased their price target on Southwest Airlines from $44.00 to $50.00 and gave the company an “equal weight” rating in a research note on Tuesday, June 30th. Citigroup decreased their price objective on shares of Southwest Airlines from $55.00 to $50.00 and set a “neutral” rating on the stock in a report on Friday. Wall Street Zen raised shares of Southwest Airlines from a “hold” rating to a “buy” rating in a research report on Sunday, July 5th. Susquehanna raised their target price on shares of Southwest Airlines from $44.00 to $55.00 and gave the stock a “neutral” rating in a research note on Tuesday, July 7th. Finally, Raymond James Financial lifted their target price on shares of Southwest Airlines from $55.00 to $60.00 and gave the stock an “outperform” rating in a report on Monday, July 6th. Nine equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Southwest Airlines presently has an average rating of “Hold” and a consensus target price of $49.55.

Southwest Airlines Stock Up 1.1%

Shares of NYSE LUV opened at $45.19 on Friday. The stock has a market capitalization of $22.09 billion, a P/E ratio of 27.72, a PEG ratio of 0.37 and a beta of 1.12. The stock’s fifty day moving average is $46.01 and its 200 day moving average is $44.29. Southwest Airlines Co. has a 52 week low of $28.98 and a 52 week high of $55.11. The company has a debt-to-equity ratio of 0.54, a quick ratio of 0.41 and a current ratio of 0.49.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings data on Wednesday, July 22nd. The airline reported $0.94 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.52 by $0.42. The firm had revenue of $8.72 billion for the quarter, compared to the consensus estimate of $8.58 billion. Southwest Airlines had a net margin of 2.78% and a return on equity of 14.15%. The business’s revenue for the quarter was up 16.4% on a year-over-year basis. During the same period in the prior year, the company 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 forecast that Southwest Airlines Co. will post 3.67 earnings per share 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 given a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 1.6%. The ex-dividend date was Thursday, June 11th. Southwest Airlines’s payout ratio is currently 44.17%.

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.