Southwest Airlines (NYSE:LUV) Issues Earnings Results

Southwest Airlines (NYSE:LUV) issued its quarterly earnings data on Wednesday. The airline reported $0.94 EPS for the quarter, topping analysts’ consensus estimates of $0.51 by $0.43, FiscalAI reports. The firm had revenue of $8.72 billion during the quarter, compared to analyst estimates of $8.58 billion. Southwest Airlines had a return on equity of 10.66% and a net margin of 2.83%.

Southwest Airlines Stock Performance

Shares of LUV traded down $1.08 on Wednesday, reaching $47.61. 5,983,755 shares of the company’s stock traded hands, compared to its average volume of 8,237,609. The company has a current ratio of 0.48, a quick ratio of 0.41 and a debt-to-equity ratio of 0.66. The stock has a market cap of $23.27 billion, a PE ratio of 30.71, a PEG ratio of 0.46 and a beta of 1.12. The stock’s 50 day simple moving average is $45.61 and its two-hundred day simple moving average is $44.22. Southwest Airlines has a 52-week low of $28.98 and a 52-week high of $55.11.

Southwest Airlines Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, July 2nd. Stockholders of record on Thursday, June 11th were issued a $0.18 dividend. The ex-dividend date of this dividend was Thursday, June 11th. This represents a $0.72 annualized dividend and a dividend yield of 1.5%. Southwest Airlines’s dividend payout ratio is currently 46.45%.

Analysts Set New Price Targets

Several research analysts recently issued reports on the company. Citigroup lifted their target price on Southwest Airlines from $44.00 to $55.00 and gave the company a “neutral” rating in a research report on Friday, June 26th. Jefferies Financial Group increased their price target on Southwest Airlines from $44.00 to $50.00 and gave the company a “hold” rating in a research report on Wednesday, July 1st. UBS Group raised their price objective on Southwest Airlines from $53.00 to $61.00 and gave the company a “buy” rating in a research note on Tuesday, June 23rd. HSBC raised shares of Southwest Airlines from a “reduce” rating to a “hold” rating and lifted their price objective for the stock from $24.40 to $36.10 in a report on Friday, April 24th. Finally, BNP Paribas Exane upped their target price on shares of Southwest Airlines from $24.00 to $33.00 and gave the stock an “underperform” rating in a research note on Tuesday, April 21st. Nine research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat, Southwest Airlines currently has a consensus rating of “Hold” and a consensus price target of $49.58.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Corient Private Wealth LLC boosted its holdings in shares of Southwest Airlines by 25.8% in the 4th quarter. Corient Private Wealth LLC now owns 84,394 shares of the airline’s stock worth $3,284,000 after buying an additional 17,320 shares during the last quarter. Strive Financial Group LLC purchased a new stake in Southwest Airlines during the fourth quarter worth about $50,000. Mercer Global Advisors Inc. ADV raised its position in Southwest Airlines by 8.1% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 60,423 shares of the airline’s stock worth $2,498,000 after acquiring an additional 4,502 shares during the period. FAS Wealth Partners Inc. raised its position in Southwest Airlines by 6.2% in the fourth quarter. FAS Wealth Partners Inc. now owns 86,751 shares of the airline’s stock worth $3,585,000 after acquiring an additional 5,052 shares during the period. Finally, EP Wealth Advisors LLC purchased a new position in Southwest Airlines in the fourth quarter valued at about $298,000. Institutional investors own 80.82% of the company’s stock.

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.