Handelsbanken Fonder AB Raises Stock Position in Southwest Airlines Co. $LUV

Handelsbanken Fonder AB raised its stake in Southwest Airlines Co. (NYSE:LUV) by 24.1% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 184,350 shares of the airline’s stock after buying an additional 35,765 shares during the period. Handelsbanken Fonder AB’s holdings in Southwest Airlines were worth $7,619,000 at the end of the most recent reporting period.

Other hedge funds also recently added to or reduced their stakes in the company. GHP Investment Advisors Inc. purchased a new position in Southwest Airlines in the fourth quarter valued at about $26,000. Entrust Financial LLC purchased a new position in Southwest Airlines in the fourth quarter valued at about $26,000. Optima Capital LLC purchased a new position in Southwest Airlines in the fourth quarter valued at about $27,000. Lodestone Wealth Management LLC purchased a new position in Southwest Airlines in the fourth quarter valued at about $29,000. Finally, Abich Financial Wealth Management LLC purchased a new position in Southwest Airlines in the third quarter valued at about $35,000. 80.82% of the stock is owned by hedge funds and other institutional investors.

Southwest Airlines Stock Performance

Shares of LUV opened at $40.85 on Friday. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.41 and a current ratio of 0.48. The company has a market capitalization of $19.96 billion, a price-to-earnings ratio of 26.35, a PEG ratio of 0.45 and a beta of 1.12. The company’s 50 day simple moving average is $39.47 and its 200 day simple moving average is $41.13. Southwest Airlines Co. has a 1 year low of $28.98 and a 1 year high of $55.11.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings data on Wednesday, April 22nd. The airline reported $0.45 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.45. The business had revenue of $7.25 billion for the quarter, compared to the consensus estimate of $8.46 billion. Southwest Airlines had a net margin of 2.83% and a return on equity of 10.66%. The company’s quarterly revenue was up 12.8% compared to the same quarter last year. During the same quarter in the prior year, the firm posted ($0.13) earnings per share. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. On average, sell-side analysts predict that Southwest Airlines Co. will post 2.76 EPS for the current year.

Southwest Airlines Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, July 2nd. Shareholders of record on Thursday, June 11th will be paid a dividend of $0.18 per share. The ex-dividend date of this dividend is Thursday, June 11th. This represents a $0.72 dividend on an annualized basis and a yield of 1.8%. Southwest Airlines’s dividend payout ratio (DPR) is currently 46.45%.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on the stock. The Goldman Sachs Group dropped their target price on shares of Southwest Airlines from $32.00 to $30.00 and set a “sell” rating for the company in a report on Wednesday, April 1st. BNP Paribas Exane increased their target price on shares of Southwest Airlines from $24.00 to $33.00 and gave the company an “underperform” rating in a report on Tuesday, April 21st. HSBC raised shares of Southwest Airlines from a “reduce” rating to a “hold” rating and increased their target price for the company from $24.40 to $36.10 in a report on Friday, April 24th. Seaport Research Partners upped their price target on shares of Southwest Airlines from $57.00 to $58.00 in a report on Thursday, January 29th. Finally, Raymond James Financial upped their price target on shares of Southwest Airlines from $45.00 to $55.00 and gave the company an “outperform” rating in a report on Friday, April 24th. Nine equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat.com, Southwest Airlines has an average rating of “Hold” and a consensus target price of $44.11.

Southwest Airlines Company 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.