Twin Lakes Capital Management LLC Sells 13,320 Shares of Southwest Airlines Co. $LUV

Twin Lakes Capital Management LLC trimmed its stake in Southwest Airlines Co. (NYSE:LUV) by 10.8% during the second quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 110,284 shares of the airline’s stock after selling 13,320 shares during the period. Southwest Airlines accounts for about 1.7% of Twin Lakes Capital Management LLC’s investment portfolio, making the stock its 19th largest position. Twin Lakes Capital Management LLC’s holdings in Southwest Airlines were worth $3,578,000 as of its most recent filing with the SEC.

A number of other institutional investors have also made changes to their positions in LUV. Alyeska Investment Group L.P. bought a new position in shares of Southwest Airlines in the 1st quarter valued at approximately $56,244,000. Nuveen LLC bought a new position in shares of Southwest Airlines in the 1st quarter valued at approximately $50,433,000. Primecap Management Co. CA raised its stake in shares of Southwest Airlines by 1.6% in the 1st quarter. Primecap Management Co. CA now owns 49,688,308 shares of the airline’s stock valued at $1,668,533,000 after acquiring an additional 788,255 shares in the last quarter. Adage Capital Partners GP L.L.C. bought a new position in shares of Southwest Airlines in the 1st quarter valued at approximately $18,163,000. Finally, Nearwater Capital Markets Ltd bought a new position in Southwest Airlines in the 1st quarter worth approximately $13,432,000. 80.82% of the stock is owned by institutional investors.

Southwest Airlines Price Performance

Shares of NYSE:LUV opened at $32.16 on Monday. Southwest Airlines Co. has a 1-year low of $23.82 and a 1-year high of $37.96. The firm has a market capitalization of $16.63 billion, a PE ratio of 49.48, a PEG ratio of 0.82 and a beta of 1.21. The business’s 50 day moving average is $32.37 and its 200-day moving average is $31.72. The company has a current ratio of 0.49, a quick ratio of 0.42 and a debt-to-equity ratio of 0.52.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings data on Tuesday, February 6th. The airline reported ($0.38) earnings per share for the quarter. Southwest Airlines had a return on equity of 6.39% and a net margin of 1.38%.The firm had revenue of $6.17 billion for the quarter. Sell-side analysts predict that Southwest Airlines Co. will post 1.55 earnings per share for the current year.

Southwest Airlines Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 24th. Stockholders of record on Wednesday, September 3rd were issued a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a dividend yield of 2.2%. The ex-dividend date of this dividend was Wednesday, September 3rd. Southwest Airlines’s dividend payout ratio (DPR) is presently 110.77%.

Southwest Airlines announced that its Board of Directors has approved a stock buyback plan on Wednesday, July 23rd that authorizes the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization authorizes the airline to reacquire up to 9.4% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s board of directors believes its shares are undervalued.

Analyst Upgrades and Downgrades

Several research analysts have commented on the company. Hsbc Global Res raised Southwest Airlines to a “moderate sell” rating in a research report on Thursday, July 24th. Jefferies Financial Group lifted their price target on Southwest Airlines from $30.00 to $31.00 and gave the stock a “hold” rating in a research report on Wednesday, October 1st. JPMorgan Chase & Co. lifted their price target on Southwest Airlines from $35.00 to $36.00 and gave the stock an “underweight” rating in a research report on Friday. TD Cowen lifted their price target on Southwest Airlines from $21.00 to $24.00 and gave the stock a “hold” rating in a research report on Friday, October 3rd. Finally, UBS Group dropped their price target on Southwest Airlines from $35.00 to $33.00 and set a “neutral” rating on the stock in a research report on Friday. Four research analysts have rated the stock with a Buy rating, ten have given a Hold rating and five have issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and a consensus price target of $33.38.

Insider Activity at Southwest Airlines

In related news, Director Sarah Feinberg purchased 1,500 shares of the firm’s stock in a transaction that occurred on Tuesday, August 5th. The shares were acquired at an average price of $30.01 per share, with a total value of $45,015.00. Following the purchase, the director directly owned 14,229 shares in the company, valued at $427,012.29. This represents a 11.78% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Gregg A. Saretsky purchased 3,345 shares of the firm’s stock in a transaction that occurred on Wednesday, August 6th. The stock was bought at an average cost of $30.03 per share, for a total transaction of $100,450.35. Following the purchase, the director owned 23,644 shares in the company, valued at $710,029.32. This represents a 16.48% increase in their ownership of the stock. The disclosure for this purchase can be found here. 0.79% of the stock is currently owned by company insiders.

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.