Primecap Management Co. CA Sells 848,030 Shares of Southwest Airlines Co. $LUV

Primecap Management Co. CA trimmed its stake in Southwest Airlines Co. (NYSE:LUV) by 1.7% in the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 47,996,113 shares of the airline’s stock after selling 848,030 shares during the quarter. Southwest Airlines makes up about 1.2% of Primecap Management Co. CA’s portfolio, making the stock its 25th biggest holding. Primecap Management Co. CA owned 0.09% of Southwest Airlines worth $1,531,556,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Cibc World Market Inc. increased its holdings in Southwest Airlines by 12.6% during the third quarter. Cibc World Market Inc. now owns 1,916,003 shares of the airline’s stock worth $61,140,000 after buying an additional 214,092 shares during the last quarter. RWA Wealth Partners LLC bought a new position in shares of Southwest Airlines in the 2nd quarter valued at about $1,652,000. Hussman Strategic Advisors Inc. acquired a new position in shares of Southwest Airlines during the 3rd quarter worth about $2,010,000. Gradient Investments LLC raised its holdings in shares of Southwest Airlines by 5.4% in the 3rd quarter. Gradient Investments LLC now owns 578,088 shares of the airline’s stock valued at $18,447,000 after purchasing an additional 29,665 shares during the period. Finally, Fox Run Management L.L.C. bought a new stake in shares of Southwest Airlines in the 2nd quarter valued at about $271,000. Institutional investors own 80.82% of the company’s stock.

Analyst Ratings Changes

A number of research firms recently commented on LUV. Deutsche Bank Aktiengesellschaft lifted their price target on Southwest Airlines from $40.00 to $48.00 and gave the stock a “buy” rating in a report on Friday, December 12th. BNP Paribas Exane lifted their target price on Southwest Airlines from $19.00 to $24.00 and gave the stock an “underperform” rating in a research note on Monday, December 8th. Wells Fargo & Company increased their price target on Southwest Airlines from $45.00 to $50.00 and gave the company an “equal weight” rating in a research note on Friday, January 30th. Wall Street Zen raised Southwest Airlines from a “hold” rating to a “buy” rating in a report on Saturday, February 7th. Finally, Bank of America lifted their price objective on shares of Southwest Airlines from $37.00 to $42.00 and gave the stock an “underperform” rating in a research report on Friday, January 30th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, nine have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $48.14.

Southwest Airlines Stock Performance

NYSE:LUV opened at $49.85 on Thursday. The stock has a 50 day simple moving average of $45.93 and a 200 day simple moving average of $37.60. The stock has a market cap of $24.49 billion, a P/E ratio of 59.34, a PEG ratio of 0.36 and a beta of 1.15. Southwest Airlines Co. has a 1-year low of $23.82 and a 1-year high of $55.11. The company has a current ratio of 0.52, a quick ratio of 0.45 and a debt-to-equity ratio of 0.57.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings data on Wednesday, January 28th. The airline reported $0.58 earnings per share for the quarter, topping the consensus estimate of $0.56 by $0.02. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.The firm had revenue of $7.44 billion for the quarter, compared to analysts’ expectations of $7.51 billion. During the same quarter last year, the business earned $0.56 EPS. The company’s quarterly revenue was up 7.4% compared to the same quarter last year. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. Research analysts anticipate that Southwest Airlines Co. will post 1.55 earnings per share for the current year.

Southwest Airlines Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, April 2nd. Shareholders of record on Thursday, March 12th will be paid a $0.18 dividend. The ex-dividend date is Thursday, March 12th. This represents a $0.72 annualized dividend and a yield of 1.4%. Southwest Airlines’s payout ratio is 85.71%.

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.