Franklin Resources Inc. Buys 2,626,853 Shares of Southwest Airlines Co. $LUV

Franklin Resources Inc. raised its stake in shares of Southwest Airlines Co. (NYSE:LUV) by 7.0% in the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 40,200,530 shares of the airline’s stock after purchasing an additional 2,626,853 shares during the period. Franklin Resources Inc. owned 8.18% of Southwest Airlines worth $1,661,488,000 at the end of the most recent quarter.

Other large investors have also bought and sold shares of the company. O Shaughnessy Asset Management LLC lifted its stake in shares of Southwest Airlines by 0.4% in the fourth quarter. O Shaughnessy Asset Management LLC now owns 220,571 shares of the airline’s stock worth $9,116,000 after acquiring an additional 809 shares during the period. CenterBook Partners LP lifted its stake in shares of Southwest Airlines by 116.7% in the fourth quarter. CenterBook Partners LP now owns 25,358 shares of the airline’s stock worth $1,048,000 after acquiring an additional 13,655 shares during the period. ING Groep NV lifted its stake in shares of Southwest Airlines by 441.9% in the fourth quarter. ING Groep NV now owns 592,935 shares of the airline’s stock worth $24,506,000 after acquiring an additional 483,525 shares during the period. Los Angeles Capital Management LLC acquired a new position in shares of Southwest Airlines in the fourth quarter worth approximately $26,000. Finally, Havemeyer Place LP bought a new stake in shares of Southwest Airlines in the 4th quarter valued at $106,000. 80.82% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

LUV has been the topic of a number of analyst reports. The Goldman Sachs Group reduced their price objective on shares of Southwest Airlines from $32.00 to $30.00 and set a “sell” rating on the stock in a research note on Wednesday, April 1st. UBS Group upped their price objective on shares of Southwest Airlines from $49.00 to $53.00 and gave the company a “buy” rating in a research note on Tuesday, May 26th. Wall Street Zen upgraded Southwest Airlines from a “hold” rating to a “buy” rating in a report on Saturday. Bank of America decreased their price target on Southwest Airlines from $42.00 to $40.00 and set an “underperform” rating for the company in a report on Wednesday, April 1st. Finally, BNP Paribas Exane increased their price target on Southwest Airlines from $24.00 to $33.00 and gave the stock an “underperform” rating in a report on Tuesday, April 21st. Nine investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and five have given a Sell rating to the stock. According to data from MarketBeat.com, Southwest Airlines has a consensus rating of “Hold” and an average price target of $44.21.

Southwest Airlines Stock Up 0.2%

Southwest Airlines stock opened at $41.61 on Monday. The company has a quick ratio of 0.41, a current ratio of 0.48 and a debt-to-equity ratio of 0.66. Southwest Airlines Co. has a 12-month low of $28.98 and a 12-month high of $55.11. The firm’s fifty day moving average is $39.93 and its 200 day moving average is $41.91. The company has a market capitalization of $20.34 billion, a PE ratio of 26.84, a PEG ratio of 0.45 and a beta of 1.15.

Southwest Airlines (NYSE:LUV) last released its earnings results on Wednesday, April 22nd. The airline reported $0.45 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.45. Southwest Airlines had a net margin of 2.83% and a return on equity of 10.66%. The company had revenue of $7.25 billion for the quarter, compared to the consensus estimate of $8.46 billion. During the same quarter in the previous year, the company earned ($0.13) EPS. Southwest Airlines’s quarterly revenue was up 12.8% compared to the same quarter last year. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. As a group, sell-side analysts predict that Southwest Airlines Co. will post 2.81 EPS for the current fiscal year.

Southwest Airlines Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, July 2nd. Stockholders of record on Thursday, June 11th will be given a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date of this dividend is Thursday, June 11th. Southwest Airlines’s dividend payout ratio is 46.45%.

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.