Handelsbanken Fonder AB Reduces Holdings in Southwest Airlines Co. $LUV

Handelsbanken Fonder AB lowered its position in Southwest Airlines Co. (NYSE:LUV) by 91.2% in the 2nd quarter, according to the company in its most recent filing with the SEC. The fund owned 15,626 shares of the airline’s stock after selling 161,637 shares during the quarter. Handelsbanken Fonder AB’s holdings in Southwest Airlines were worth $803,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in LUV. SHP Wealth Management bought a new position in Southwest Airlines during the fourth quarter worth about $25,000. Entrust Financial LLC bought a new stake in shares of Southwest Airlines in the fourth quarter valued at approximately $26,000. Los Angeles Capital Management LLC bought a new stake in shares of Southwest Airlines in the fourth quarter valued at approximately $26,000. Scarborough Advisors LLC purchased a new stake in shares of Southwest Airlines during the 1st quarter valued at approximately $28,000. Finally, DV Equities LLC bought a new position in Southwest Airlines in the 4th quarter worth approximately $30,000. 80.82% of the stock is currently owned by institutional investors.

Southwest Airlines Price Performance

NYSE:LUV opened at $41.45 on Thursday. The firm has a market capitalization of $20.28 billion, a price-to-earnings ratio of 25.43, a P/E/G ratio of 0.38 and a beta of 1.14. The company has a debt-to-equity ratio of 0.54, a quick ratio of 0.42 and a current ratio of 0.49. The stock has a fifty day moving average of $47.47 and a 200 day moving average of $44.61. Southwest Airlines Co. has a 52-week low of $29.26 and a 52-week high of $55.11.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings data on Wednesday, July 22nd. The airline reported $0.94 earnings per share for the quarter, topping the consensus estimate of $0.52 by $0.42. The company had revenue of $8.72 billion for the quarter, compared to analysts’ expectations of $8.58 billion. Southwest Airlines had a net margin of 2.78% and a return on equity of 14.15%. Southwest Airlines’s revenue for the quarter was up 16.4% compared to the same quarter last year. During the same period in the prior year, the business earned $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. On average, research analysts expect that Southwest Airlines Co. will post 3.41 EPS for the current fiscal year.

Southwest Airlines Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd will be issued a $0.18 dividend. The ex-dividend date of this dividend is Thursday, September 3rd. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.7%. Southwest Airlines’s dividend payout ratio is presently 44.17%.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on LUV shares. The Goldman Sachs Group increased their target price on Southwest Airlines from $30.00 to $35.00 and gave the stock a “sell” rating in a research report on Thursday, July 2nd. Wells Fargo & Company increased their price objective on Southwest Airlines from $44.00 to $50.00 and gave the stock an “equal weight” rating in a report on Tuesday, June 30th. Wall Street Zen upgraded Southwest Airlines from a “hold” rating to a “buy” rating in a research note on Sunday, July 5th. BMO Capital Markets lifted their target price on Southwest Airlines from $58.50 to $60.00 and gave the company an “outperform” rating in a report on Friday, July 24th. Finally, Morgan Stanley upped their price target on Southwest Airlines from $60.00 to $65.00 and gave the company an “overweight” rating in a research report on Monday, July 6th. Nine research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $49.55.

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.