Primecap Management Co. CA Has $1.43 Billion Stock Holdings in Southwest Airlines Co. (NYSE:LUV)

Primecap Management Co. CA cut its holdings in shares of Southwest Airlines Co. (NYSE:LUV) by 0.7% during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 49,908,845 shares of the airline’s stock after selling 344,483 shares during the period. Southwest Airlines comprises approximately 1.0% of Primecap Management Co. CA’s portfolio, making the stock its 26th largest position. Primecap Management Co. CA owned 8.33% of Southwest Airlines worth $1,427,892,000 at the end of the most recent quarter.

Other hedge funds have also added to or reduced their stakes in the company. Ashton Thomas Private Wealth LLC acquired a new stake in Southwest Airlines during the 2nd quarter worth approximately $29,000. ICA Group Wealth Management LLC acquired a new stake in Southwest Airlines during the 4th quarter worth approximately $29,000. CVA Family Office LLC raised its holdings in Southwest Airlines by 179.5% during the 2nd quarter. CVA Family Office LLC now owns 1,034 shares of the airline’s stock worth $30,000 after purchasing an additional 664 shares during the last quarter. Pineridge Advisors LLC bought a new position in Southwest Airlines during the 4th quarter worth approximately $32,000. Finally, Innealta Capital LLC bought a new position in Southwest Airlines during the 2nd quarter worth approximately $33,000. 80.82% of the stock is currently owned by institutional investors and hedge funds.

Southwest Airlines Price Performance

LUV opened at $28.54 on Tuesday. The company has a debt-to-equity ratio of 0.48, a current ratio of 0.90 and a quick ratio of 0.85. The company has a market capitalization of $17.10 billion, a price-to-earnings ratio of 45.30, a P/E/G ratio of 27.22 and a beta of 1.16. The firm’s fifty day moving average price is $27.39 and its two-hundred day moving average price is $28.10. Southwest Airlines Co. has a 1 year low of $21.91 and a 1 year high of $35.18.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings data on Thursday, July 25th. The airline reported $0.58 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.51 by $0.07. The firm had revenue of $7.40 billion for the quarter, compared to the consensus estimate of $7.32 billion. Southwest Airlines had a net margin of 0.41% and a return on equity of 5.92%. The business’s revenue for the quarter was up 5.2% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.09 EPS. As a group, analysts anticipate that Southwest Airlines Co. will post 0.23 earnings per share for the current fiscal year.

Southwest Airlines Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 25th. Investors of record on Wednesday, September 4th will be issued a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 2.52%. The ex-dividend date of this dividend is Wednesday, September 4th. Southwest Airlines’s dividend payout ratio (DPR) is currently 114.29%.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on LUV. Barclays raised their price target on shares of Southwest Airlines from $26.00 to $27.00 and gave the stock an “equal weight” rating in a report on Wednesday, July 10th. TD Cowen lowered their price objective on shares of Southwest Airlines from $26.00 to $19.00 and set a “hold” rating for the company in a research note on Wednesday, July 17th. Citigroup lowered their price objective on shares of Southwest Airlines from $29.00 to $28.25 and set a “neutral” rating for the company in a research note on Monday, July 29th. Evercore ISI upgraded shares of Southwest Airlines from an “in-line” rating to an “outperform” rating and lifted their price objective for the company from $30.00 to $35.00 in a research note on Tuesday, September 3rd. Finally, Argus reiterated a “hold” rating on shares of Southwest Airlines in a research note on Tuesday, May 28th. Four analysts have rated the stock with a sell rating, nine have given a hold rating and four have assigned a buy rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $28.38.

Southwest Airlines Company Profile

Southwest Airlines Co operates as a passenger airline company that provides scheduled air transportation services in the United States and near-international markets. As of December 31, 2023, the company operated a total fleet of 817 Boeing 737 aircraft; and served 121 destinations in 42 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as ten near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos.